Before your student chooses a college — or starts dreaming of an unaffordable one — here’s some data they need to see.
A 2026 survey of over 12,000 students found that of those currently holding student debt, 71% already regret their decision to borrow — suggesting the reality of interest rates and repayment terms is hitting home far sooner than in previous generations. That regret has real backing: about 42% of federal student loan borrowers reported making tradeoffs between student loan payments and covering basic needs.
About 60% of U.S. adults who have ever held student loan debt have put off making important financial decisions because of it, a figure that rises to 70% for Gen Z and millennial borrowers. In fact those borrowers commonly say they would have made different choices to avoid debt: working more during school, choosing a cheaper school, applying for more scholarships, or starting at a community college.
The ways debt constrains borrowers’ lives are wide-ranging:
- Student loans have prevented borrowers from saving for retirement or emergencies, buying a home, or paying off other debt like credit cards.
- Student loans have limited career choices or forced borrowers to move in with friends or family because they could not afford rent.
- The debt crisis has hit a critical point: as of December 2025, approximately 7.7 million borrowers with $180 billion in outstanding federal student loans are in default — about 11% of the total federal portfolio.
It’s not just young borrowers. The student loan crisis extends well into middle age and retirement — and that’s a cautionary tale worth sharing with your student now.
Generation X — adults roughly in their late 40s and 50s — holds a combined $308.5 billion in outstanding federal student loan debt, and many in this generation have also taken on Parent PLUS loans to help their children pay for college. As of early 2025, around 26% of borrowers aged 50 to 59 were more than 90 days delinquent on their loans — and about 20% of loan balances held by borrowers aged 50 and older were moving toward serious delinquency, the highest rate of any generation.
The picture gets more sobering for older Americans. Older Americans with student debt are the fastest growing segment of borrowers, with the number of people aged 62 and older surging 60% since 2017. Money As of September 2025, approximately 3.1 million borrowers were aged 62 or older, holding a combined $136.9 billion in debt — roughly 8% of the entire federal student loan portfolio. The average balance for these borrowers is just over $44,000. Common reasons for carrying debt into retirement include returning to school as an adult and, crucially, taking out Parent PLUS loans for their children. And the consequences can be severe: an estimated 452,000 people aged 62 and older had student loans in default this year and are likely to face the Department of Education’s renewed forced collections. Older Americans who are delinquent on their federal student loans could face garnishment of up to 15% of their monthly Social Security benefits.
With that being said, if a federal direct student loan is the difference between going to college and not going to college, it’s likely still a wise investment in your future. Among Class of 2024 bachelor’s degree recipients, 47% graduated with student loan debt, carrying an average balance of $29,560. Monthly payments on that amount over 10 years run roughly $330, well below the typical wage premium a college degree commands. Even so, a majority of U.S. adults with student loans say their education created career opportunities that would not otherwise be available to them.
One important caveat for 2026: the federal student loan landscape has changed significantly. For new borrowers, all existing income-based plans are eliminated and replaced with a new “Repayment Assistance Plan” (RAP), which raises payments for most borrowers, extends the maximum repayment term to 30 years, and eliminates deferment and forbearance options for those facing unemployment or economic hardship. Students should factor this into their borrowing decisions.
And of course, it’s never too late to go back to the college and appeal your financial aid award. The ongoing enrollment and demographic cliffs — multiple factors driving a decline in the number of high school students enrolling in college — have increased the leverage students have when appealing financial aid packages. With greater competition for students, many colleges may offer larger scholarships, grants and other forms of tuition discounting to drive enrollment. For details on how to appeal, go here.
