High Schoolers Vastly Underestimate Future Student Loan Debt

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High school students often underestimate the amount of student debt they will accumulate while pursuing a college degree. According to Fidelity’s 2025 College Savings and Student Debt study, students anticipate graduating with around $17,000 in loans. However, data from The Institute for College Access & Success (TICAS) shows that the actual average student debt at graduation is much higher, with students at four-year public colleges borrowing an average of $27,470 and those at private four-year colleges borrowing an average of $33,673.

The study also revealed that parents have similar misconceptions about student debt, expecting their children to owe $16,000 after graduation. In reality, parent debt has increased significantly in recent years, with the average parent PLUS debt burden surpassing $29,000 as of 2022.

The survey, which included 2,008 respondents in grades 10 to 12 of high school or parents of students in those grades, highlighted a significant knowledge gap when it comes to student debt. Many respondents admitted to making estimates based on their own guesses.

Despite the potential for changes in student borrowing patterns, recent trends indicate a consistent level of borrowing among college students. While the average student loan amount has remained relatively stable over the years, the Fidelity survey results suggest that students and parents may not be adequately prepared for the financial realities of higher education.

Cost Considerations in College Planning

Aside from student debt, the Fidelity survey also addressed general college cost concerns. Nearly half of students stated that cost is the most important factor when choosing a college, with seniors placing even greater emphasis on tuition prices. This aligns with other studies that have identified cost as a major driver in college decision-making.

Communication between parents and students regarding college costs has shown improvement, with a majority of respondents indicating that they have discussed how to finance a college education. Experts recommend early discussions about budget constraints to help students focus on realistic college options.

While many families have made plans for paying for college, there is room for improvement in discussing specific financial details. Topics such as expected starting salaries, borrowing limits, and loan repayment responsibilities should be addressed to ensure a comprehensive financial plan for higher education.