You Paid $40,000 to Earn the Right to Be Broke for the Next 20 Years

By Rafaela Shpigelman

According to Education Data, the number of individuals in the United States enrolled in college rose from 11 million people in 1976 to 19.2 million people in 2024. College has become a fundamental part of life for millions of Americans — a near-mandatory stepping stone to a career. However, with the surge in enrollment has come a staggering surge in cost. The average private college tuition climbed from $2,534 in 1975 to $39,307 in 2025, a jaw-dropping increase of nearly 1,570%. In 1975, that tuition represented approximately 7% of the average salary. By 2026, it consumes roughly 62% of it. Though the number of people who attend college has skyrocketed, many struggle to pay — and that is where student loans enter the picture.

Student loans are a form of financial aid provided to students pursuing higher education. They are used to cover tuition, supplies, and living expenses, and are offered either by the federal government or by private institutions such as banks and credit unions. However, they are not gifts — as the name implies, they must be repaid, either through interest-based plans, income-driven repayment, or graduated repayment schedules. They may seem like a lifeline in the moment, but they often create long-term financial strain and heavy burdens on those who receive them.

"People go to college to learn, to grow, and to build a career — yet many spend the rest of their lives consumed by the stress of repaying the loans that got them there."

According to research published in Science Direct, student loans are associated with significantly poorer psychological functioning. The stress of repayment — especially when it first begins — is immense, and the amounts owed are not always compatible with borrowers' incomes. This incompatibility generates chronic stress, disrupted sleep, and, in some cases, suicidal thoughts. According to the University of Georgia News, the majority of people who discuss student loans on social platforms such as Twitter and Reddit do so negatively, expressing high levels of anxiety. Those who already experience symptoms of mental illness report that the weight of loan repayment worsens those symptoms considerably.

Beyond mental health, student loans restrict major life decisions. For instance, they limit how much a person can save toward the down payment on a home. According to the Education Data Initiative, 72% of people who carry student loan debt say it will delay their ability to purchase a home — a milestone that, according to the Urban Institute, remains central to the American Dream. Student loans also push back other major milestones: according to The American College of Education, many borrowers delay marriage and starting a family because their savings are continuously drained by loan payments.

In summary, while student loans make higher education accessible to those who could not otherwise afford it, they frequently leave a permanent mark on borrowers' financial lives. For those who can repay quickly, they may be manageable. But for the millions who cannot, the consequences — financial hardship, chronic stress, and deferred dreams — are severe and lasting.