College Debt: What's the Usual Amount for Graduates?

As a high school junior, I'm starting to really think about college and its costs. How much debt do most college grads typically have? Are there ways to minimize this or scholarships I should be aware of?

The average student loan debt for American students graduating in 2024 was about $38,000. However, it's important to note that there's a wide range of debt loads, as the amount varies significantly depending on the school, major, and financial background of the student.

One overarching strategy to reduce this debt is to choose a college that offers generous financial aid. Many schools meet 100% of demonstrated need for all admitted students, a policy that can significantly reduce your out-of-pocket expenses.

Another way to minimize student loans is via scholarships. There are thousands of scholarships out there; some are merit-based, some are need-based, and some are based on a student's interests, anticipated major, background etc. It's recommended that you research and apply widely to scholarships as a high school junior and senior.

Applying for financial aid via the FAFSA (Free Application for Federal Student Aid) is another key step. The FAFSA determines your eligibility for not just federal aid, but also state and school-based aid.

Lastly, let's not forget about part-time job opportunities either on-campus or off-campus, and work-study programs, which can help cover some expenses as well.

Remember that every student's financial situation is different, and what works for one person might not work for another. It's a good idea to have discussions with your family, your high school counselor, and future college's financial aid office to make a plan that best fits your circumstances.