70% Say Student Loans Delayed Major Life Milestones — Is College Still Worth It?

For several generations, kids across the country heard the same advice: Go to college. Get a degree. You will be financially set for life. Millions of students followed that advice, but now those kids are sitting with debt – that same debt is now holding them back.

A 2026 MoneyLion study shows that a four-year college degree is not only creating debt but preventing seven in 10 student borrowers from reaching key milestones like getting married, starting a business or having a baby. One in five student borrowers no longer thinks college is worth it. Seven out of 10 student borrowers are losing sleep over their financial burden.

As a personal finance expert and certified financial health counselor, I’ve witnessed, over several decades, the increased expense associated with getting an undergraduate degree. Student borrowers are realizing that the promise of “financial stability” with a college degree is more myth than reality. For millions, there was an implicit understanding that the debt would be worth it, and the degree would eventually pay for itself. Now, that assumption isn’t holding true for most borrowers.

Student borrowers aren’t just asking how to pay off their loans anymore — they're asking something bigger: Was the college degree even worth it?

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Quick Take: What Borrowers Are Actually Saying

• Only 1 in 5 Americans believes a college degree is worth it.

• 7 in 10 student loan borrowers say loans delayed at least one major life event like getting married, having a baby or starting a business.

• 4 in 10 student borrowers didn’t fully understand the loan that they were signing up for.

• 70% of survey participants say it is harder to land a full-time job today than it was for their parents.

• 80% of respondents think it's likely today's grads will have to look for a job outside their field.

• Nearly 45% of survey participants say money is their biggest source of stress.

• Almost 7 out of 10 borrowers say financial worry has cost them sleep in the past year.

The Stats Are National. The Financial Pain Is Personal.

MoneyLion’s survey results show that the numbers are not overstated but are a reality for many student borrowers.

According to the data, over 14% said that it would take five to nine years to pay off the debt, while a significant number of student borrowers said it would take more than a decade to pay off the student loans.

One of the key findings from the survey is one in 10 borrowers believed they would never pay off the debt. What does this mean day-to-day?

• Your monthly student loan payment will compete with other necessary payments like rent, groceries and transportation costs.

• It also may mean you won’t have a chance to grow your emergency fund.

• You will likely delay milestone moments, like saving for a house or purchasing a car.

• Your retirement savings may also start later than they should.

That $39,000 Loan? It's Going To Cost You a Lot More

According to the Education Data Initiative, the average federal student loan debt is $39,075. For a bachelor’s degree, most students borrow over $30,000.

By the time you fully pay off your loan, you are likely going to pay an additional $40,000 more. It shouldn’t come as a surprise that those ages 50 to 61 have the highest average federal student loan debt at $46,556.

Here’s a look at what this debt means in the long-term:

The Diploma Promise vs. What Grads Actually Get

Most college students believe that if they get good grades and get the degree, it would all be worth it because the salary would meet or exceed their expectations. For many surveyed, that’s not exactly how it played out when they finally landed their job.

• Only 14% said that their salary came in higher than what they expected.

• The more striking percentage is that nearly 40% of those surveyed said that their paycheck was lower than they expected.

The expectation gap indicates that the salaries new grads receive will not likely be enough to address their debt burden.

Was It Worth It?

• Only 18% of those surveyed believed that a four-year degree is worth it.

• More than half were on the fence and suggested the worth it question depends on your major, your field, your school and how much debt you're left holding when it's over.

As a certified financial expert, I can understand why the “worth it” question garnered a mixed response. It’s worth noting, though, that the Social Security Administration has documented the following:

• Men with bachelor's degrees can earn $900,000 more in median lifetime earnings than high school graduates.

• Women with bachelor's degrees can earn $630,000 more in median lifetime earnings than high school graduates.

Defining worth is subjective. For example, borrowing $30,000 for a nursing degree is different from borrowing $75,000 for a history degree with limited earning potential.

The more important question becomes whether or not those who are borrowing this money for schooling understand what they may owe at the end of their four-year degree.

According to the survey data, about 40% didn’t completely understand what they were signing. I can see why it would be overwhelming for an 18-year-old to sign a loan, not understanding the longer impacts of compound interest, repayment timelines and income shortfalls.

Having financial education in and around how much you will owe in four years may push some to choose another degree that may have a higher payoff.

Before You Take on Student Loans, Consider This Advice

When I took out my student loans, I must confess that I likely didn’t do my due diligence in researching what made the most sense for my finances. I made mistakes.

You should be proactive and strategic before you apply for student loans. Nancy Goodman, founder and Executive Director of College Money Matters, has seven practical tips on how to approach this.

Set a Borrowing Limit Early and Stick to It

Goodman suggested that students “should borrow what the federal government will lend.”

• For most undergraduate students, that amount is around $27,000.

• Borrowers would need roughly $38,000 to comfortably repay that level of debt.

Goodman said that's a reasonable salary expectation in most fields, making it a relatively safe borrowing threshold.

Her final advice on the matter: “Don’t borrow more money than you expect to make when you graduate.”

Have the Money Conversation at the Beginning — Not the End

Families tend to wait until March for acceptance letters to arrive before talking about finances. By then, a student's heart is set on a school, and emotions drive the decision.

“What could make the debt problem better is moving the money conversation to the beginning of the application process,” said Goodman.

Parents should:

• Talk about how much they’ve already saved.

• Decide how much they’re realistically willing to borrow.

• Choose schools that fit within that budget.

Avoid Private Lenders If at All Possible

Private lenders charge high interest rates and have no incentive to help you pay off the loan quickly. “If you have to borrow from a private lender, pay it back, first and fast,” said Goodman.

Plan To Graduate in Four Years

Much to my surprise, Goodman said that “60% of students take six or more years to graduate.” According to Goodman, this often happens because students:

• Drop classes.

• Don’t take enough credits each semester.

• Take classes that don’t count toward their major.

Every extra semester can mean taking on more debt, especially once federal borrowing limits are exhausted and private lenders enter the picture.

Include Room and Board — Not Just Tuition

Room and board have become massive cost drivers.

According to Goodman, at the University of New York, the tuition is $11,000, and room and board cost $11,000. “Factoring in $44,000 for four years makes room and board a serious expense factor,” Goodman said.

Living at home, commuting or choosing lower-cost housing options can save tens of thousands of dollars over four years.

Don't Overlook Highly Regarded, Lower-Cost Options

Some public universities, city colleges and community colleges can deliver strong education at a fraction of the price — but students only discover them if the money conversation happens early enough to apply.

Use the 10% Rule for Repayment

Goodman recommended that annual student loan payments should represent no more than 10% of pre-tax income.

Run that math before you borrow and not after you’re stuck with the loan.

The Final Takeaway

Ultimately, whether taking on student loan debt is worth it is a personal decision. It depends on your goals, career path and what makes sense for your future.

For me personally, going to college represented more than a piece of paper. Yes, there was debt, but there were also valuable lessons, experiences and opportunities I might not have had otherwise.

It’s a decision each person has to make for themselves. But before signing on the dotted line, make sure you understand how student loan debt may shape your financial future.

Methodology

MoneyLion surveyed 1,000 Americans ages 18 and older from across the U.S. between April 20 and April 24, 2026. Questions focused on student loan debt, college affordability, career outcomes and financial stress.

Sources

• Education Data Initiative. 2025. "Average Student Loan Debt."

• Social Security. "Education and Lifetime Earnings."

Photo credit: zimmytws / iStock