Student loans are a reality for many college students, but understanding the numbers can help you make smarter decisions before you borrow.
Here are some important student loan statistics to know:
According to Education Data Initiative, as of 2025...
Most students who borrow spend years (or decades) repaying. That’s why it’s so important to plan ahead and borrow strategically.
Student loans can help make college possible, but they can also impact your financial future after graduation.
Higher loan balances can affect your:
The good news? You have more control than you might think if you start now.
Reducing how much you borrow is one of the smartest financial moves you can make.
Don’t just look at tuition. Compare financial aid offers and calculate what you’ll actually pay out of pocket.
PRO TIP: Use RISLA's FREE College Calculator to estimate costs and have a better understanding of what you may owe after financial aid.
Scholarships = free money. Even a few smaller awards can significantly reduce how much you need to borrow.
PRO TIP: Take advantage of RIScholarships.org! It's a scholarship search tool catered specially for Rhode Island students to discover hundreds of local and national opportunities!
Starting at a lower-cost school and transferring later can cut your total college costs in half. Students who attend a lower-cost community college may be able to transfer credits to a different school and earn their degree from the second school, but at a much lower cost.
As a Rhode Island resident and high school grad, you may be able to take advantage of the Rhode Island Promise and earn your Associate's degree for free!
Just because you’re offered a certain loan amount doesn’t mean you should take all of it. Stick to borrowing however much you owe after financial aid, rather than borrowing more "just in case".
If you do need to borrow, making informed choices can save you thousands over time.
They typically offer:
PRO TIP: Federal student loans and other financial aid opportunities will not be offered to you unless you file the FAFSA and renew it every year that you are in school! Trust us, you will not want to miss any financial aid opportunities - you can be eligible for more than you think!
Taking interest into account will determine how much you’ll actually repay, not just what you borrow upfront, or in other words, your principal. The higher the interest rate, the more you may owe over time.
For federal loans, understand the difference between subsidized and unsubsidized loans: subsidized means the government will cover your interest while in school, whereas unsubsidized means interest will start accruing as soon as the loan is disbursed. Keep this in mind.
A helpful guideline: your student loan payment should be manageable based on your expected starting salary after graduation. For example, if you have a starting salary of $50,000, but will have to balance a $500+ student loan payment on top of your other life costs, it may be smart to rethink some things.
Student loan debt builds over time. Keep a running total to avoid surprises. Periodically check on your studentaid.gov account to get a good picture of your federal student debt. If you have private loans, make sure to check on those, as well.
Know your repayment options and timeline so you’re prepared when your grace period ends.
PRO TIP: Studentaid.gov has a useful Loan Simulator tool to determine what repayment option may be best for you.
With Rhode Island borrowers carrying higher-than-average debt, planning ahead is especially important.
Focus on:
Student loans can be a helpful tool, but they shouldn’t be an afterthought.
The decisions you make now can shape your financial future long after college.
The goal is to make college more affordable. If that includes loans, it’s best to:
The RISLA College Planning Center offers free guidance to help students and families:
Schedule a free appointment to get personalized support and make confident decisions about paying for college.
SOURCE: Education Data Initiative