There has been a lot of talk in recent years that a college degree has lost some if its value. The criticisms include the rising cost of a university education, the belief that the changing economy no longer provide graduates the job guarantees it once did; and the liberal-skewed faculties at many institutions.
You can’t argue too much about any of those. University tuition keeps rising, the American economy continues to evolve and a lot of schools seem drawn to academics with similar viewpoints instead of offering students a better sample of the marketplace of ideas.
Here’s another reason to question the value of a college education: The number of graduates in default on their student loans is rising rapidly.
The Associated Press reports that 9.5 million student borrowers are in default on their loans, meaning they are at least nine months behind on their payments. That’s about one of every five people currently repaying an education loan from the federal government.
“Out of $1.7 trillion in federally backed student loans nationwide, $233.3 billion is in default,” the AP reported.
Many borrowers had several years of generous terms from the government, which suspended loan payment requirements during the pandemic. This delayed default for a lot of borrowers.
President Joe Biden even tried to cancel the debts of a bunch of longtime debtors, but in 2023 the Supreme Court said he needed the approval of Congress to do it. Ultimately, loan payments resumed in 2024, and defaults started rising rapidly nine months later, in June 2025.
Some interesting details:
• Mississippi has the nation’s highest student loan default rate, at 28.3% of borrowers. The next seven highest default rates are practically a list of Southeastern Conference states: Louisiana, Alabama, West Virginia, Oklahoma, Georgia, South Carolina and Texas.
• Of the 15 states with the highest default rates, New Mexico, at No. 14, is the only one President Trump didn’t win in 2024.
• Students who attended for-profit schools are more often behind on their loans. Federal statistics say 33% of graduates from for-profit colleges are three months or more behind. That is twice the rate of borrowers who attended a public university. Also, looking at the schools in the top quarter for nonpayment, 76% are for-profit schools.
People, including college students, usually act in their own financial self-interest. Or at least they should. But those with student loans definitely test that theory, because it’s apparent that too many of them borrowed too much money for college or didn’t pay enough attention to the terms of repayment.
There’s no doubt some borrowers just had bad luck, like a lengthy illness, that affected their ability to repay. The job market, the economy and even the pandemic may have hurt others. And some simply may lack the financial ability to keep up, as there are plenty of other living expenses after college.
But when one of every five borrowers is behind — a full 20% — that is an unmistakable signal that some people overdid it when arranging a loan. They may have attended a school that’s too expensive or overestimated how much money they would earn. Whatever happened, too many are saddled with a burden that will last for years, even decades.
Future college students and their families need to be aware of this debt trap. There are plenty of ways to reduce the amount a student borrows: Get a job for a year or two after high school to build up money for tuition. Start at a less expensive community college. When it comes to four-year schools, shop around and see what works financially.
And finally, be realistic about what you hope to earn after you graduate. That’s the key: If you’re repaying student loans and you’re making less than you expected, or your expenses are higher, there could be trouble ahead.
Statistics still say a college degree makes a financial difference. People with a bachelor’s degree average $80,000 a year, while those with a high school diploma average $48,000. So there appears to be value to completing a higher education program — unless your student loan debt has created a massive burden.
— Jack Ryan, McComb Enterprise-Journal
