How to graduate college with little to no student loans
For the most part, college costs continue to rise, as does the amount students borrow to cover expenses. But there is an exception.
Overall, college tuition has increased at an average annual rate of 5.6% since 1983, significantly outpacing other household expenses, according to a study by . JP Morgan Asset Management.
But when broken down by institution type, the differences are striking: For the 2025-26 academic year, tuition and fees for private four-year colleges averaged $45,000. University Board. At four-year in-state public colleges, the figure was $11,950.
Over the decade from 2015-16 to 2025-26, inflation-adjusted average tuition and fees increased 2% for private nonprofit four-year students while falling 7% for public four-year students.
More than half of students who earn bachelor’s degrees from public colleges and universities graduate without student debt. Borrowers’ average debt is $27,420, down nearly 20% over the past decade.
Those who earn bachelor’s degrees from private institutions graduate with an average debt of $34,420 per borrower, according to findings from the College Board.
“Public universities provide the most affordable path to a high-quality college education,” said Waded Cruzado, president of the Association of Public and Land-grant Universities. “Even more progress has been made in terms of net tuition and fees that students actually pay,” he said.
In fact, very few families pay the school’s sticker fee. In total, approximately 75% of all undergraduate students receive some form of financial aid. National Center for Education Statistics.
‘The affordability of the university is a major concern’
Still, as prices at some schools approach At six figures a year, the cost can be a significant deterrent. “College affordability is a major concern,” said Robert Franek, editor-in-chief of The Princeton Review.
For the majority of students and their families, financial aid is the most important factor in decisions about where to attend school and how to pay for it. The amount of aid offered is important, as is the distinction between grants, scholarships, work-study opportunities, and student loans.
“For parents and students shopping for college, what matters is the sticker prices of the schools they are considering, not how those prices compare to previous years, or even decades ago,” Franek said.
According to Franek, it would be a mistake to rule out private universities for this purpose based solely on cost.
When it comes to offering aid, private schools have more money to spend, and many schools dole out significant aid packages, often in the form of merit aid or “free money,” he said.
At the end of the day, “What matters most is not the sticker price, but the amount the family will (hopefully) have to pay based on the financial aid the student receives.”
