CPE: 6 out of 10 Kentucky college students are graduating debt-free

January 29, 2026

Six out of 10 Kentucky undergraduate students are now graduating debt-free, according to a new report by the Kentucky Council on Postsecondary Education (CPE). This is up from 2019-20, when four out of 10 students were graduating debt-free. The percentage of debt-free graduates from community and technical colleges is now 74%, and 46% for public university graduates.

“With the national media focused on ballooning student loan debt and rising tuition, I’m extremely proud that Kentucky has a different story to tell,” said Dr. Aaron Thompson, president of CPE. “Significant increases in state and institutional grants and scholarships over the last five years made college affordable for thousands of Kentuckians, to the extent that many avoided student loans altogether.”

Not only are more students graduating debt-free, but the report also shows that average loan balances are decreasing. In 2024-25, the most recent year available, the average borrower at KCTCS owed $13,739 at graduation (down from $14,167 five years ago), while the average public university graduate (baccalaureate only) owed $32,564 (down from $35,100 over the same period).

“There are several probable reasons for these declines, in addition to increased aid,” said Dr. Chris Ledford, CPE’s director of data and advanced analytics and lead author of the report. “More students are taking dual credit in high school, which is shortening their time to degree and overall costs. Also, the state and institutions have stepped up financial literacy efforts, which help students and families learn about budgeting and responsible borrowing.”

Futuriti.org, developed by CPE and the Kentucky Center for Statistics (KYSTATS), is one such resource. The website helps families estimate college costs at Kentucky institutions and make responsible financial decisions. On the site, students can view the average price of different degree or credential programs in Kentucky and search for available financial aid.

The debt report examines the average loan balance of low-income, in-state and out-of-state students. Typically, out-of-state students carry the largest loan balances, followed by resident and then low-income students. Average loan amounts have declined across all groups—even for students from low-income backgrounds.

The full report can be accessed on CPE's website.