New CPE report shows undergraduate debt levels trending downward

March 27, 2025

According to a new report by the Kentucky Council on Postsecondary Education (CPE), the average student loan balance of public two- and four-year graduates has fallen 32.9% over the last five years. Additionally, nearly 60% of undergraduates who completed a degree or certificate in Kentucky in 2023-24 did so without accruing student loan debt.

The average loan amount at graduation last academic year was $10,688, a decrease of $5,237 since 2018-19. This amount represents the average of all undergraduates at KCTCS and public universities who finished school with a certificate or degree in 2023-24, including those with zero debt. When students with no debt were excluded from the calculation, the average rose to $26,115, still 10% lower than in 2018-19.

“This report is good news for Kentucky college students and reflects the tremendous efforts campuses are making to keep higher education accessible and affordable, despite inflationary pressures,” said Dr. Aaron Thompson, CPE president. “While headlines warn of a national student loan debt crisis, balances among Kentucky students have been falling for a decade, and especially over the last five years.”

Chris Ledford, director of data and advanced analytics at CPE and the report’s lead author, attributes this trend to several factors. “Because state and institutional financial aid has risen so significantly, students and parents are borrowing less, and many leave college debt-free,” Ledford said. “CPE has capped tuition increases since 2010, and campuses are increasing financial literacy programming, which teaches students and parents about responsible borrowing. We’re also seeing students graduate in less time, which lowers their overall cost.”

The report compares average loan amounts for KCTCS and public university completers, as well as for low-income, underrepresented, in-state and out-of-state students. Excluding students with no debt, the average bachelor’s degree recipient owes $32,996 upon completion, compared to $13,629 for a KCTCS graduate. Typically, out-of-state students carry the largest loan balances, followed by underrepresented and low-income students.

The full report can be accessed at https://cpe.ky.gov/data/reports/2025debtreport.pdf.