Are student loans worth it?

Are student loans a trap?

Lenders are fully aware that most 18-year-olds, fresh out of high school, haven’t mastered the complexities of finance. They hand us loan documents filled with fine print and legal jargon, and they’re not exactly eager to sit down and explain how we could save thousands in interest payments. Instead, they design repayment plans that maximize the amount we’ll pay over the years. And here’s the real kicker: you can’t even declare bankruptcy to wipe the slate clean.

Let’s take a look at whether student loans are actually a good investment—for you. Not for the economy. Not for your loved ones who can brag about your liberal arts degree. Not for maximizing earning potential by working a 9-to-5 for 30 years. You. Does this debt make sense for your life?

The Case for Student Loans

At its core, student loans are supposed to be a stepping stone to higher education—a ticket to a better future. The promise is that a college degree will boost your lifetime earnings enough to outweigh the debt you take on. And there’s substantial data to back this up.

According to the U.S. Bureau of Labor Statistics, as of 2020, the median weekly earnings for someone with a bachelor’s degree were $1,305, compared to $781 for someone with just a high school diploma. Over a 40-year career, that difference can amount to over $1 million in additional earnings. The Georgetown University Center on Education and the Workforce found that, on average, college graduates earn 84% more over their lifetimes than high school graduates.

Moreover, job security is higher. The unemployment rate for those with a bachelor’s degree was 5.5%, compared to 9% for high school graduates without any college education.

Sounds good so far.

The Debt Reality

But the plot thickens. The average U.S. student graduates with around $30,000 in debt, according to the Federal Reserve. For some—especially those attending private institutions or pursuing advanced degrees—that number can climb significantly higher.

Federal student loan interest rates for undergraduates hover around 3.73% (2021-2022).
Private loan interest rates can soar into the double digits depending on the lender and the borrower’s creditworthiness.
Repayment plans can stretch up to 25 years, especially with income-driven repayment.

That means you could end up paying back double or even triple what you originally borrowed, all while interest keeps accruing.

Tuition used to be so much cheaper, and, according to boomers, you could get a job just by walking up to the CEO, giving him a firm handshake, and asking him to take a chance on a hard worker.

The Risk of Not Finishing Your Degree

For every graduate landing their dream job, there are many others grappling with debt they can’t manage. This is especially true for those who attended expensive schools, didn’t complete their degrees, or entered lower-paying fields.

According to the National Center for Education Statistics, only about 62% of students who began seeking a bachelor’s degree at a four-year institution in 2013 completed it within six years.
That means a significant portion of students leave college with debt but without a degree—the worst of both worlds.

That debt can delay or derail major life milestones like buying a home, starting a family, or saving for retirement. The Federal Reserve reports that 20% of adults who attended college and still owe student loan debt are behind on their payments.

It’s a risk: you better be really good at school to maximize your chances with your degree. And even then, you might strike out because:

The economy sucked when you graduated.
The right job opening wasn’t posted.
The boss’s D-average kid got the job over you.

ROI Varies by Field of Study

The return on investment varies wildly depending on your major.

High-paying degrees in fields like engineering, computer science, or healthcare can make the debt worth it.

According to PayScale’s 2020-2021 College Salary Report, mid-career salaries for petroleum engineering, electrical engineering, and computer science often exceed $100,000 per year.

But if you’re passionate about lower-paying fields—like education, social work, or the arts—the financial burden can outweigh the benefits.

The National Association of Colleges and Employers reported that the average starting salary for education majors was around $38,000 in 2019—making it harder to manage loan repayments.

I mean, I studied philosophy and 99 out of 100 outcomes would have me still working in a restaurant.

The Broader Economic Impact

The ripple effects of massive student debt reach far beyond individual borrowers.

Consumer spending slows down, which can drag down the entire economy.
Areas with higher student debt see fewer small businesses (Federal Reserve Bank of New York).
Many millennials delay homeownership—by an average of seven years (National Association of Realtors).
The total U.S. student loan debt has surpassed $1.7 trillion (Federal Reserve, 2021)—more than credit card debt and auto loans combined.

The Biden administration announced loan forgiveness plans in 2022, but legal challenges have left their fate uncertain. We won’t go into that here because I don’t want to. Real vibe killer, you know?

Alternatives & Strategies

Until sweeping changes happen, what can we do?

Loan forgiveness programs exist (e.g., Public Service Loan Forgiveness), but low approval rates make them unreliable.
Community colleges & trade schools provide valuable education at a fraction of the cost.
Scholarships & grants help, but they require time-consuming applications.

Who the hell wants to spend hours writing an essay groveling for money?

Me. [points all around]

Final Verdict: Trap or Ticket?

So, are student loans a good investment?

It depends.

If you’re entering a high-demand field with strong earning potential, taking on some debt might make sense.
If your chosen career doesn’t pay much, or you’re not sure you’ll finish school, the risks increase.

Advocating for Change

Support policies to reduce tuition costs and increase financial transparency.
Push for reform to fix the broken loan system that traps borrowers in endless repayment.
Educate yourself—because the system isn’t looking out for you.

A study in the Journal of American College Health found that students with higher debt levels report increased stress and anxiety.

Not only do you leave college with a degree and debt, you can add a drinking problem and depression to that list.

Final Thought

Do your homework before paying for that four-year degree.

Understand the terms of your loans.
Explore scholarships, grants, and work-study programs.
Consider alternative education routes.

Financial literacy shouldn’t be a barrier to education, but in today’s landscape, being informed is your best defense.

In the end, student loans can either be a stepping stone or a stumbling block. They can help you reach your dreams—or hold you back from them.

The difference lies in how you navigate the system.

Is it too late to ask for a refund?

You can have my degree back.