The share of resident students graduating with federal student loan debt has dropped 8 percentage points among in-state undergraduates since 2016-17
Photo courtesy of UNC
UNC System students are graduating with less debt
In-state students at North Carolina’s public universities are graduating with less debt today than they did before the pandemic.
As student loan payments resume in October nationally, the University of North Carolina System reports an 8 percentage point drop in the number of in-state undergraduates who carry federal student loan debt at graduation. In 2016-17, 63% of in-state undergraduates held federal student loan debt at graduation. That number dropped to 55% for those who graduated in 2022.
The Systemwide average student debt is also dropping among resident undergraduate borrowers. In 2019-20, in-state student borrowers graduated with an average debt of $22,270. In 2021-22, the average debt declined to $20,574.
“A college degree yields many economic and social benefits to our graduates,” said University of North Carolina System President Peter Hans. “But those benefits are far more apparent if students are able to graduate on time and with less debt. Our universities focus on providing a high-quality, affordable
Lower student debt is a goal in the UNC System’s Strategic Plan for 2022-27. The plan outlines specific targets related to access, affordability, efficiency, economic impact and community engagement, and excellent and diverse institutions. By 2027, the plan calls for the System to limit average cumulative federal student loan debt at graduation for first-time freshmen to the rate of inflation each year.
In September, Hans announced his recommendation that in-state tuition be held flat for the eighth year in a row. That’s one way to keep debt in check, he said.
“Low tuition is at the heart of our compact with the citizens of North Carolina,” Hans said in his address to the University of North Carolina Board of Governors. “We can only be the University of the People if we offer an education the people of this state can afford.”
The Board of Governors will vote on tuition and fees in early 2024.