{"id":12203,"date":"2026-05-06T14:32:39","date_gmt":"2026-05-06T21:32:39","guid":{"rendered":"https:\/\/scholarshipowl.com\/blog\/?p=12203"},"modified":"2026-05-06T14:32:39","modified_gmt":"2026-05-06T21:32:39","slug":"the-road-to-repayment-survey-reveals-student-debt-expectations-vs-reality-in-2026","status":"publish","type":"post","link":"https:\/\/scholarshipowl.com\/blog\/gen-z-research\/the-road-to-repayment-survey-reveals-student-debt-expectations-vs-reality-in-2026\/","title":{"rendered":"The Road to Repayment: Survey Reveals Student Debt Expectations vs. Reality in 2026"},"content":{"rendered":"

As the cost of higher education continues to climb, student loan debt remains one of the most significant financial hurdles for Gen Z. In fact, over 43 million Americans currently have student debt, with over 7 million of those borrowers in default. At ScholarshipOwl<\/a>, we wanted to better understand student debt expectations vs. reality, and how students are planning for their financial futures amidst this debt crisis.<\/p>\n

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Our latest survey, the\u00a0“Road to Student Loan Repayment,” gathered insights from over 30,000 students. The results paint a picture of a generation that is acutely aware of the financial burden ahead but is also becoming increasingly strategic about how to manage it.<\/p>\n

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Who Participated in the Survey?<\/h2>\n

In April 2026, ScholarshipOwl<\/a> surveyed 32,242 high school and college students on the ScholarshipOwl scholarship platform to find out more about how Gen Z students are paying for college.<\/p>\n

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Among the respondents, 61% were female, 37% were male, and 1% identified themselves as a different gender identity or preferred not to respond to the question. Nearly half (48%) were Caucasian, 21% were Black, 17% were Hispanic\/Latino, 7% were Asian\/Pacific Islander, 1% were American Indian\/Native American and 6% selected \u201cother\u201d or preferred not to respond to the question.<\/p>\n

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More than half (55%) of the respondents were high school students, with the overwhelming majority high school seniors; nearly one-third (31%) were college undergraduate students, primarily college freshmen and college sophomores; 9% were graduate students and 5% identified themselves as adult\/non-traditional students.<\/p>\n

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What We Learned<\/h2>\n

The Heavy Burden of Borrowing<\/h3>\n

The reality of student loans is stark: a significant portion of students expect to graduate with substantial debt. Our survey found that\u00a042% of students estimate they will borrow more than $50,000\u00a0to complete their college education. Even more concerning,\u00a017% expect their total borrowing to exceed $100,000.<\/p>\n

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Only about\u00a08% of respondents\u00a0stated they won\u2019t be borrowing any money for college, highlighting how rare a “debt-free” degree has become in today’s economy.<\/p>\n

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\"Estimated<\/p>\n

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Repayment of Student Debt: Expectations vs. Reality<\/h3>\n

The survey data reveals a significant gap between how quickly students\u00a0expect<\/i>\u00a0to pay off their loans and the\u00a0reality<\/i> of the typical repayment journey. Nearly two-thirds (62%) of the survey respondents expect to repay their student loans in 15 years or less, with over 37% believing they can achieve that within 10 years; however, the reality is that it takes the average borrower 20 years to pay off their student debt. Only one-fifth (20%) of respondents expect that it will take that long to repay their loans. And a substantial portion of respondents (12%) expect to be debt-free in less than 5 years, an ambitious goal that often conflicts with entry-level salaries and the impact of compounding\u00a0 interest.<\/p>\n

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\"Estimated<\/p>\n

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The contrast is even more stark when viewed in the light of the One Big Beautiful Bill Act (OBBBA)<\/a>, which will be fully implemented on July 01, 2026. While existing repayment plans often enable students to access loan forgiveness after 20 years of payments, the Act’s new loan repayment plans extend that to requiring 25\u201330 years for loan forgiveness.<\/p>\n

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The bottom line? Many of today’s loan borrowers will still be paying for their degrees well into their 40s and 50s.<\/p>\n

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Proactive Repayment Strategies<\/h3>\n

Despite the daunting numbers, students are not just waiting for a miracle. They are actively planning how to tackle their debt more quickly and easily. The top strategies identified by our respondents include:<\/p>\n

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