The Student Debt Reality
Total U.S. debt is $1.7 trillion. The average 2024 grad owes ~$37,000. In CA, average debt at graduation from a CSU is around $24,000 — and UC grads average $21,900. Understanding what you're borrowing is critical.
Average CA CSU Debt at Graduation
$24,000
Monthly payment: ~$250/mo on a 10-year standard plan.
Types of Student Loans
Federal Direct Subsidized Loans (government pays interest while you're in school), Federal Direct Unsubsidized Loans (interest accrues immediately), PLUS Loans (higher rates, for grad students or parents), Private Loans (highest rates, fewest protections — avoid if possible).
How $24,000 Grows Without Payments
$24,000 loan — how balance grows with no payments (6.5% rate)
- Subsidized (no growth)
- Unsubsidized (grows!)
Key Strategies
- File your every year — free money first, then , then loans
- Only borrow what you need — each $1,000 borrowed = ~$10.50/mo for 10 years
- Pay interest while in school if possible — prevents ballooning
- Income-Driven Repayment (IDR) caps payments at 5-10% of discretionary income
- Public Service Loan Forgiveness — 10 years of public service = debt forgiven