How Extending College Over 4 Years Costs a Ton of Money

"Only 44% of college students graduate within four years, and over 50% take 5 years to finish, according to the National Center for Education Statistics (NCES). That single extra year could be the difference between manageable debt and a balance that follows you into your 30s or beyond."

"A typical high school graduate entering a 4-year public college in fall 2026 could take on $43,500 in student loans, based on NerdWallet's analysis of NCES data. That projection assumes a 5-year graduation timeline, because that is what most students actually do. An extra year means another round of tuition, another lease, another 12 months of food, transportation, and books. Every dollar you borrow compounds while you are in school for unsubsidized loans, then keeps compounding after graduation until you pay it off."

"Before taking any loans, exhaust other funding sources including "scholarships, grants, part-time work, parental help," the hosts said. When loans become necessary, "max out federal loans before turning to private" ones. Federal loans offer more flexible payment options and potential forgiveness programs."

"Federal loans remain the better option. They carry lower rates, more flexible repayment plans, and eligibility for Public Service Loan Forgiveness. Private loans, originated by banks, typically have higher interest rates, less flexible payment plans, and offer no PSLF access. Neither type is generally dischargeable in bankruptcy."

Only 44% of college students graduate within four years, while over half take five years to finish. An extra year can add tuition, housing, food, transportation, and books, and it increases interest accumulation on unsubsidized loans during school and after graduation. A typical high school graduate entering a four-year public college in fall 2026 could borrow about $43,500, assuming a five-year timeline. Before borrowing, scholarships, grants, part-time work, and parental help should be used. When loans are needed, federal loans should be maximized before private loans because federal loans have lower rates, more flexible repayment options, and eligibility for Public Service Loan Forgiveness. Private loans usually have higher rates, fewer repayment options, and no PSLF access.

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