UNDERGRADUATE STUDENT DEBT LEVELS IN KENTUCKY - Five-Year Trends for Undergraduate Degree and Credential Completers at Public Universities and KCTCS - JANUARY 2026

Oct 15, 2026

Examines college affordability in Kentucky through undergraduate student loan debt at public postsecondary institutions, focusing on two-year and four-year degree and credential completers and their completion outcomes over the past five years. Tracks the share graduating with zero loan debt and changes in average borrowed loan balances, showing declines in debt levels alongside rising debt-free graduation rates. Highlights drivers including increased financial aid and grants, moderated tuition growth, expanded dual credit that reduces time to degree, and strengthened financial literacy efforts.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages25

Reading Time1 h 3 min

AccessFree to download

From the President

Executive Summary

Statewide Trends

KCTCS Trends

Four-Year Trends

Average Debt Burden

Contributing Factors

Conclusion

About the Council

UNDERGRADUATE STUDENT DEBT LEVELS IN KENTUCKY Five-Year Trends for Undergraduate Degree and Credential Completers at Public Universities and KCTCS JANUARY 2026 Table of Contents From the President 1 Executive Summary 2 Statewide Trends 4 Figure 1. Percent of all undergraduate completers who graduate debt-free 5 Figure 2. Average loan balance of all public undergraduate borrowers 6 KCTCS Trends 7 Figure 3. Percent of KCTCS completers who graduate debt-free 8 Figure 4. Average loan balance of all KCTCS borrowers 9 Four-Year Trends 10 Figure 5. Percent of public university borrowers who graduate debt-free 11 Figure 6. Average loan balance of public university undergraduate borrowers 12 Average Debt Burden 13 Figure 7. Average debt burden across all undergraduate completers 14 Figure 8. Average debt burden across all KCTCS completers 15 Figure 9. Average debt burden across all public university completers 16 Contributing Factors 17 Factors Contributing to Student Debt Declines 18 Financial Aid Trends 18 Tuition Rate Management 19 Decreased Time to Degree 20 Financial Literacy Initiatives 20 Conclusion 20 About the Council 21 CPE Data and Advanced Analytics Team 22 From the President CPE’s latest report examines college aﬀordability through the lens of student loan debt. It examines both the share of students graduating with loans and the average balance owed at credential completion. While other factors, such as net price and ﬁnancial aid availability, aﬀectaﬀordability, unmanageable debt can curtail graduates’ability to meet theirﬁnancial obligations for years to come. Fortunately, the news is positive. Kentucky’s public higher education system has signiﬁcantly lowered debt levels among undergraduate completers over the last ﬁve years. Nearly two-thirds (60. 6%) of students graduate from KCTCS and public universities with no loan debt. Among those who do borrow, the average loan balance has fallen 10.7%—from $28, 897 in 2019-20 to $25, 799 in 2024-25. This is not occurring because students are wealthier; enrollment of low-income students during the same period increased 7.9% . Rather, several statewide and campus initiatives are contributing to this trend. CPE and state policymakers are moderating tuition increases and investing more heavily in grants and scholarships. Institutions, especially, are oﬀering more ﬁnancial aid and betterﬁnancial literacy instruction. The tremendous growth in dual credit is shortening time-to-degree, which lowers the overall cost of a postsecondary credential. Together, these eﬀorts are substantially reducing student debt levels. I’m hopeful that this report reassures Kentucky families that a quality postsecondary education remains within reach. Kentucky Council on Postsecondary Education | 1 Executive Summary This report illustrates Kentucky's progress in reducing student loan debt among undergraduate degree and credential completers at public postsecondary institutions over the last ﬁve years. Not only are more students graduating debt-free, but average loan balances are also decreasing. Percentage of graduates from Kentucky public institutions with zero debt All Graduates (KCTCS and Four-Year) 46.7% 2019-2020 60.6% 2024-2025 Up 14 .0 percentage points KCTCS Graduates 60. 1% 2019-2020 73.5% 2024-2025 Up 13 .4 percentage points Four-Year Public University Graduates 37.9% 2019-2020 45.8% 2024-2025 Up 7 .9 percentage points Kentucky Council on Postsecondary Education | 2 Executive Summary (continued) The average loan balance accrued at graduation is declining across all postsecondary sectors. Increased investment in student ﬁnancial aid, reduced time to degree (due in part to a rise in dual credit course completion) , and enhanced ﬁnancial literacy eﬀorts are contributing to this trend. Average loan balance of public undergraduate borrowers at completion All borrowers (KCTCS and Fo

FAQs

What outcomes does the report measure for Kentucky undergraduate completers?

It measures the share of students graduating with no loan debt and the average loan balance owed at credential completion across public institutions.

How have debt-free graduation rates changed over the last five years?

The report shows a substantial increase in the percentage of graduates who complete with zero debt, reaching 60.6% in 2024-25 for all Kentucky undergraduates.

What factors does the report cite for declining student debt levels?

It attributes reductions to greater investment in grants and scholarships, moderated tuition rate increases, expanded financial aid and financial literacy initiatives, and shorter time to degree supported by dual credit growth.

Oct 15, 2026

Uploaded by Aria Callaghan