– 67% of borrowers in default are Pell Grant recipients.
– 73% of borrowers associate student debt with stress, anxiety, and depression.
– 53% of borrowers with BAs needed to delay a major life event because of loans.

Since CARA was founded in 2011, we have been having conversations with young people and those who work with them about paying for college, including taking out student loans. During this time, a student loan crisis has deepened, leading us to question how much we can tell students is “safe” to borrow in 2026.

In order to update our guidance, we interviewed counselors across New York City (many of whom are also first-gen to college) not just about what they’re seeing in their work with students, but also how their own educational debt has affected them years after graduation. Alongside a review of the history of loans and academic literature on the outcomes of student debt, this helped us develop a deeper understanding of how student loans impact the financial wellness of borrowers and the ways in which navigating repayment affects their life decisions for many years after entering college.

We used this understanding to revise our best practices in advising students around paying for college, including:

• Updating our guidance on the maximum amount of loans that low-income students should consider;
• Laying out best practices for having early, repeated, and age-appropriate conversations with young people about loans;
• Sharing interactive, inquiry-based lessons that educators can use to make loan decisions more real for high school students.

We believe that many of these will be applicable for low-income students far beyond NYC.

Read the report for our full findings and recommendations, as well as with lessons and resources to utilize in conversations with young people about paying for postsecondary education.