Higher education is in the midst of a major transformation, and so is how students pay for it. Drawing on Ascent’s proprietary data and leading third-party research, The Future of Student Loans: 2025 Trend Report uncovers how today’s students are making financial decisions, what’s driving their stress, and the innovative ways they’re using scholarships, grants, and digital tools to chart smarter, more confident paths to graduation.

Financial Confidence Remains Limited:  

For many students, college isn’t just an academic challenge; it’s their first major financial one. Between managing tuition, rent, and daily expenses, students are being asked to make high-stakes decisions for the first time, often without the financial literacy or guidance to support them. This uncertainty affects everything from the schools they choose to the confidence with which they step into their careers. Students don’t just need funding; they need a financial playbook.

• Only 26.5% of students feel very confident managing their personal finances.
• 1 in 3 say financial concerns have a major influence on their academic or career decisions.
• 31% say better access to scholarship tools and guidance would help build financial confidence.
• Students are signaling a clear need: education about money and everyday finances is just as important as education funded by it.

Paying for Tuition Is the Top Concern: 

The cost of a degree continues to define and often limit students’ choices. With tuition rising faster than wages, students are getting increasingly resourceful, combining grants, scholarships, and side hustles to make it all work. But despite their creativity, the numbers make one thing clear: paying for college remains a heavy emotional and financial lift.

• Nearly half (49.2%) say paying tuition or fees is their biggest financial concern.
• 25.9% cite finding enough scholarship or aid as their next biggest challenge.
• 47% rely primarily on scholarships or grants to fund their education or manage debt. However, these funds are often limited, making it difficult for many students to cover their costs fully. In fact, just 0.1% of students receive full-tuition awards.
• In short, while the dream of higher education remains strong, the price tag attached to it continues to be students’ biggest barrier, both financially and emotionally.

First-Generation Students Face Higher Financial Stress: 

For first-generation students, the path to college often represents a family milestone, but also a heavier financial burden. Without the safety net of experience or inherited guidance, they’re navigating a system designed for those who already know the rules. Even with more grant support, many first-gen students still turn to loans and credit cards to bridge the gap.

• In Trellis’ 2023 Student Financial Wellness Survey, 38% of respondents identified as first-generation students (n=19,634). This includes 41% at two-year institutions and 35% at four-year institutions.
• 68% worry about paying for school, and 24% are unsure how they’ll afford their next semester.
• They’re more likely to receive grants (66% vs. 48%), but also more likely to take out loans (40% vs. 33%) or use credit cards for college costs (35% vs. 28%).
• The data highlight a persistent challenge: even with more grant support, first-generation students are still taking on more debt than their peers, reflecting the additional hurdles they face when navigating college finances without a family safety net.

Student Engagement With Financial Wellness Content Is High: 

Students are craving clarity, and they’re finding it in financial wellness content. As they move through the application process, many are actively seeking out education around repayment, budgeting, and long-term planning. The demand points to a new kind of student mindset: one that values proactive financial learning as much as academic success.

• 1 in 4 users (24%) who interact with Ascent chatbots during the application process seek out financial wellness (FinWell) content.
• Students are 3x more likely to explore FinWell content during the application process than from their student account homepage (24% vs. 7%). This indicates that students are curious and actively seeking to educate themselves before taking out a loan, and are more often thinking about repayment when they do.
• Repayment plans are the most explored topic, accounting for 35% of all engagement and climbing steadily.
• This surge in engagement shows that students want to borrow wisely, understand how loans work, see how repayment fits into their budgets, and grasp what borrowing means for their long-term financial well-being. Ideally, they are more likely to carry that awareness into their repayment plans.

Loan Requests Are Increasing, With Popular Majors Emerging: 

With college costs on the rise, student loan borrowing continues to increase. The story isn’t just about borrowing more, it’s about borrowing with purpose. Students are increasingly pursuing majors that align with stable, career-driven fields, signaling a pragmatic shift toward education as an investment in employability.

• The top five majors among approved borrowers are Nursing, Business, Biology, Psychology, and Mechanical Engineering.
• Students are making strategic choices and leaning into fields that promise stability, skill demand, and a clearer return on their educational investment.

Conclusion: The Path Forward

As the cost and complexity of higher education continue to rise, one thing is clear: today’s students are more resourceful, informed, and determined than ever. They’re seeking smarter, more sustainable ways to fund their education by leveraging digital tools, exploring scholarships, and redefining what financial wellness looks like.

Looking ahead, the next era of student finance will be defined by personalization and empowerment. Students want guidance that’s as dynamic as their goals. This means giving them real-time insights, proactive support, and funding models that evolve with their needs. The institutions, lenders, and leaders that step up to meet them with transparency, technology, and trust will not only help them reach graduation but also set the foundation for lifelong financial wellness and success.