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The cost of college has steadily increased over the last 30 years. Over that period, tuition at public four-year colleges increased from $4,160 to $10,740, while tuition at private nonprofit institutions increased from $19,360 to $38,070 (inflation-adjusted). As costs have risen, so has the need for student loans and other forms of financial aid.
Today, more than half of students leave school with debt. This graph shows the typical student’s borrowing amount, the most popular loan kinds, and the repayment schedule for those loans.
Millions of Americans now struggle financially to pay off their student loans, which makes it difficult for them to save for retirement, buy a house, and achieve other goals in life. The average student loan debt has increased dramatically along with the rising cost of education, leaving many graduates feeling overwhelmed and apprehensive about their financial future.
A Snapshot of the Average American’s Student Loan Debt:
- Total student loan debt: A staggering $1.75 trillion, encompassing both federal and private loans.
- Average individual debt: $28,950, representing a significant financial obligation for recent graduates.
- Federal vs. private loans: Approximately 92% of student debt is comprised of federal loans, with the remaining 8% attributed to private lenders.
- Percentage of students with debt: Over half of students graduating from public four-year institutions and 57% of those graduating from private nonprofit institutions carry student loan debt.
State-by-State Breakdown of Average Student Loan Debt:
The average student loan debt varies considerably across states with some graduates facing significantly higher balances than others. Here’s a glimpse at the states with the highest and lowest average student loan debt:
Highest Debt States:
- New Hampshire: $39,928
- Delaware: $39,705
- Pennsylvania: $39,375
- Rhode Island: $36,791
- Connecticut: $35,853
Lowest Debt States:
- Utah: $18,344
- New Mexico: $20,868
- California: $21,125
- Nevada: $21,357
- Wyoming: $23,510
Average Student Loan Debt by Age:
Younger adults are typically the ones with student loan debt, with average balances lowest among those under 25. But as people age, the average balance rises, with people over 62 having the highest debt.
Average Student Loan Debt by Race and Gender:
While most college students take out student loans, women and people of color are more likely to have student loan debt and higher balances compared to their white male counterparts.
Federal Student Loan Portfolio:
Federal student loans constitute the majority of American education debt, accounting for approximately 92% of all outstanding student loans. The federal student loan portfolio currently totals over $1.6 trillion, owed by roughly 43 million borrowers.
Private Student Loan Portfolio:
Less than half of all student loan debt is made up of private loans, which account for about 7 6% of all education debt. The outstanding private student loan debt currently stands at $131 billion.
Student Loan Repayment Statistics:
The Covid-19 pandemic significantly impacted student loan repayments. Federal student loan payments have been paused nationwide since March 2020, with the majority of federal loans currently in forbearance. However, nearly 37 million student loan borrowers will need to resume their monthly payments in October 2023.
Repayment Programs:
The federal student loan system offers a variety of repayment options for borrowers to choose from, including income-driven repayment plans and standard repayment plans. Private student loans typically have fewer repayment options, but many private lenders offer interest-only payments while in school or the ability to defer payments until after graduation.
Delinquencies and Defaults:
Approximately 5% of student debt was at least 90 days delinquent or in default in the fourth quarter of 2021. However, this number is artificially low due to the Covid-19 forbearance. Once regular payments resume, a portion of the paused loans will likely be reported as defaulted.
Student Loan Forgiveness:
As of September 2021, over 10,776 borrowers have successfully had their federal loans forgiven through the Public Service Loan Forgiveness (PSLF) program. More than $1 billion has been forgiven, with the average applicant discharging approximately $95,000 in debt.
The Impact of Student Loan Debt on the Economy:
Student loan debt has a substantial impact on the economy. Outstanding loan debt can prevent individuals from saving for retirement and pursuing other major expenses, such as purchasing a home or starting a business. This can have a ripple effect on the economy as a whole.
Student loan debt has become a significant financial burden for millions of Americans, with the average individual debt exceeding $28,000. The rising cost of college and the increasing reliance on student loans have created a complex financial landscape for recent graduates. Understanding the different aspects of student loan debt, including average balances, repayment options, and forgiveness programs, is crucial for individuals navigating this complex financial landscape.
Average Student Loan Debt by State
The national average balance of federal student loan borrowers is $35,210. The five states and territories with the highest balance are as follows:
1. Washington, D.C. $54,708.52
2. Maryland. $42,350.91
3. Georgia. $40,268.87
4. Virginia. $38,251.37
5. Florida. $37,709.72
| State/territory | Average loan balance |
|---|---|
| Alabama | $35,848.13 |
| Alaska | $34,055.73 |
| Arizona | $34,693.64 |
| Arkansas | $32,188.84 |
| California | $36,755.80 |
| Colorado | $35,932.11 |
| Connecticut | $34,713.76 |
| Delaware | $36,135.11 |
| District of Columbia | $54,708.52 |
| Florida | $37,709.72 |
| Georgia | $40,268.87 |
| Hawaii | $36,238 |
| Idaho | $32,228 |
| Illinois | $37,233 |
| Indiana | $31,483 |
| Iowa | $29,350 |
| Kansas | $31,502 |
| Kentucky | $31,685.24 |
| Louisiana | $33,376.54 |
| Maine | $32,679.74 |
| Maryland | $42,350.91 |
| Massachusetts | $33,710.38 |
| Michigan | $35,253.08 |
| Minnesota | $32,513.98 |
| Mississippi | $35,381.31 |
| Missouri | $34,412.96 |
| Montana | $32,414.91 |
| Nebraska | $30,978.93 |
| Nevada | $33,663.96 |
| New Hampshire | $33,119.66 |
| New Jersey | $35,202.31 |
| New Mexico | $33,550.79 |
| New York | $37,196.72 |
| North Carolina | $36,632.59 |
| North Dakota | $27,874.56 |
| Ohio | $33,490.59 |
| Oklahoma | $31,011.14 |
| Oregon | $36,230.49 |
| Other | $44,150.11 |
| Pennsylvania | $34,535.56 |
| Puerto Rico | $29,480.74 |
| Rhode Island | $31,779.66 |
| South Carolina | $36,729.04 |
| South Dakota | $29,798.42 |
| Tennessee | $35,431.18 |
| Texas | $32,285.33 |
| Utah | $31,861.93 |
| Vermont | $37,037.04 |
| Virginia | $38,251.37 |
| Washington | $35,223.26 |
| West Virginia | $31,121.28 |
| Wisconsin | $30,777.92 |
| Wyoming | $30,360.53 |
| Source: Direct Portfolio Data by Location Q1 2023 |
Average Student Loan Debt by Race and Gender
Despite the fact that the majority of college students take out student loans, women and people of color are more likely than white males to have student loan debt, and to have higher balances.
What Everyone’s Getting Wrong About Student Loans
FAQ
What is the average student debt in America?
Is $100,000 in student debt a lot?
How many Americans have over $1000000 in student debt?
How long does it take to pay off 50000 in student loans?
|
Total Student Loan Debt
|
Repayment Period
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$10,000-$20,000
|
15 years
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$20,000-$40,000
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20 years
|
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$40,000-$60,000
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25 years
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Greater than $60,000
|
30 years
|
What is the average student loan debt?
The average student debt in the United States is $32,731, while the median student loan debt amount is $17,000. With the rising costs of tuition and total student loan debt up around 302% since 2004, we decided to break down the data to get a better understanding of the different levels of student loan debt across different types of borrowers.
What is the average student loan debt in 2023?
The average student loan debt for borrowers in 2023 is $37,338 in federal student loans and $54,921 in private student loans. Federal student loans come with a variety of borrower protections, such as access to federal deferment and forbearance options, income-driven repayment plans and student loan forgiveness programs.
Which states have the highest student loan debt?
Washington, D.C. residents have the highest average federal student loan debt at $55,204, while North Dakotans have the lowest, with just $28,037. Here’s a breakdown of the average student loan debt for each state according to federal data: Here’s a breakdown of the average student loan debt by age, education level, gender and race.
How much is student debt in the United States?
Total student debt in the U.S. has nearly tripled in the past 15 years, from more than $619 billion in quarter one of 2008 to more than $1.77 trillion in quarter one of 2023, according to the Federal Reserve.