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According to the latest figures from the Federal Reserve, 30% of U.S. adults had student loan debt upon leaving school.

Student loan debt is a significant financial burden for many Americans, impacting their ability to save, invest, and achieve financial milestones. As higher education costs continue to rise, more students and families rely on loans to fund their education.

Understanding the scope and scale of student loan debt in the United States is crucial for grasping its economic and social implications. Keep reading to learn how many Americans have student loan debt, the average amount borrowed, student loan debt by demographics, and more.

How Many People in the USA Have Student Loans?

The total student loan debt crisis amounts to $1.74 trillion in unpaid student loans as of the second quarter of 2024. This outstanding balance is spread among 43.2 million U.S. borrowers.

Federal student loans account for 91.2% of all U.S. student loan debt, according to the Education Data Initiative. However, U.S. adults are also burdened by private student loans.

As of Q3 2023, Americans have amassed a total of $130.28 billion in private student loans — accounting for 7.5% of outstanding student loans in the country.

Recommended: The Impact of Student Loan Debt on the Economy

Who Is the Typical Borrower?

The College Board’s Trends in College Pricing and Student Aid 2023 report found that the average four-year, public bachelor’s degree graduate left school with $27,400 in student debt. Bachelor’s recipients from private nonprofit institutions left school with an average of $33,600 in student debt.

Student Loan Debt by Age

U.S. adults ages 35 to 49 have a total aggregated balance of $635.7 billion in federal loans across 14.7 million borrowers. On average, a borrower in this age group has a student debt balance of $43,200, according to College Board.

The next-highest total balance, at $497.5 billion, falls on borrowers ages 25 to 34. The 15.1 million borrowers in this age group have an average loan balance of $32,900.

Borrowers with the highest average balance ($45,700) are those who are 50 to 61 years — this group accounts for 6.5 million borrowers in the U.S.

Student Loan Debt by Race and Gender

According to the Education Data Initiative, 64% of the total U.S. student loan debt is held by women.

Men borrow an average of $29,862 in student loans. By contrast, each woman carries an average of over $30,000 in student debt.

Black women face the greatest hurdle when it comes to student loan debt. According to AAUW, Black or African American women carry the highest cumulative student debt by race and ethnicity at $37,558. This figure includes the principal amount and student loan interest rate charges.

Student Loan Borrowers by Debt Size

According to the U.S. Department of Education, most student loan borrowers (9.9 million as of 2023) owe between $20,000 and $40,000. Close to half of all borrowers (42%) owe between $10,000 and $40,000, and only one million borrowers have student debt totaling $200,000 or more.

Recommended: What Is the Cost of Attendance in College?

How Many People Have Student Loans by Demographic?

According to the Education Data Initiative, middle-income students are most likely to take out student loans. For students living on campus, 63.6% used federal student loans, compared to 39.7% of students who lived with their parents.

Among married undergraduates, 52% accepted federal loans. 54.1% of independent undergraduate students relied on federal student loans to help fund their education.

Recommended: Examining the Different Types of Student Loans

What Percentage of College Students Take Out Student Loans?

The percentage of students who borrow student loans vary based on factors like degree type and institution.

According to the Education Data Initiative, 31.5% of undergraduate students accepted student loans from the federal student loan program.

About 52% of bachelor-seeking students attending a private nonprofit received federal student loans, while 49% of bachelor’s students enrolled at a public college received federal loan aid.

Among master’s degree students, 53.6% who attended a private nonprofit school received federal aid, compared to 52.5% who attended a public institution.

Finally, 79.5% of students pursuing a professional doctorate degree at a private nonprofit received student loans. Of those who attended a public college, 31% of doctoral candidates have student loan debt.

Recommended: How to Pay for College

Total Owed by Americans on Student Loans?

Collectively, Americans have an outstanding student loan balance of $1.74 trillion in total. Private student loans makeup $130.28 billion of that, and the rest is federal student loans.

The Takeaway

Americans are carrying a significant student debt burden after leaving school. New and currently enrolled college students will likely see continued rising education costs.

Despite these figures, one of the benefits of student loans is that they can provide access to college for students who might otherwise not be able to finance their education. To pay for college, students can turn to cash savings, scholarships, grants, and federal and private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Who holds the majority of student debt?

According to the College Board, borrowers ages 35 to 49 hold the majority of outstanding federal student debt at $635.7 billion, with an average balance of $43,200 per borrower.

What is the average student debt in the U.S.?

According to the Education Data Initiative, the average federal student loan debt as of 2024 is $37,843 per borrower. Counting private student loans, that number is $40,681 per borrower.

What is the total amount of student debt owed by Americans?

Americans owe $1.74 trillion in federal and private student loans as of 2024.

How do you get rid of student loan debt?

To get rid of student loan debt, you can make consistent payments, consider refinancing for better rates, apply for income-driven repayment plans, or seek loan forgiveness programs if eligible. Strategies like budgeting and making extra payments can help accelerate debt repayment and reduce the total interest paid.

What happens to student loan debt when you die?

When a borrower dies, federal student loan debt is typically discharged and does not need to be repaid. For private student loans, policies vary by lender; some may discharge the debt, while others may require repayment from the borrower’s estate or a cosigner if one exists.

How does student loan debt affect the economy?

Student loan debt affects the economy by reducing borrowers’ purchasing power, delaying homeownership, and impacting savings and retirement plans. High debt levels can limit consumer spending and hinder economic growth. Additionally, it may discourage potential students from pursuing higher education, affecting workforce skills and overall economic productivity.

Photo credit: iStock/Prostock-Studio

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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Car sales professionals make an average of $103,042 a year, according to Salary.com. While that’s more than what the average American worker earns annually, the job often requires long hours and your income may depend on how many cars you sell.

Let’s dive into what car salesmen do and how much they can make.

What Are Car Salesmen?

Car salespeople help customers shop for cars. Typical duties include answering questions about the cars on the lot, arranging test drives, and explaining financing options, warranties, and specifications.

Being able to build relationships with customers and close deals can help you succeed as a car salesman. Since car salespeople work directly with customers, the job may not be the best fit for introverts.


💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

How Much Do Starting Car Salesmen Make a Year?

The average salary for entry-level car sales positions in the United States is $38,680 per year, according to ZipRecruiter data. The pay for entry-level jobs in car sales will likely differ based on the dealership’s size, location, and car brand.

While some employers pay a base wage, others offer commission-based pay. Base wages tend to provide a more consistent monthly income, usually between $2,000 and $4,000. With commission-based compensation, you may earn a portion of each sale, typically between 20% and 30%.

What Is the Average Salary for a Car Salesman?

If you’re looking to enter the field, you may wonder, how much does a car salesman make a year?

As mentioned above, the average annual salary for a car salesman is a competitive $103,042, per Salary.com, though pay can range between $88,987 and $119,501. High-achieving salespeople may make more than six figures, particularly if they are employed by luxury car dealerships or in regions with wealthy buyer demographics.

Commission-based arrangements are also a major factor in determining overall income.

Recommended: What Trade Makes the Most Money?

What Is the Average Car Salesman Salary by State for 2024?

A car salesman may not be the highest-paying job in most states, but it can provide a good living. This is especially true if you happen to work in a state like California, New Jersey, or Alaska, where the position tends to pay more. Let’s see how salaries in 2024 vary by state.

Source: Salary.com

Car Salesman Job Considerations for Pay and Benefits

Flexible schedules and possible commissions and bonuses are some attractive parts of being a car salesman. Plus, dealerships might provide extra incentives, such bonuses for hitting or exceeding sales goals, corporate cars, and expense reimbursements. Retirement plans, health insurance, and employee car discounts may also be included in the benefits package.

Recommended: Work-From-Home Jobs for Retirees

Pros and Cons of a Car Salesman Salary

As with any profession, there are advantages and disadvantages of working as a car salesman.

Pros:

•   Performance-driven earnings. Commission-based pay can boost your income, especially during strong sales periods.

•   Flexibility. Compared to standard 9–5 jobs, the position may offer flexibility in terms of work hours.

•   Career advancement. A successful car sales career can lead to managerial roles and a path for professional advancement within the dealership.

•   Diverse work environment. Helping customers find a car that fits their needs and budget can be professionally satisfying.

•   Incentives and perks. Dealerships often provide extra bonuses and perks, such car discounts for staff members or opportunities for career advancement.

Cons:

•   Income volatility. If you earn a commission, your earnings could decrease during slow times.

•   Pressure to perform. Reaching sales goals is essential, and the stress of closing deals might lower your level of job satisfaction.

•   Long hours. In order to accommodate consumers, you’ll likely need to work weekends and evenings.

•   Customer relations. Resolving complaints and interacting with a variety of client personalities can be difficult.


💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

The Takeaway

How much does a car salesman make? These professionals have the potential to earn $100,000 or more a year, especially if they can earn a commission based on their sales. They also have the chance to advance their careers and gain a variety of work experiences. That said, the job often requires long hours, income may not be steady, and there’s often a pressure to hit sales goals.

Whatever type of job you pursue, you’ll want to make sure your earnings can cover your everyday living expenses. Establishing a budget — and using online tools to help monitor spending — can help you make progress toward your financial goals.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

With SoFi, you can keep tabs on how your money comes and goes.

FAQ

Can you make $100k a year as a car salesman?

Yes, it is possible to make $100,000 or more as a car salesman. Your salary may depend on your location, base pay, the car brand being sold and how many cars you sell each month.

Do people like being a car salesman?

Some people love being a car salesman, but the job is not a good fit for everyone. Those who enjoy making sales and building customer relationships may enjoy a career as a car salesman.

Is it hard to get hired as a car salesman?

The difficulty of getting hired as a car salesman depends on factors such as the dealership, car brand, location, and your experience. If you’re a people person, willing to put in time, and eager to make sales, you can likely find a position at a dealership.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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When paying back your student loans, certain repayment strategies require a 10-day payoff letter. This is a document or statement that you can obtain through your original lender. It has the final loan amount needed to fully pay off your loan at a given time, and how to make the final payment and close the account.

Your 10-day payoff amount is typically more than just your current loan balance. For this reason, getting a 10-day loan payoff statement is the best way to find out how much you need to pay to fully satisfy the loan, including all accrued interest.

You typically need a 10-day payoff statement if you want to pay off your loan early or refinance your student loans. Here’s how to get it, what it contains, and other times when it might be required.

What Is a 10-Day Payoff for Student Loans?

Even if you understand the basics of student loans, you might not be clear on what a 10-day payoff letter is and why you would ever need one.

Used with many types of loans, a 10-day payoff statement tells you the amount you owe toward your loan in order for the loan to be closed and marked as “paid in full.”

A payoff statement is not the same thing at your current loan balance. Since interest is still charged on the loan in the days leading up to the actual payoff date, your lender will add 10 days’ worth of interest to your final payoff amount. Lenders can also calculate other time frames, like a 15- or 30-day payoff amount, if needed.

Depending on whether you have federal or private loans, your 10-day payoff letter might look visually different. Generally, it will contain your full name, student loan account number(s), outstanding balance, accrued interest, any fees, total payoff amount, a “good-through” or “good-until” date, and instructions on how to pay off your current loan.

The final payoff amount that’s listed includes interest for a 10-day period, and it might also include any unpaid fees. If your loan isn’t paid off in full by the “good-through date,” you’ll need to request another 10-day payoff from your current lender for the most accurate amount.

If after weighing the pros and cons of refinancing, you determine that a refinance will be to your advantage, you’ll likely need to get a 10-day payoff letter from your current lender or loan servicer.


💡 Quick Tip: Often, the main goal of refinancing is to lower the interest rate on your student loans — federal and/or private — by taking out one loan with a new rate to replace your existing loans. Refinancing makes sense if you qualify for a lower rate and you don’t plan to use federal repayment programs or protections.

When You Need a 10-Day Payoff Letter

Here’s a look at three reasons why you might need a loan payoff letter.

•   You’re paying off your loans: If you’re able to put a chunk of money toward student loans to close out your debt ahead of schedule, you’ll need a 10-day payoff letter to get your true final amount due. That way, you’ll be able to make a final payment that fully satisfies the loan.

•   You’re refinancing your student loans: If you opt for a student loan refinance, your refinance lender will likely require a 10-day payoff letter. This informs them of how much they need to send to your current lender, and by what date, to satisfy the debt.

•   You’re buying a home: Mortgage lenders might ask to see your 10-day loan payoff amount to accurately determine your debt-to-income (DTI) ratio. Your DTI informs lenders about whether you can realistically afford taking on a home loan.

How to Request a 10-Day Payoff Letter

Despite having access to your loan details through a monthly statement or your servicer’s website, your actual 10-day payoff amount is likely different from the current amount shown on your account.

Fortunately, accessing this information is relatively easy, whether you have federal or private student loans.

For Federal Student Loans

As a federal student loan borrower, your federal student loan account was assigned to one of five federal loan servicers. To find your servicer, simply log in to your StudentAid.gov account, and go to “My Loan Servicers” from your dashboard.

Once you know who your servicer is, you can contact them to request a 10-day payoff letter.

For Private Student Loans

To get a 10-day payoff letter for a private student loan, you’ll want to contact your current lender. Keep in mind that your private loan might have been sold to a new lender since you first accepted it.

If you’re unsure about who your lender is, you can request a copy of your credit report at annualcreditreport.com . Your credit report will list all of your past and present debt accounts, including private student loans, and the entity that owns the loan.

After identifying your lender, you can contact their borrower support phone number to get a 10-day payoff statement.

💡 Recommended: Student Loan Payoff Calculator

What Is the Loan Refi Timeline After a 10-day Payoff?

The way student loan refinancing works is that you take out a new loan (ideally with a lower rate and/or better terms) and use it to pay off your current student loan(s). This doesn’t happen right away, however. There is generally a 10 day pay-off process.

To make sure your new lender fully pays off your old loan (and you won’t need to make any further payments on that loan), you’ll need a 10-day payoff letter. Once you’ve obtained your 10-day payoff amount and provided the information to your new lender, you’ll want to be sure to sign your loan agreement on the same day.

Once you sign the agreement, here’s a general idea of what the 10-day refi timeline may look like:

•   Days 1 to 3: A three-day cooling-off period is required by law. During this time, your new lender cannot send your payoff check. This is just in case you change your mind about the refinance loan and exercise your right to cancel.

•   Day 4: The refinancing lender will send a payoff amount in one lump sum, either as a mailed check or electronically, to your current lender or servicer. Typically, you’ll receive a welcome packet from your new lender soon after that.

•   Day 10: Upon receiving the payoff amount in full, your current lender will mark the loan as “paid” and close it.

Your first payment on the new loan will likely be due 30 to 45 days after the date your refinance lender sent the payoff amount to your current lender.


💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.

The Takeaway

A 10-day payoff letter tells exactly how much money you would need to pay immediately to fully satisfy your student loan debt. Refinance lenders usually require a payoff letter so they can fulfill the right payment amount on your behalf — no more, and no less, than your original lender requires to fully pay off your debt.

Knowing this final amount is also useful if you want to pay off your student loans ahead of schedule. You may also be required to submit a 10-day student loan payoff lender when you’re applying for a mortgage.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

How do I get a 10-day payoff quote?

Depending on your lender, you may be able to request a 10-day payoff letter by signing into your account online. If not, you will need to call or email your current lender or loan servicer and request a 10-day payoff statement.

Why is my payoff quote so high?

Your 10-day student loan payoff amount is typically higher than your current principal balance due to added interest. Because interest is still charged on the loan in the days leading up to the actual pay-off date, your lender will include 10 days’ worth of interest to your final payoff amount.

What is on a 10-day loan payoff?

A 10-day loan payoff letter or statement will typically include:

•   Student loan account number(s)

•   Outstanding balance

•   Accrued interest

•   Any fees

•   Total payoff amount

•   A “good-through” date

•   Instructions on how to pay off your current loan

Photo credit: iStock/andresr

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.