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.
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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.
|
Age |
Total Balance |
Average Balance per Borrower |
|
Up to age 24 |
$103.4 billion |
$14,600 |
|
25 to 34 |
$497.5 billion |
$32,900 |
|
35 to 49 |
$635.7 billion |
$43,200 |
|
50 to 61 |
$297.4 billion |
$45,700 |
|
62 and older |
$112.8 billion |
$41,600 |
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.
|
Race/Ethnicity (Women) |
Cumulative Debt |
|
Asian |
$25,252 |
|
Black or African American |
$37,558 |
|
Hispanic or Latina |
$27,029 |
|
White |
$31,346 |
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.
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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.
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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.
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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
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