Student Loan Debt Statistics in 2024
Pursuing higher education is a worthwhile act no matter the cost, but the cost does play a role. Student loan debt statistics point to a total outstanding balance of $1.745 trillion.
Knowing how much student loan debt is potentially on the way can help students and their parents better prepare to manage the costs of higher education. So, how much student loan debt is normal? Let’s take a look at some statistics about student loan debt that can shed some light for potential borrowers.
Key Points
• U.S. student loan debt has reached over $1.7 trillion in 2024, continuing to be a significant financial burden for millions of borrowers.
• The average student loan debt for a bachelor’s degree graduate is around $29,400.
• Many borrowers struggle with repayment, as over 8% of student loans are in default, highlighting ongoing financial stress among borrowers.
• Student loan debt delays major life decisions for many young adults, such as buying homes, starting families, or saving for retirement.
• Student loans shouldn’t scare students away from attending college, but should instead motivate the student to find creative ways to pay for college. Students can apply for scholarships, grants, and/or work a part-time job. As a last resort, students can apply for federal and private student loans.
Overview of Student Loan Debt in America
Before we dive into American student loan debt statistics, it’s important to note that these numbers are just averages. How much student loan debt someone stands to accumulate depends on many different factors such as school choice, living arrangements, and the type of student loan they take out.
Total Outstanding Student Loan Balance
Let’s start our examination of statistics on student loan debt in America by getting an idea of the bigger picture. As noted earlier, American borrowers amassed over $1.745 trillion worth of student loan debt as of June 2024, according to the Federal Reserve.
Average Student Loan Debt per Borrower
The College Board found that as of March 2023, 32% of federal loan borrowers had debt under $10,000. Another 21% held student loan balances between $10,000 and $19,999, and 22% held balances between $20,000 and $39,999.
Student Loan Debt by Education Level
The type of degree a student pursues can influence how much they spend on their education and how much they need to borrow. These statistics for student loan debt by degree can help students determine how far they want to take their education or how much they need to save to avoid student loan debt based on their degree goals.
Bachelor’s Degree Debt Statistics
Many students choose to start and stop their higher education journey with a bachelor’s degree.
For the 2021-22 school year, 51% of bachelor’s degree recipients from public and private nonprofit four-year institutions graduated with debt, averaging $29,400 per borrower.
Among public four-year institution graduates, 49% had federal loans with an average debt of $20,700, while 52% of private nonprofit institution graduates had federal loans, averaging $22,200.
The average private student loan debt is $34,600 per borrower at public four-year institutions and $44,600 at private nonprofit institutions.
Master’s Degree Debt Statistics
Once students choose to pursue a degree higher than a bachelor’s, the student loan debt begins to mount. For students in class of 2019-20, 13% of master’s degree recipients borrowed $100,000 or more to finance their undergraduate and graduate education.
Recommended: How to Live with Student Loan Debt
Doctoral Degree Debt Statistics
A doctoral degree is another option students have for continuing their college education. Like the master’s students, 13% of doctoral degree recipients needed to borrow $100,000 or more to cover the total costs of their college education.
Repayment Challenges and Delinquency Rates
Based on how much student loan debt borrowers have on average, it’s easy to see why some borrowers may struggle with repaying their student loans on time. A delay in payments can lead to delinquency. Student loan delinquency occurs when a borrower fails to make a scheduled payment on their loan by the due date. If the payment is late for an extended period, the loan can default, leading to more severe financial consequences, such as a hurt credit score or the debt entering collections.
Percentage of Borrowers in Delinquency
How many borrowers find themselves struggling with student loan payments? In October 2023, student loan payments that were paused during the pandemic resumed. According to the Department of Education, at that point about 30% of borrowers were past due on student loan payments (this accounts for about $290 billion in loans).
Factors Contributing to Delinquency
Avoiding delinquency is easier when the borrower understands what it means to be delinquent on a loan account. If a borrower fails to make payments on time (whether this is payment number one or the final one), the loan eventually falls into default.
Many borrowers struggle to keep up with student loan payments while juggling other important expenses like housing, groceries, and transportation. With federal student loans, it’s possible to sign up for a repayment plan based on your income (and to enjoy other perks like student loan forgiveness programs). These income-driven repayment plans can make it easier to stay on budget, as they tend to result in smaller monthly loan payments.
A word of warning — income-based repayment plans often mean a longer loan term, which leads to the borrower paying more in interest overall. Whenever possible, paying off a student loan early can lead to major interest savings.
Private student loan lenders tend to be less flexible when it comes to repayment, but if a borrower is struggling to make payments on time, it’s always a good idea to ask for support.
Impact of Student Loan Debt on Life Milestones
When a borrower has to manage student loan debt payments, their monthly budget has less room in it to support their other financial goals — many of which can affect when they can achieve certain important life milestones.
For example, the National Association of Realtors found that 40% of consumers with student loan debt don’t have an emergency fund of $500. It’s easy to see how that level of financial strain can push back meeting goals like buying a home or getting married.
Homeownership Rates
Speaking of buying a home, 46% of student loan borrowers delayed moving out of a family member’s home after college, and more than half (51%) put their goals of buying a home on hold.
Delayed Marriage and Children
Family planning in particular becomes more tricky when navigating repaying student loan debt. Because of their student loan debt burden, borrowers reported delaying:
• Having a long-term partner (12%)
• Getting married (12%)
• Starting a family (14%)
• Adding to their existing family (10%)
Retirement Savings and Planning
Retirement may feel eons away to college students and new graduates, but it’s never too soon to start saving for a happy retirement. Unfortunately, 26% of student loan borrowers reported they haven’t been able to afford to contribute to a retirement account at all.
The Takeaway
Student loan debt doesn’t need to scare anyone away from pursuing higher education if that is something they dream of pursuing. That being said, knowing what that debt burden can look like can help students make more strategic decisions about where they go to school, how much they borrow, and how they plan to pay it off.
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.
What is the average student loan debt for bachelor’s degree holders?
Over half (51%) of bachelor’s degree recipients from public and private nonprofit four-year institutions have student loan debt, with an average debt of $29,400. Specifically, graduates from public four-year institutions had an average federal debt of $20,700, while those from private nonprofit institutions averaged $22,200.
Which degree level tends to have the highest student loan debt?
Borrowers who pursue a professional degree tend to borrow the most. According to the Education Data Initiative, the major with the largest median debt is Doctor of Pharmacy at $310,330.
How do student loan debt statistics vary by region or state?
Student loan debt statistics show significant variation by region and state. For instance, in New Hampshire, the average student loan debt is $39,928, with 70% of borrowers having debt, while in Utah, the average is $18,344, and 39% of borrowers carry debt.
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