By the end of 2023, there were: 7.1 million borrowers younger than 24. 15 million borrowers aged 24-34. 14.6 million borrowers aged 35-49.
Most debt belongs to 25- to 34-year-olds; 35- to 49-year-olds owe the most on average, exceeding 50- to 61-year-olds by 8.0%. 104,800 federal borrowers aged 24 years and younger owe an average $14,599 each for a total of $1.53 billion.
6.05% of federal student loan debt belongs to adults under the age of 25. Adults aged 25 to 34 years old hold 30.2% of the federal student loan debt; 38.9% belongs to 35- to 49-year-olds. 24.9% of federal student loan debt is from borrowers aged 50 years and older.
Analysis of the debt share in the U.S. shows that people aged 40-49 hold the largest amount of debt at $4.21 trillion in total. People aged 50-59 have the most credit card debt in total at $0.21 trillion, and people aged 30-39 have the most student loan debt at $0.5 trillion.
The number of people age 60 and older who still have student loan debt has sextupled since 2004 to 3.5 million, and the amount they owe is up 19-fold to $125 billion. Older Americans with student loan debt take second jobs, delay retirement, are less likely to own their own homes and suffer low credit scores.
Chris Farrell: There are about 3.5 million Americans 60 years and older. And they owe more than $125 billion in student loans. And the number of borrowers among this 60-plus age cohort, it's risen sixfold since 2004. In their outstanding debt, it increased 19-fold.
Unlike our siblings in England, Ireland, and Scotland, the US Department of Education doesn't write off student loans when borrowers turn 65 years of age.
Statistics vary, but between 55 percent to 63 percent of Americans are likely living paycheck to paycheck.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more.
The average student loan debt amount is slightly over $30,000. However, many borrowers owe $50,000 or more in student loan debt. This isn't impossible to overcome using the right repayment methods.
If those monthly payments look low compared to what most borrowers pay, it's because most borrowers carry a lot more than $20,000 in student loan debt. As of March 2023, the average federal student loan debt in the United States was about $37,720, according to a BestColleges analysis of Education Department data.
If you want to attend college and are committed to doing the work and succeeding, then $10,000 total debt for four years is pretty trivial. Most such loans are subsidized federal direct (aka Stafford) loans, and you don't pay interest on those until six months after leaving school.
Gen Z is burdened by student loan debt, and now many are facing payments for 1st time. Student loan payments are resuming in October after a three-year pause. American students collectively owe $1.76 trillion in college loan debt.
How long does paying off $100K in student loans take? Although the standard repayment plan is typically 10 years, some loans and repayment plans have longer terms, so you could be repaying for 20 or even 30 years.
Fewer than one quarter of American households live debt-free. Learning ways to tackle debt can help you get a handle on your finances.
So, when you hear about people who have absolutely no debt, live on less than they make, and have a stash of cash for emergencies, you might think they're . . . weird. But living a debt-free life isn't only for a special group of people. It's something anyone can do with hard work and some special characteristics.
On average, men have more debt than women across all categories, except for student loans. While there isn't much data yet, early studies have shown that nonbinary students undergo more financial strain than their cisgender peers, and are more likely to have student loan debt.
Financial setbacks made it difficult to achieve milestones
In addition to the plethora of financial challenges consumers faced this past year, 65% of Americans experienced financial setbacks in 2023.
Those living paycheck to paycheck devote their salaries predominantly to expenses. Living paycheck to paycheck may also mean living with limited or no savings and refer to people who are at greater financial risk if they were suddenly unemployed.
At what age do student loans get written off? There is no specific age when students get their loans written off in the United States, but federal undergraduate loans are forgiven after 20 years, and federal graduate school loans are forgiven after 25 years.
If you default on your student loans, your wages can be garnished, your Social Security benefits can be reduced, and a range of other consequences can come into play. You can avoid losing out on federal benefits by getting back on track with student loan payments and staying up to date.
Over the past 15 years, outstanding student loan balance held by seniors has increased twentyfold. Seniors are increasingly carrying the burden of student loan debt in America, as many enter their golden years saddled with an extra monthly loan payment eating into their retirement savings.