High debt may limit your ability to save for retirement, buy a home, or invest. In general, while $100000 in student loans is a significant amount, its appropriateness varies based on these factors. It's essential to evaluate your specific situation and consider seeking financial advice if needed.
And the number of borrowers with high education debt is growing. As of 2023, there are one million federal student loan borrowers who owe $200,000 or more, according to StudentAid.gov. The good news is that even though paying off such a large balance can be difficult, it's not impossible.
Overall, only 1% of all U.S. adults owed at least $100,000. Young college graduates with student loans are more likely than those without this kind of debt to say they struggle financially.
You're not alone if you are still paying off your student loans from your college education years ago. In fact, many Americans are paying their student loans well into middle age. A 2019 study from New York Life found that the average age when people finally pay off their student loans for good is 45.
What is considered a lot of student loan debt? A lot of student loan debt is more than you can afford to repay after graduation. For many, this means having more than $70,000 – $100,000 in total student debt.
Fifty percent of bachelor's degree recipients graduated with student debt in 2022-23, according to the most recent data available from College Board. The average U.S. household with student debt owes $55,777, according to NerdWallet's 2024 household debt study, published in January 2025.
To make loan payments comfortably, you'll need to maintain a manageable debt-to-income ratio. For example, if your expected starting salary is $35,000 per year ($2,916 per month) a monthly student loan payment of 8 percent should be no more than $233.
20% of U.S. adults report having paid off student loan debt. The 5-year annual average student loan debt growth rate is 15%. The average student loan debt growth rate outpaces rising tuition costs by 166.9%. In a single year, 31.5% of undergraduate students accepted federal loans.
Among master's degree completers who had student loans, the average balance was higher for those who attended private for-profit institutions ($90,300) than for those who attended private nonprofit institutions ($71,900), and both were higher than the average balance for those who attended public institutions ($54,500) ...
At the close of 2019, the average household had a credit card debt of $7,499. During the first quarter of 2021, it dropped to $6,209. In 2022, credit card debt rose again to $7,951 and has increased linearly. In 2023, it reached $8,599 — $75 shy of the 2024 average.
Personal finance specialists often advise students to take on less student loan debt than the average starting salary of their desired career. If you stick to this guideline, specialists say, you should be able to repay your loans within ten years.
As of March 2020, 45% of the outstanding federal education loan debt was held by the 10% of borrowers owing $80,000 or more. Student loan debt is the second largest debt, aside from a mortgage, in a household. 83% of borrowers have a loan balance of $50,000 or less.
With $50,000 in student loan debt, your monthly payments could be quite expensive. Depending on how much debt you have and your interest rate, your payments will likely be about $500 per month or more. Your potential savings from refinancing will vary based on your loan terms.
Overall, more than 10% of graduate and professional students owe $100,000 or more in federal and private student loan debt, according to higher education expert Mark Kantrowitz. (For comparison, less than 1% of students borrow above that amount for bachelor's degree programs.)
On average, people with student loans have spent just over 21 years paying back their loans. Federal student loans offer repayment plans that last from 10 to 30 years. Private student loan repayment terms vary.
Between medical school and undergraduate study, physicians must pay for 8 years of postsecondary education before they can work as doctors. Medical school graduates owe an average of $243,483 in total educational debt, premedical debt included.
One rule to live by is to try to limit your total amount of student loans to a small percentage of what your expected annual salary may be from the first job you get after college. For example, you could decide that your monthly loan payment should be no more than 10 percent of your gross income.
The average monthly student loan payment is an estimated $500 based on previously recorded average payments and median average salaries among college graduates. The average borrower takes 20 years to repay their student loan debt.
Moreover, 16% of borrowers are behind on their loan repayments, which can have a negative impact on credit scores. And more students each year are taking out loans to pay for tuition. Student loan policy is in flux. In 2023, payments on federal student loans restarted after a pause during the COVID-19 pandemic.
Here's the average debt balances by age group: Gen Z (ages 18 to 23): $9,593. Millennials (ages 24 to 39): $78,396. Gen X (ages 40 to 55): $135,841.
Nearly eight in ten students graduate with less than $30,000 in debt. Among those who do borrow, the average debt at graduation is $27,100 — or $6,775 for each year of a four-year degree at a public university.