Borrowers between the ages of 25 and 34 carry about $500 billion in federal student loans—the majority of people in this age group owe between $10,000 and $40,000. However, people carry their education debt well into middle-age and beyond. Borrowers ages 35 to 49 owe more than $620 billion in student loans.
Average Student Loan Debt in The United States. The average college debt among student loan borrowers in America is $32,731, according to the Federal Reserve.
More than half of those 45 million people with federal student loans have $20,000 or less to pay, with about a third of all borrowers owing less than $10,000. Seven percent of people with federal debt owe more than $100,000.
The average student loan debt for recent college graduates is nearly $30,000, according to U.S News data. Sept. 14, 2021, at 9:00 a.m.
Among those who borrow, the average debt at graduation is $25,921 — or $6,480 for each year of a four-year degree at a public university. Among all public university graduates, including those who didn't borrow, the average debt at graduation is $16,300.
And yet, over half of Americans surveyed (53%) say that debt reduction is a top priority—while nearly a quarter (23%) say they have no debt. And that percentage may rise.
It could realistically take between 15 and 20 years to pay off a $100,000 student loan balance, or longer if you require lower monthly payments.
The average student loan debt was $28,400 for 2019-20 graduates, according to the most recent CollegeBoard data. Higher-income families tend to have higher average student loan debts. Student loan debt is highest among Black families, compared with other races.
Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years or 25 years, depending on when you received your first loans. You may have to pay income tax on any amount that is forgiven.
How much money does the average American owe? According to a 2020 Experian study, the average American carries $92,727 in consumer debt. Consumer debt includes a variety of personal credit accounts, such as credit cards, auto loans, mortgages, personal loans, and student loans.
Is $50,000 in student loan debt a lot? The resounding answer is yes, $50,000 is a lot of student loan debt. But when you consider the cost to attend college and that most students take four to five years to graduate, that figure isn't a surprise.
The average 4-year Bachelor's degree debt from a public college is $27,000. 65% of students seeking a Bachelor's degree from a public 4 year college have student loan debt. The average 4-year Bachelor's degree debt from a private for-profit college is $39,900.
Registered Nurse. Nursing salaries—and the student loan debt that nurses carry—depend on education level. Nurses who have a master of science in nursing have the most student loan debt, while those who have a bachelor's degree or associate degree have lower debt, but may have lower salaries as well.
"Nearly 60% of all student loan debt is held by the rich and upper-middle class," he said in a May 21, 2022 newsletter.
Households with income over $74,000 hold roughly 60% of the total public student loan debt. Households with income over $74,000 hold $1.26 trillion in student loan debt. Households in the lowest 40% income bracket hold roughly 20% of the total public student loan debt.
The highest-income 40% of households (those with incomes above $74,000) owe almost 60% of student loan debt. These borrowers make almost three-quarters of student loan payments. The lowest-income 40% of households hold just under 20% of student loans and make only 10% of the payments.
The student loan payment should be limited to 8-10 percent of the gross monthly income. For example, for an average starting salary of $30,000 per year, with expected monthly income of $2,500, the monthly student loan payment using 8 percent should be no more than $200.
You can still buy a home with student debt if you have a solid, reliable income and a handle on your payments. However, unreliable income or payments may make up a large amount of your total monthly budget, and you might have trouble finding a loan.
The cost of a four-year degree “averages $102,000”, which means that even if you include the average $30,000 debt students graduate with, in pure numbers terms, it's still worth it.
Kevin O'Leary, an investor on “Shark Tank” and personal finance author, said in 2018 that the ideal age to be debt-free is 45. It's at this age, said O'Leary, that you enter the last half of your career and should therefore ramp up your retirement savings in order to ensure a comfortable life in your elderly years.
Is being debt-free the new rich? Yes, as long as you have money and assets, in addition to no debts. Living loan-free is a fantastic way to stay financially secure, and it is possible for anyone. While there are a couple of downsides to being debt-free, they are minimal.
Likewise, millennial consumers (ages 25 to 40) have an average of $27,251 in non-mortgage debt, presumably across credit cards, auto loans, personal loans and student loans.