Not all baby boomers have hit their 60s yet, but for those older than 62, the average loan debt is $41,778. That's a staggeringly high number, especially compared to other age groups. The average debt for 25- to 34-year-olds is only $32,947, and a meager $14,563 for those under 24.
Baby boomers, who are now 59 to 77 years old, hold an average of $45,136 in student loan debt, according to Education Data Initiative.
As of 2023, the average millennial borrower has an outstanding student loan balance of over 42,600. Millennials account for almost half (47%) of the nation's outstanding student loan debt.
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.
Black or African American. Black students take out the most student loan debt for a bachelor's degree, followed by white students.
Women hold 66% of all student loan debt. 41% of women undergraduates take out student loans, compared to 35% of male undergraduates. Women take an additional two years on average to pay off student loans. Black women have the highest average amount of debt.
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.
Only a small percentage—about 6% of borrowers—owe $100,000 or more. Nationally, the average student loan balance per borrower is $39,032, so if you have $100,000 in student loan debt, you have about 2.5 times the national average balance. But your loan principal is just one part of the problem.
While the standard repayment term for federal loans is 10 years, it takes anywhere between 13 and 20 years on average to repay $100k in student loans.
According to the Education Data Initiative, baby boomers carry the highest average individual student debt among all generations — $45,136 per borrower.
By generation, Gen Xers have the most nonmortgage debt
Comparatively, the generation with the least debt — Gen Zers (ages 18 to 26) — owes less than half as much, with an average balance of $21,665.
These percentages may seem discouraging; however, let's examine the respondents who have overcome debt or have never had any debt at all. According to our results, baby boomers were the most likely to overcome debt – 14% completely got out of debt, while nearly 12% of Gen Xers and over 7% of millennials did the same.
College costs are more than double what they were in the 1970s, according to a GoBankingRates report. Boomers paid $39,780 in today's dollars for a four-year public university. Gen Z is paying $90,875. It's a bad sign for Gen Z, as college costs are expected to continue to climb.
In the recently released report, the Fed claimed millennials are now over $1 trillion in debt, a 22 percent increase from just five years ago. This record-shattering increase puts millennials in a bad place when compared to other generations.
Data Summary. The average federal student loan payment is about $302 for bachelor's and $208 for associate degree-completers. The average monthly repayment for master's degree-holders is about $688.
But you might be surprised to learn that there are no FAFSA income limits to qualify for aid. For example, a family with a household income of hundreds of thousands of dollars could be helped by other factors in the FAFSA formula, including school costs and the number of siblings also attending school.
The good news is that student loan payments don't have to go on forever. If you have federal student loans and are making payments under an income-driven repayment (IDR) plan, you may be able to have your loans forgiven after 20 years.
The remaining unpaid balance of loans is forgiven after 25 years. Income-Based Repayment (IBR)—Depending on when you first took out loans (before or on or after July 1, 2014), payments are generally 10% or 15% of the borrower's discretionary income, but never more than the 10-year Standard repayment plan amount.
Yes, it's a lot. For the 70% of college grads who take on debt, the average has been pretty stable at about $30,000 for the past few years.
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.
Gen Zers face greater obstacles to financial success
Not only are their wages lower than their parents' earnings when they were in their 20s and 30s, but they are also carrying larger student loan balances.
Most Gen Zs consider themselves job hoppers. Gen Zs are taking work by storm—with increased demands and heightened expectations. They also have tremendous job mobility and majorities of them say they are likely to quit or hop to new jobs for all kinds of reasons.
According to recent data from a 2023 Pew Research Centre survey, Gen Z is more financially independent at a younger age than prior generations. While still in school, a sizeable proportion of Gen Zers work part-time, freelance, or have side hustles. This independence has prompted them to seek more financial control.