While $30,000 is about average for student debt, you can take steps to pay it off sooner than average.
Plan out your repayment
Let's assume you owe $30,000, and your blended average interest rate is 6%. If you pay $333 a month, you'll be done in 10 years. But you can do better than that. According to our student loan calculator, you'd need to pay $913 per month to put those loans out of your life in three years.
The average federal student loan debt is $37,338 per borrower. Private student loan debt averages $54,921 per borrower. The average student borrows over $30,000 to pursue a bachelor's degree.
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 of total student debt.
If you racked up $30,000 in student loan debt, you're right in line with typical numbers: the average student loan balance per borrower is $33,654. Compared to others who have six-figures worth of debt, that loan balance isn't too bad. However, your student loans can still be a significant burden.
Data Summary. The average federal student loan debt in the U.S. is about $37,090. In 2019-2020, the average student loan amount borrowed for a four-year bachelor's degree was $30,500. Today's total federal student loan debt balance is just over $1.6 trillion.
The general rule of thumb is not to borrow more than you expect to earn as a starting salary, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit. That figure will vary a bit based on what you plan to study.
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. That's 2/3 more.
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 have too much student loan debt, you won't be able to save as much for retirement. Student loan debt can lower your credit score, especially if you fail to make on-time payments. Student debts may be forgiven under certain circumstances, but almost never if they are in default.
Student loan debt can feel overwhelming and take decades to pay off. The standard federal student loan repayment term is 10 years, but the average student borrower takes 20 years to fully repay their debt. But that doesn't have to be the case.
According to the Federal Reserve, 30-39 year-olds have an average student loan debt of $42,748. 40-49-year-olds possess an average student loan debt of $44,864. Borrowers 24 and younger owe an average of $14,563 in student loan debt.
Pay More than Your Minimum Payment
Paying a little extra each month can reduce the interest you pay and reduce your total cost of your loan over time. Continue to make monthly payments even if you've satisfied future payments, and you'll pay off your loan faster.
The maximum amount you can borrow each academic year in Direct Unsubsidized Loans ranges from $5,500 to $12,500 for undergraduates, depending on your year in school and your dependency status. Direct Unsubsidized Loans have an annual limit of $20,500 for graduate or professional students.
The average monthly federal student loan payment for recent bachelor's degree-recipients is about $300. People generally borrow more and have higher interest rates for graduate degrees.
Based on data from the office of Federal Student Aid, this is the average amount each age group owed in student loan debt as of Q4 2022: 24 and Younger: $14,315. 25 to 34: $33,173. 35 to 49: $43,438.
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.
According to EducationData.org, student loan borrowers are in debt by an average of $39,350. So, if you have $50,000 in student loan debt, you owe more than the national average among borrowers.
If $25,000 is your Total student loan amount, and you are earning at Least $50,000 per year in salary upon graduation from college, then No, it is not a lot. You will be able to pay it all back (with interest) within five years.
Having a student loan will affect your credit score. Your student loan amount and payment history are a part of your credit report. Your credit reports—which impact your credit score—will contain information about your student loans, including: Amount that you owe on your loans.
Most students have two main options for student loans: federal (government) loans or private loans from banks, credit unions, and other lenders. You should research all your options for federal loans, also known as Direct loans, before shopping around for private loans.
Student Loan Debt Statistics in 2023
Student loan debt totals $1.74 trillion and is held by about 43.5 million Americans, with the average monthly payment amounting to $337.