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.
Average Student Loan Payments
As of May 30, 2023, the average monthly payment for federal student loans was estimated to be about $500 per month when adjusted for inflation. However, the final number depends on the type of loan, loan amount, interest rates, and repayment plan.
A $30,000 private student loan can cost approximately $159.51 per month to $737.38 per month, depending on your interest rate and the term you choose.
The Consumer Financial Protection Bureau (CFPB) recommends limiting monthly student debt payments to no more than 10% of your gross monthly income. Borrowers with a relatively low income may pay considerably less if they opt for an income-driven repayment (IDR) plan.
On average, it takes about 10–20 years to pay off a student loan.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.
The monthly payment on a $70,000 student loan ranges from $742 to $6,285, depending on the APR and how long the loan lasts. For example, if you take out a $70,000 student loan and pay it back in 10 years at an APR of 5%, your monthly payment will be $742.
For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount.
Let's say you have $200,000 in student loans at 6% interest on a 10-year repayment term. Your monthly payments would be $2,220. If you can manage an additional $200 a month, you could save a total of $7,796 while trimming a year off your repayment plan.
On the Standard Plan, your monthly payments are a fixed amount of at least $50 each month. The exact payment amount is calculated so that you pay off the entire loan amount (including the interest that accrues) before the end of your repayment period.
How student loans affect your credit score. Student loans are a type of installment loan, similar to a car loan, personal loan, or mortgage. They are part of your credit report, and can impact your payment history, length of your credit history and credit mix. Paying on time could help your score.
Student loan debt totals $1.77 trillion and is held by about 42.8 million Americans. Roughly two-thirds of student loan borrowers pay up to $300 a month. The average federal student loan debt held as of the fourth quarter of 2024 is $38,375.
There's a general rule that you shouldn't borrow more in student loans than you expect to make in your first year out of college. A bachelor's degree recipient's average student loan debt in 2021 was $29,100. In theory, a graduate with a salary above this could handle a 10-year standard repayment plan.
For example, if college costs are $10,000 and you have only $6,000 available to pay those costs, this rule of thumb would suggest borrowing $5,000, leaving $1,000 to cover loan payments.
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.
For example, if you have a $100,000 loan balance with a 7% interest rate and a 10-year repayment term, you'll owe $39,330 in interest payments over the life of the loan. So your $100,000 loan becomes $139,330, with monthly payments of $1,161.
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.
While this figure can vary based on factors such as location, family size, and lifestyle preferences, a common range for a good monthly salary is between $6,000 and $8,333 for individuals.
It is recommended that you spend 30% of your monthly income on rent at maximum, and to consider all the factors involved in your budget, including additional rental costs like renters insurance or your initial security deposit.
One way to gauge how much is the right amount to spend on fun is the 50/30/20 rule. According to this method, no more than 50% of your income, after taxes, should go toward needs; 30% of your income can go to things you want, including fun; 20% should go into savings.