Most student loans — about 92.4% — are owned by the government. Total federal student loan borrowers: 42.7 million. Total outstanding federal student loan debt: $1.64 trillion.
Student debt by age
Perhaps unsurprisingly, most people with student debt — about two-thirds of them — are between the ages of 25 and 50. This group also owes the most, federal statistics show. That said, the fastest growing group of borrowers in the past several years has actually been older adults.
Federal loans are available to graduate and professional students with an interest rate of 8.08%; parents can borrow PLUS* loans at 9.08%. 90.79% of all student loan debt is federal; the remaining 9.21% is private loan debt. Private student loans, including refinance** loans, start as low as 3.45%.
Student loans are owned by the federal government or private institutions, depending on the type of student loan. Federal student loans are owned by the U.S. Department of Education while private student loans are owned by the financial institution that granted them.
One of the primary reasons to prioritize federal student loans is because they tend to have lower interest rates. Right now, the average student loan rates range from 6.53% to 9.08% for federal loans, while their private counterparts range from 3.74% to 17.99%.
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.
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.
Higher percentages of Black (88 percent) and American Indian/Alaska Native (87 percent) students received grants than students who were of Two or more races (79 percent), White (74 percent), and Asian (66 percent).
Black adults are more than twice as likely than white adults to have student loan debt. The following graph includes federal and private student loan debt among all adults. On average, Black adults in the U.S. also hold higher student loan debt balances than borrowers of other races.
Black students must borrow more to pay for college, they are twice as likely to default on their loans, and their debts last far longer than those of white borrowers. Failing to recognize that student debt does not pay for itself, many policymakers have neglected these racial impacts.
The Qualtrics/Intuit Credit Karma report found 20 percent of borrowers hadn't made any payments on their loans.
Soaring college costs and pressure to compete in the job marketplace are big factors for student loan debt. Student loans are the most common form of educational debt, followed by credit cards and other types of credit. Borrowers who don't complete their degrees are more likely to default.
Meanwhile, 1 million people had a federal student loan balance of more than $200,000, up from 600,000 individuals.
Paying off such a large balance can be difficult and time consuming. For example, if you had $300,000 in federal student loans and paid them off on the standard 10-year repayment plan with a 6.22% interest rate, you'd end up with a monthly payment of $3,364 and a total repayment cost of $403,663.
Unaffordable student loans are often seen as a problem afflicting young people, but in 2022, 3.5 million Americans over the age of 60 held $1.25 billion in student loan debt.
According to Experian, average total consumer household debt in 2023 is $104,215. That's up 11% from 2020, when average total consumer debt was $92,727.
No, there's no age limit. Almost everyone is eligible for some type of federal student aid. The adult student still needs to complete the FAFSA form, and make sure not to miss any deadlines, just like any other student.
Despite these benefits, these loans have a few disadvantages, including a lack of subsidized options for graduate students, difficulty qualifying for bankruptcy, and funding limitations.
Private student loan funds are usually disbursed (sent) directly to your school's financial aid office. Personal loan funds are deposited directly into the borrower's bank account. Consider consulting with a tax and/or financial advisor to make sure you fully understand the differences.
Federal student loans and federal parent loans: These loans are funded by the federal government. Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school.