Student Loan Debt in America
Gen Xers have the most student loan debt out of any other generation, with an average balance of $44,290 per borrower. Baby boomers have the second-largest amount at $42,520 per borrower, and millennials average $32,800 per borrower.
Behind the numbers (WSJ): Due to escalating tuition and easy credit, the U.S. has 101 people who owe at least $1 million in federal student loans, according to the Education Department. Five years ago, 14 people owed that much. More could join that group.
Black adults in particular tend to bear the highest burdens across indicators, from student loan borrowing rates to default rates to average debt. These debt disparities are symptoms of — and reinforce — a racial wealth gap in and beyond the college years.
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).
Globally, student loan debt in the U.S. is second only to the United Kingdom, according to a 2022 Lending Tree report.
The average federal student loan debt is $37,853 per borrower. Outstanding private student loan debt totals $128.8 billion. The average student borrows over $30,000 to pursue a bachelor's degree.
Looking at all U.S. bachelor's degrees, certain majors were more likely than others to result in a heavy burden of debt, according to the Education Data Initiative's new study. At the top of the list for debt was behavioral sciences, which racked up a median debt of $42,822.
When the time comes to start making payments, only the student is obligated to repay these loans — not the parents. In fact, there's no co-signer. If the student defaults on a federal student loan, it will affect the student's credit and won't be reported on the parent's credit history.
Approximately three-quarters of Black- and White-headed families have debt, but the median debt-to-asset ratio is 50% higher among Black than White families (Copeland, 2020), with Black borrowers less likely to fully repay loans (Brevoort et al., 2021).
While Gen Z has the lowest average debt balance ($22,948 in 2024), they represent the 2nd-largest generational segment; 28.2% of student borrowers are Gen Z. 13.1 million Gen Zers have a student loan debt balance (representing 43.5% of Gen Z aged 18 and older).
Whether your family is rich, poor, or somewhere in between, you can take advantage of student loans provided by the US government. These loans (known as Federal Loans, Direct Loans or Stafford Loans) offer lower rates and more flexible payback options than you can find from almost any other source.
Atop the list is Maine Maritime Academy, where 2019 graduates who borrowed left with an average debt load of $56,897 – nearly $27,000 above the average among all ranked colleges.
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 in total student debt.
The average student borrower takes 20 years to pay off their student loan debt. 43% of borrowers are on the standard 10 years or less plan with fixed payments. Some professional graduates take over 45 years to repay student loans.
Given the level of controversy and debate that student debt generates in the United States, you might think that it's a uniquely American issue. But student loans are actually quite common in other countries. And the list of countries where students take on debt to pay for college is diverse.
64% of all student loan debt belongs to women. The average student debt for women in the U.S. is $31,726. Women have a median annual salary of $56,170 following college graduation, which is 26% of what men can expect to earn following graduation.
Black Americans donated a higher percentage of their income to religious congregations and secular causes in 2018 than all other racial groups, except for White Americans. The main findings of this report are based on the Indiana University Lilly Family School of Philanthropy's Philanthropy Panel Study (PPS).
In 2022, the college enrollment rate for 18- to 24-year-olds was higher for those who were Asian (61 percent) than for those of all other racial/ethnic groups: White (41 percent) Two or more races (36 percent) Black (36 percent)
According to the Federal Reserve, white households held more than 80% of the nation's assets in 2022.