Student Loan Debt Statistics for 2023 [Average Student Loan Debt + More] Here is the breakdown of student loan borrowers by age: < Age 24: $115.5 billion (7.8 million borrowers), 25 - 34: $500.5 billion (14.8 million borrowers), 35 - 49: $601.7 billion (14.2 million borrowers), 50 - 61: $262.2 billion (6.2 million borrowers), > 62: $86.8 billion (2.3 million borrowers). Student Debt Weighed Heavily on Millions Even Before Pandemic - Census.gov According to the U.S. Department of Education's Office of Federal Student Aid, borrowers between the ages of 25-34 had the most number of borrowers with student loan debt as of December 2021. About 1 in 5 borrowers have at least one risk factor, such as previous delinquencies or pre-pandemic payment assistance on their loans, that suggests they may have difficulty keeping up with their bills once payments resume, according to the Consumer Financial Protection Bureau. That's a -9.6% higher rate than the next highest group! (, 89% of private student loans are used for undergraduate degrees. Michael D. King, Neil Bennett, and Lindsay M. Monte. Set up an automatic withdrawals to avoid late fees. Differences by educational attainment and race were so large that non-Hispanic Black adults who had attended college but not earned a degree were about as likely as non-Hispanic White adults who had completed advanced degrees (21% and 22%, respectively) to carry student debt. Some people had more than one type of debt. The most popular way these borrowers spent money was on retail items, with 44% of folks reporting that's where their additional spending went. Lock Note: Key identifies bars in order from left to right. As of 2022, the total student loan debt in America has reached over $1.7 trillion. This placed millions of borrowers into temporary student loan forbearance, which impacted student loan debt statistics. Nearly 45 million students of all ages take out student loans to cover the cost of secondary education. The PSLF program offers debt forgiveness to those who agree to work full time for a qualifying employer and meet the PSLF requirements. The average student loan debt at non-profit private colleges and universities is $33,900 (based on the average amount of borrowing to obtain a bachelors degree). In 2017, nearly 48% of borrowers had the same or higher balance than the previous quarter due to accumulated interest. (, College graduates under the age of 35 spend nearly one-fifth of their current salaries on student loan payments. Opinions expressed by Forbes Contributors are their own. With over 44 million Americans carrying a student loan debt, multiple generations of graduates are affected. Though few borrowers (5%) overspent by more than $10,000, over half of borrowers who spent money they assumed would be forgiven laid out between $1,000 and $5,000 more than they would have otherwise. Student loan debt in America, in four charts - NBC News While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Information on the methodology and reliability of these estimates can be found in thesource and accuracy statementsfor each HPS data release. 2023 Student Loan Debt Statistics: Average Student Loan Debt Intuit and QuickBooks are registered trademarks of Intuit Inc. Students who attended for-profit institutions account for a disproportionate share of education debt, including both count of borrowers and dollar amount of student loans. Biden administration announces $39 billion in student debt relief But when it comes to the proportion of total student debt owed by each income cohort, the. Monetary Base - H.3, Assets and Liabilities of Commercial Banks in the U.S. - More from Mint. Student Loans: Why the Pain Will Be Mostly Political - MSN Maryland had the highest average student debt in 2021, at $43,219 per graduate, North Dakota had the lowest, with $29,466. In 2017, for example, rates for some non-Hispanic Black groups were twice as large as for non-Hispanic White adults and Black adults were more likely than White adults at every educational attainment level to have student loans. Today, student loans are part and parcel in the pursuit of higher education. Our survey data included: Before using survey data, we manually reviewed responses to identify and remove any responses that were strong outliers indicative of unreliable reporting from respondents. Currently, the nations student debt balance sits at $1.5 trillion nearly double the amount of the United States credit card debt. Services, Sponsorship for Priority Telecommunication Services, Supervision & Oversight of Financial Market They were also more likely to report having a somewhat or very difficult time paying their usual expenses in the prior week than those with at least a bachelors degree. The average student loan debt at for-profit colleges and universities is $43,900 (based on average amount of borrowing to obtain a bachelors degree). Many of them will struggle when that happens. Student Loans In School:$124.8 billion (6.7 million borrowers), Student Loans In Repayment:$14.7 billion (0.4 million borrowers), Student Loans In Deferment:$114.4 billion (3.2 million borrowers), Student Loans in Forbearance:$887.4 billion borrowers (22.2 million borrowers), Student Loans In Default:$122.2 billion (5.5 million borrowers), Student Loans In Grace Period:$43.7 billion borrowers (1.7 million borrowers). (, 60% of college graduates with debt age 35 and under expect to pay off their student loans into their 40s. The average student loan debt per borrower is roughly $35,000. Type of education debt (by whose education funded) It's the first step in a process known as "negotiated rulemaking" which will take longer than Biden's initial executive order, but aims to provide relief without a successful legal challenge. According to SIPP, adults with at least a bachelors degree had student debt totaling $756 billion. Greater difficulties with loan repayment among attendees of for-profit institutions may partly reflect the lower returns on degrees from these institutions.42 Indeed, when accounting for race and ethnicity, first-generation status and institution selectivity, the relationship between for-profit institution attendance and student loan default persisted. Between 1995 and 2017, federal student loan debt "increased more than sevenfold, from $187 billion to $1.4 trillion (in 2017 dollars)," according to the nonpartisan Congressional Budget Office. A locked padlock In an effort to reduce the burden of student debt during the pandemic, the government has frozen payments for federal student loans and interest rates have been set to zero. Over the past decade, federal student loan debt has increased nearly 70%. It collects data and measures change in Americans economic well-being, family dynamics, education, assets, health insurance, child care and food security. Strikingly, there are 2.3 million borrowers who are 62-years-old or older and collectively owe $86.8 billion. Direct subsidized and unsubsidized loans for undergraduate students issued between July 1, 2019 and July, 1, 2020 came with an interest rate of 4.53%. Unlike subsidized federal loans which dont start accruing interest until 6 months after students graduate, private student loans and unsubsidized federal student loans start accruing interest immediately. (, Over $0.5 trillion of federal student loan debt is owed by borrowers who attended private institutions. A .gov website belongs to an official government organization in the United States. That said, progress toward retirement savings was notably lower among those without a bachelor's degree, irrespective of student loan debt levels. Congress and the White House are battling over student loan cancellation. Student loan debt in America, in four charts Biden's expected student loan forgiveness announcement could help up to tens of millions of borrowers and wipe the slate clean for as many as. Refinance your loans at a lower interest rate. (, 3 in 10 adults have taken on debt to help pay for college. Although there are slightly fewer borrowers between the ages . Average Student Loan Debt. For a complete breakdown of the average student debt by state, follow the table below: While some of these student loan debt statistics may make affording college seem impossible, there are many ways you can successfully navigate the student loan waters. The average student loan debt in the U.S. for an undergraduate student is $28,400. Around 54% of college students took on debt in 2020 to pay for education; the total sum amounted to $1.6 trillion. While volunteer work isnt technically employment, this is another avenue through which your time and services can result in money being directed toward reducing your student loan. 21 Student Loan Debt Statistics and Facts You Should Know in 2022 About 1 in 3 borrowers spent more than they normally would assuming they were going to see some debt relief, according to a recent survey of over 900 borrowers who qualified for Biden's relief plan from Intelligent.com. Many adults with student loans also faced other debt burdens. An official website of the United States government. (, In the class of 2020, 55% of students graduating from public four-year schools had student loan debt. (, 30% of bachelors degree holders graduate with no debt. Discover the average amount of debt and more student debt statistics in our guide. Students younger than 40 account for around 65% of borrowers, a generation thats grown its loan balances by more than 300% since 2004. Official websites use .gov All international money transfer services, https://studentaid.ed.gov/sa/types/loans/interest-rates, a range of loan amounts to meet their educational needs, https://www.newyorkfed.org/microeconomics/databank.html. Difficulties with repayment also varied by race and ethnicity in 2019. Student loans in 2020: Amount of student loan debt in the U.S.: $1.57 trillion. The Fed - Student Loans - Federal Reserve Board Individuals who did not complete their degree or who attended a for-profit institution were more likely to struggle with repayment than those who completed a degree from a public or not-for-profit institution. (, In the U.S., the outstanding value of student loan debt is greater than that of auto loan debt. 45 Table 20. Those with debt on top of their student loans also often owed more in student loans. Note: Key identifies bars in order from left to right. See Matthew S. Rutledge, Geoffrey T. Sanzenbacher, and Francis M. Vitagliano, "Do Young Adults with Student Debt Save Less for Retirement?" It's unclear how long the process will take, but experts say it could be up to a year. Some people also took out education debt to assist family members with their education (through either a co-signed loan with the student or a loan taken out independently). People aged 25-34 are the most likely to have student loan debt, with 14.9 million borrowers in this age group. Over the past 30 years, the average cost of college tuition has nearly tripled, causing many students to graduate with not only the freshman 15, but also student loan debt. The largest way tuition gets paid is through aid, followed closely by loans and payments made by students themselves. This data is critical for government programs, policies, and decision-making. Do women or men have more student debt? After 20 days, comments are closed on posts. More than 38 million student loan borrowers have student loan debt of $60,000 or less. The borrower has been late on their loan payments for over 360 days. But even this group accrued debt if they started but did not complete college courses or took vocational training, such as trade certifications or licensing. DON'T MISS: Want to be smarter and more successful with your money, work & life? As of 2020, 85 percent of the general population in the United States had no student . (, Roughly 25% of student loan borrowers went to graduate school. What Is the Average Student Loan Debt in the US? - MoneyGeek Talk with a financial professional if you're not sure. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. Among adults who attended college. Detailed loan data, including initial loan amount, principal remaining, interest rate, lender, and more. A poll of 3,227 HR professionals by SHRM found that 4% of employers offer employer-provided student loan repayment assistance. Consistent with previous years of the survey, those with the least debt often had the most difficulty with repayments in 2019. Even with high national unemployment and without a current need to pay down this debt, recent stimulus money has been used to reduce debt burden.