How much is the average American in student loan debt? (2024)

How much is the average American in student loan debt?

Rule of thumb for how much student debt to take

How much does the average American take out in student loans?

43.2 million borrowers have federal student loan debt. The average federal student loan debt balance is $37,088, while the total average balance (including private loan debt) may be as high as $39,981. Less than 2% of private student loans enter default as of 2021's fourth financial quarter (2021 Q4).

What is a reasonable amount of student loan debt?

Regardless, one rule of thumb for student debt is that you should try not to borrow more than the first year salary you can expect in your chosen field. This means that if you expect to earn $38,000 in the first year of your career, you should try to borrow $38,000 or less for your degree.

Is $20,000 in student loans a lot?

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.

How much student debt does the average person have a month?

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. Therefore, their monthly payments are higher.

What is the average student debt by age?

The rise and fall of interest rates are also a logical factor. 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.

What percent of Americans have no debt?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more.

Which country has the most student loan debt?

Globally, student loan debt in the U.S. is second only to the United Kingdom, according to a 2022 Lending Tree report.

Is 100K in student loans a lot?

If you have six figures of student loan debt, you know how daunting repayment can seem. Student loan debt in excess of $100K can cause you to pay thousands in interest charges, and your monthly payments can take up a substantial amount of your cash flow.

Is $80000 a lot of student debt?

If you have $80,000 in student loan debt, you may find it to be a significant burden — though it isn't difficult to understand how you were saddled with such a high debt amount.

Is $50,000 in student loans a lot?

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.

What is the maximum student debt?

$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.

How many people have more than $1000000 in student loans?

Meru said, “you'd have a mental breakdown.” 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.

How long does it take to pay back a $20000 student loan?

How much money is too much for college?

The general rule is to make sure you don't borrow so much that you'll be paying more than 10% of your expected gross income.

What are the 4 types of college loans?

There are four types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans.

Do student loans affect credit score?

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.

What happens if you don't pay student loans?

If you default on your student loan, that status will be reported to national credit reporting agencies. This reporting may damage your credit rating and future borrowing ability. Also, the government can collect on your loans by taking funds from your wages, tax refunds, and other government payments.

How many 50 year olds have student loans?

Top student loan statistics by age

17.9% for 35 to 49-year-olds. 25.6% for 50 to 61-year-olds. 25.6% for those 62 and older.

How long does it take to pay off $100 K student loans?

While the standard repayment term for federal loans is 10 years, it takes anywhere between 13 and 20 years on average to repay $100k in student loans. Here are some different scenarios to consider, depending on your financial situation and goals.

What percent of Americans have student loans?

At the end of 2023, 43.2 million Americans have federal student loans. Approximately 13% of all Americans had federal student loan debt in 2021. In 2023, 9.9 million borrowers have between $20,000-$40,000 of student loan debt.

How many Americans are 100% debt-free?

Fewer than one quarter of American households live debt-free. Learning ways to tackle debt can help you get a handle on your finances.

Which gender has more debt?

Indeed, men carry more overall debt than women, including across most debt categories. But women carry more student loan debt and often have more credit cards. 1 We go a little more in-depth into this in the next section.

How many Americans have $1,000 saved?

The numbers are consistently around 60%, meaning only 40% of Americans have enough savings to cover an unexpected expense without going into debt. As of January 2023, the report shows that 57% of Americans have less than $1,000 in savings.

What race owes the most student debt?

Black students take out the most student loan debt for a bachelor's degree, followed by white students. Black bachelor's degree holders have an average of $52,000 in student debt. Eighty-six percent of Black students take out student loans to pay for college, compared to 68 percent of white students.