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Student Loan Debt Statistics By Mark Kantrowitz July 23, 2020 More than two-thirds of Bachelor's degree recipients in the Class of 2019 graduated with an average of $29,900 in student loan debt. There are 36 million student loan borrowers who hold approximately $1.3 billion in Direct Loans. The U.S. student loan debt balance increased by 0.8% since the end of 2021. Direct Loans:$1,315.2 billion (35.9 million borrowers), Federal Family Education Loans (FFEL):$245.9 billion (11.0 million borrowers), Perkins Loans:$5.2 billion (1.7 million borrowers), Stafford Subsidized:$285.7 billion (29.6 million borrowers), Stafford Unsubsidized:$539.8 billion (29.2 million borrowers), Stafford Combined:$825.5 billion (33.4 million unique borrowers), Grad PLUS:$82.8 billion (1.5 million borrowers), Parent PLUS:$100.8 billion (3.6 million borrowers), Perkins:$5.2 billion (1.7 million borrowers), Consolidation:$552.1 billion (11.5 million borrowers). However, these policies are only temporary. All rights reserved. Finder.com is an independent comparison platform and Once you link to another site you are subject to the policies of the new site. The Federal Reserve Bank of New York reports that every generations student loan debt has increased between 263% and 1,423% overall since 2004. SIPP is the nations premier source of information for income and program participation. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. The remainder of this section therefore considers the repayment status of all borrowers, including those who completely repaid their debt. Adults carrying student loan debt reported lower levels of financial well-being than did similar adults without outstanding debt. Only about 16.6 million of the 44.7 million borrowers are able to stay on top of their loans and lower their balances through regular repayments. COE - Loans for Undergraduate Students and Debt for Bachelor's Degree For instance, the median student debt of those with no credit card debt was $16,000 in 2017. Neil Bennett is an economist in the Census Bureaus Labor Force Statistics Branch. Collectively, 28 percent of borrowers had at least one form of education debt besides student loans. That's a -9.6% higher rate than the next highest group! (, 16% of Americans think they will never be able to pay off their student loans. We owe $11.92 trillion on mortgages, $1.55 trillion on vehicle loans and $1.60 trillion for student loans. This suggests that the high default rates for attendees of for-profit institutions reflect characteristics of the schools and is not simply due to the characteristics of their students. Forty percent of adults under age 40 with at least a bachelor's degree who had outstanding education debt felt their retirement savings plan was currently on track. Branches and Agencies of Currently 43.8 million borrowers in the U.S. have student loan debt, with the total outstanding. Your one-stop shop for maximizing your money - get the best deals in personal finance with our weekly newsletter! Information on the methodology and reliability of these estimates can be found in the source and accuracy statements for each SIPP data release. An official website of the United States government. For example, those with some college but no degree were more likely to have experienced a loss of employment income within their household since the start of the pandemic. Among all totals borrowed, students are taking out a range of loan amounts to meet their educational needs. Among adults who attended college. The difference in delinquency rates by loan amount was likely because education levels, and the associated earning power, generally rose with debt levels. (, Of Black graduates with bachelors degrees in 2016, only 14% did not take out student loans. The latest student loan debt statistics for 2021 show that there are 45 million borrowers who collectively owe nearly $1.7 trillion in student loan debt in the U.S. Student loan debt. For the full amount due as shown on your bill; No later than 15 days after your due date; and, While you are employed full-time by a qualifying employer, Government organizations (federal, state, local or tribal), Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code, Other not-for-profit organizations whose primary purpose is to provide certain types of qualifying public services. Student Loan Debt Statistics [2023 Numbers & Facts] - Review42 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). About 1 in 4 non-Hispanic Black women had student debt, compared to 1 in 8 non-Hispanic White men. 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. Additionally, those with outstanding student loan debt reported lower levels of financial well-being across several dimensions. Student loan debt in the United States has reached a staggering $1.6 trillion, leading to a drop in everything from marriage rates, to small business formation, to career ambitions, to savings rates across the country. Student Loans: Why the Pain Will Be Mostly Political - MSN The average student loan payment is between $200 and $299, according to the most recent available data from the Federal Reserve. Nearly seven in 10 seniors (65%) who graduated from public and private non-profit colleges in 2018 had student loan debt. Approximately 11.0 million student loan borrowers hold $246 billion in Federal Family Education Loans (FFEL). (, The average undergraduate student has $28,400 in student loan debt. As time moves on and more people go to school, theyre taking on more substantial student debt. Read on to find insights on this and more! The most popular way these borrowers spent money was on retail items, with 44% of folks reporting that's where their additional spending went. 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). Seventeen percent of those with education debt were behind on their payments in 2019. But millions of others rely on scholarships, grants, and, of course, student loans. 98 Key Student Loan Statistics for 2023: Demographics & Analysis This data is critical for government programs, policies, and decision-making. Finders AI Anxiety Index takes a pulse of US households on how concerned they are about AI replacing jobs. (, In the 2019-20 academic year, 42% of first-time students attending public institutions took out student loans. their student loans on average. Among STEM workers, those who majored in STEM earned more than those who did not. 32 East 31st Street, 4th Floor, Younger adults, particularly those in their late 20s and early 30s, held a disproportionate amount of debt and clear racial and ethnic differences existed in this age group as well. People of color and women are the most . Finder.com LLC. 4.40 % - 7.25 % Variable APR from 5.07 % - 9.12 % Find My Rate on Credible's website Disclosure Fixed APR from 5.08 % - 8.04 % Variable APR from 5.03 % - 8.74 % Find My Rate on Credible's website. Once the borrower is no longer enrolled in school at least half time, they are not required to make payments for six months. (, Only 2% of PSLF program applications qualify for student loan forgiveness. (, 30% of bachelors degree holders graduate with no debt. The largest way tuition gets paid is through aid, followed closely by loans and payments made by students themselves. Debt Statistics (2021) - Bankruptcy, Student Loans, Credit Cards And More This year, they went down. Non-Hispanic White women, who made up the largest percentage of college graduates, carried as a group an estimated $398 billion in student loans in 2017. Note: Key identifies bars in order from left to right. We then reviewed survey data collected from 406752 Bold.org members to surface patterns in student loans. Some progressive Democrats plan to cancel $50,000 of student loan debt, while Biden wants $10,000 of student loan cancellation. (, 57% of Black female college grads experience financial difficulties while repaying their student loans. Learn about the different types of IRAs and which is right for you. So expensive, in fact, that over 43 million students are facing outstanding student loan debt. This blog does not provide legal, financial, accounting or tax advice. They let lenders know that youre a trustworthy, less risky borrower when youre in the market for a future car, home or personal loan. (, One-third of women say that over 25% of their income goes toward paying off student loans. Student Loan Debt Statistics for 2023 [Average Student Loan Debt + More] (, In 2020-21, 47% of federal student loans went to graduate students. Which states have the highest debt per student? 34% of student loan borrowers spent money they thought was going - CNBC (, Student loan debt has increased by nearly 76% in the past decade. And while some may eventually complete a college degree, many will not. For graduate students, the average student loan debt can range from $55,000-$75,000, depending on the degree program. Student loans are among the largest contributors to household debt. In 2017, 15% of adults (33 million) who had completed at least a high school degree had student loan debt, according to the Census Bureaus Survey of Income and Program Participation (SIPP), which provides detailed info about debt holders in the years preceding the pandemic (all subsequent SIPP estimates are limited to those with at least a high school degree). 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. 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). Richard Laycock, Senior content manager & insights editor. Student loans are designed to help future graduates tackle the costs of tuition, living expenses and everyday life so they can focus on putting their pencils to paper in school. Although the program is only applicable on Direct Federal Loans and not on Federal Family Education Loans or Perkins Loans, they can still be forgiven if you consolidate them into a Direct Federal loan. See Matthew S. Rutledge, Geoffrey T. Sanzenbacher, and Francis M. Vitagliano, "Do Young Adults with Student Debt Save Less for Retirement?" From living in the dorms to meeting new people, many students eagerly await their chance to begin the college experience. Paying Student Loans Again Could Feel Like a 5% Pay Cut Student Loan Debt Statistics Nearly 44 million Americans share $1.64 trillion in federal student loan debt. Of those who were making payments, the typical required monthly payment was between $200 and $299 per month. (Forbes, 2020) Student Loan Debt 2022 Facts & Statistics | Nitro - NitroCollege Infrastructures, International Standards for Financial Market Share sensitive information only on official, secure websites. These account for a substantial proportion of student loans, and when combined with low earnings from students while in school, result in ballooning student loan principals. The next step will be a public hearing on July 18 and a comment period during which stakeholders are encouraged to provide feedback. Average Loan Balance by Borrower Type: Undergraduate Student: $29,100 (Federal and private student loans) Graduate Students: $59,313 (Grad PLUS Loans only) Parent Borrowers: $29,528 (Not inclusive of private parent loans) Average Private Student Loan Balance Per Borrower: $32,100 Number of People With Outstanding Student Loans: 165.9 million (, 23% of bachelors degree recipients graduate with less than $20,000 in student loan debt. Set up an automatic withdrawals to avoid late fees. Other companies will offer a certain capped amount each year until the loan is paid off. Finding the right employer can help you reduce the amount of time needed to pay off a student loan significantly. Some borrowers were able to get ahead financially during the payment pause, either by paying down their student loan principal or tackling other goals such as buying homes and paying down other debts, with many seeing the pending loan forgiveness as money they were free to use elsewhere. 2023 MintLife Blog. Although those with advanced degrees were the most likely to hold and have higher student debt, those with some college but no degree were in a particularly difficult double bind: They accumulated debt during college but were yet to benefit from the greater earnings that come with a college degree. Explore census data with visualizations and view tutorials. It has reached $1.75 trillion. Student Loan Debt Statistics. With over 44 million Americans carrying a student loan debt, multiple generations of graduates are affected. So, just how bad is the student debt crisis? The typical amount of education debt in 2018 among those with any outstanding was between $20,000 and $24,999. 17.7% of student loan borrower are under the age of 25. 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. In 2020-21, some 38 percent of first-time, full-time degree/certificate-seeking undergraduate students were awarded loan aid, a 12 percentage point decrease from the percentage in 2010-11 (50 percent). Demographic data, including gender, ethnicity, and location. The Survey of Income Program Participation shows that many families that received government aid in 2017 lacked assets but had similar levels of unsecured debt. The annual growth rate for student loan debt has slowed significantly in recent years. While interest rate patterns are similar across most ethnicities, 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. And no matter your major, almost all college students have one thing in common they know college can be expensive. 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. (, In 2020-21, private student loans from credit unions, private lenders, and banks reached nearly $12 billion. Nearly 11% of students defaulted on their loans in 2017, and since 2004, the number of borrowers in default has more than quadrupled. This compares to one-third of those with smaller amounts of outstanding debt who had at least a bachelor's degree. But nearly as many borrowers 37% say they used the money to pay down other debts. the nation with a safe, flexible, and stable monetary and financial See David J. Deming, Claudia Goldin, and Lawrence F. Katz, "The For-Profit Postsecondary School Sector: Nimble Critters or Agile Predators?" The average student loan debt at public colleges and universities is $30,030 (based on the average amount of borrowing to obtain a bachelors degree). When comparing offers or services, verify relevant information with the institution or provider's site. For borrowers with federal student loans, the average student loan debt in America is $37,337, according to the Department of Education's most recent data from Q1 2023. The delinquency rate was lower among borrowers with a bachelor's degree (8 percent) or graduate degree (6 percent). This may reflect an inability to contribute to retirement accounts after meeting monthly student loan obligations. (, Female college graduates are 1.1% more likely to reach loan default within four years after college than male college graduates. More than 38 million student loan borrowers have student loan debt of $60,000 or less. With these figures, note that the number of borrowers overall nearly doubled from 2004 to 2017. The following states have the highest average student loan debt per borrower: More than 44 million student loan borrowers have student loan debt of $100,000 or less. Student Loan Debt Statistics | BestColleges What Is the Average Student Loan Debt in the US? - MoneyGeek Since 2007, the average debt has more than doubled. AI Anxiety Index: Are you worried about AI replacing jobs? DON'T MISS: Want to be smarter and more successful with your money, work & life? (, In the class of 2020, 55% of students graduating from public four-year schools had student loan debt. Tens of millions of federal student-loan borrowers will soon owe monthly payments for the first time in more than . Amount of student debt in default (more than 90 days): 6.5%. Borrowers over 60 have jumped their borrowing by more than 1,400% since 2004. This included 23 percent who borrowed with credit cards, 4 percent with a home equity line of credit, and 11 percent with some other form (table 25). The Biden administration agreed not to extend the three-year moratorium on payments as part of the debt ceiling deal it cut with Republicans, so the almost 27 million borrowers who have a total of . . Journal of Economic Perspectives 26, no. To understand how student loan repayment affects borrowers, read through these stats: Like many other things, student loan debt does not affect everybody equally. Shelter costs are up around 8% in June compared to the previous year. This may help you cut into your debt before it grows, especially due to interest. Of those who are making payments, the typical monthly payment . If youre already out of school, there are many different debt payoff methods you can choose from to help you pay off your student loan debt. Collectively, 45 million student loan borrowers owe $1.6 trillion in federal and private student loan debt. The Heroes Act gives the Secretary of Education the authority to "waive or modify" federal student financial aid rules in the event of a national emergency in this case, the Covid-19 pandemic. Return to text, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue N.W., Washington, DC 20551, Last Update: H.8, Assets and Liabilities of U.S. Among those with over $15,000 of education debt, two-thirds had at least a bachelor's degree and one-third had a graduate degree. Of those, 20 million would have had their remaining student debt . Type of education debt (by whose education funded) What's the Financial Condition of Homes Getting Government Benefits? 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. Do women or men have more student debt? This included 22 percent of college attendees who still owed money and 21 percent who already repaid their education debts. Plus, volunteer work will look great on your resume. (, On average, private school students graduate with over $5,000 more in student debt than their public school counterparts. He holds a BA in journalism and media from Rutgers University. Among adults with the same level of education, those with outstanding student loan debt were less likely to say they were doing okay financially. Browse our collection of stories and more. Whether youve graduated, have a child in school, or are looking to pay off your student loans while in college, you may be wondering how to get rid of student loan debt.If possible, it may be best for you to start making payments while still in school. system. (, The average amount of student loan debt forgiven through the PSLF program is over $97,000. Lock Based on the federal student loan portfolio, the largest concentration of student loan borrowers is 25 to 34 years-old, followed by the 35-49 age group. Opinions expressed by Forbes Contributors are their own. Since 2004, students under 30 have sharply increased in number of borrowers from 11.3 million to 16.8 million today. Click here to read full Terms of Service. As of November 30, 2020, here are the latestpublic service student loan debt statistics: Public Service Loan Forgiveness cumulative borrowers:1,378,000, Borrowers who submitted applications:227,382, % of applications denied due to payments that dont qualify: 56%, % of applications denied due to missing information: 26%, Borrowers who have received student loan forgiveness: 3,776, Total dollar amount forgiven:$290.4 million, Average student loan balance forgiven: $76,906. Similarly, more than 60% of both non-Hispanic Black respondents and Hispanic respondents also used that money to shrink debt compared to less than 50% of non-Hispanic White respondents. Average Student Loan Debt & Statistics 2022 | ELFI Student Debt: What it Means, How it Works, Forgiveness. Looking at trends since 2004, youll see that the majority of borrowers are having trouble decreasing their student loan balances. Some content on this site is available in several different electronic formats. At-a-glance: Average consumer debt statistics. The New York Fed statistics of student loan debt show the average debt in 2020 exceeded $37,500. Foreign Banks, Charge-Off and Delinquency Rates on Loans and Leases at Here is the total outstanding debt and the total number of borrowers as of 2022 for each loan status according to Federal Student Aid: Regardless of current loan status, many borrowers deal with repaying their student loans well after they leave college. Below, youll find the answers to some of the most common student loan debt questions. Stay on top of your student loans and avoid unnecessary interest by paying your loan installments by their due dates. The share of black and Hispanic borrowers who were behind on their loans was higher than the overall share of borrowers who were behind (figure 34). Return to text, 40. finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. Checks), Regulation II (Debit Card Interchange Fees and Routing), Regulation HH (Financial Market Utilities), Federal Reserve's Key Policies for the Provision of Financial Student loan debt has become the second-largest category of debt in the United States, rising to $79 billion in 2018 and $29 billion in the first quarter of 2019 alone.