Key takeaways

  • Although borrowing year-over-year has leveled off since early 2024, the national student debt load has been steadily increasing over the past decade.
  • The Saving On A Valuable Education (SAVE) Plan was temporarily blocked by the federal appeals court in July 2024 as the legality of the plan was under discussion.
  • Borrowers can explore income-driven repayment, forbearance and public service loan forgiveness programs to address payment affordability.

More than half of U.S. adults who have borrowed for their education (59 percent) say that student loan debt has caused them to put off making important financial decisions, according to Bankrate’s Financial Milestone Survey.

Despite this, nearly 6 in 10 degree holders who borrowed for their education (59 percent) reported that their degree has been beneficial to both their salary and career growth. Over the past 10 years, college costs have continued to trend upward, a likely explanation for why so many rely on student loans.

As of today, more than 43 million Americans hold federal student loans, with a collective balance exceeding $1.7 trillion. Since federal student loan payments have resumed, many Americans are struggling to fit this bill into their monthly budgets. Luckily, there are some options available that can make payments more manageable.

Key student loan debt statistics

Student loan debt is a national crisis that affects millions of Americans. Though the Department of Education has led efforts to tackle this issue in recent years, rising education costs make it hard for many to afford college without loans.

Education Icon
  • In June, 43.6 million Americans held federal student loan debt, with an average balance of $38,000 per borrower.
  • In total, the U.S. has a collective balance of over $1.7 trillion in student loans.
  • Student loans are the second-largest type of consumer-generated debt behind mortgages, accounting for 9 percent of the nation’s consumer debt.
  • 51 percent of college undergraduates finish college with student loan debt.
  • The average college student borrows $29,400 in loans to pay for their degrees.
  • 30 percent of Americans who currently have student loan debt said they don’t know if they qualify for any student loan forgiveness, according to Bankrate’s Student Loans Presidential Elections Survey

How much student loan debt is there?

Student loan debt is the second largest form of consumer lending debt in the U.S., affecting more than 43 million Americans. But as college costs continue to increase, so does general concern about college affordability and the need for loans to fill in the blanks.

According to Bankrate’s Student Loans and Financial Regret Survey, more than half of student loan borrowers (58 percent) think the cost of higher education is too high. More than 2 in 5 (44 percent) Americans say students are not fully aware of the negative consequences borrowing can have before taking out loans.

However, 30 percent of Americans said that student loan borrowers should still repay their debt in full.

That’s even as 29 percent of adults later felt that student loan debt is a national crisis, Bankrate’s separate Student Loans and Presidential Elections Survey found.

Lightbulb Icon
Keep in mind

Students may take out loans for reasons other than paying tuition. Student loans can be used to cover living expenses, books and course materials, transportation and more.

The U.S. student debt crisis

Data from the Federal Reserve shows that the total outstanding student loan debt has increased by roughly 52 percent since 2013.

Year Total outstanding student debt (in millions)
2013 $1,145,550.75
2014 $1,235,751.47
2015 $1,320,248.14
2016 $1,405,332.16
2017 $1,488,895.48
2018 $1,566,903.43
2019 $1,637,880.71
2020 $1,693,860.24
2021 $1,733,415.18
2022 $1,764,067.41
2023 $1,737,181.66
2024 (YTD) $1,753, 333.67

Source: The Federal Reserve

Student debt is the second largest form of consumer debt, accounting for 9 percent of the nation’s household debt as of the third quarter of 2023.

Student loan debt and the end of the repayment pause

The Supreme Court shot down the Biden administration’s $20,000 federal forgiveness plan in July 2023. The Supreme Court’s ruling also meant the end of the three-year administrative forbearance on federal student loan payments, a decision that has been met with mixed feelings.

More than 1 in 4 Americans(27 percent) believe that the federal government hasn’t provided enough financial support to borrowers, according to Bankrate’s 2024 student loan poll.

Borrowers who are struggling to make their payments aren’t completely out of luck. The Department of Education has implemented a 12-month “on-ramp” transition, which will prevent servicers from reporting missed payments to the credit bureaus or placing borrowers who miss payments on default until September 30, 2024.

“Before the pandemic, tens of millions of borrowers and their families were crushed by overwhelming and unmanageable student loan balances,” Ella Azoulay, research and policy analyst at the Student Borrower Protection Center (SBPC) says.

“While the student debt crisis is known to be a barrier preventing borrowers from achieving financial stability and other milestones, such as homeownership, the payment pause helped borrowers improve their credit and get out of default,” she adds.

Billions in federal debt canceled through administrative policy amendments

Despite Biden’s mass forgiveness proposal getting shut down, millions have had some form of debt relief. Through implementing provisions to existing federal forgiveness plans, the administration has reported forgiving 168.5 billion in federal debt for nearly 5 million Americans.

The relief is made possible under The Higher Education Act, which allows for federal forgiveness plans and alternative repayment options. “These improvements have been in the works for since day one of the Administration as part of the Department’s efforts to overhaul loan servicing and implement significant improvements to all of its loan forgiveness programs, including PSLF,” reads an Education Department press release.

Forgiven student debt to date by program

  • Income-driven repayment plans: $51 billion for over 1 million borrowers
  • Borrower defense: $28.7 billion for over 1.6 million borrowers
  • Total and permanent disability: $14.1 billion for over 548,000 borrowers
  • SAVE Plan: $5.5 billion for 414,000 borrowers

Student loan repayment plans

The following repayment plans are available to federal student loans only. Repayment plans for private loans vary from lender-to-lender.

Key terms

Fixed payment repayment plans
These include the Standard Repayment, Graduated Repayment and the Extended Repayment plans. They are repaid in 10 to 30 years, depending on the plan, and your monthly bill is based on your outstanding balance, repayment term and interest rate.
Income-driven repayment (IDR) plans
These include the Saving on a Valuable Education (SAVE), Pay As You Earn (PAYE) Repayment, Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR) plans. With these, your payments are based on factors such as your income and family size and can be as low as $0.
Public Service Loan Forgiveness program (PSLF)
With PSLF, you can get the remainder of your federal student loan balance forgiven after making 120 qualifying payments. To qualify for this program, you must work full-time at an eligible not-for-profit organization or be employed by a U.S. federal, state, local or tribal government agency and be enrolled in an IDR plan.

Individual student loan debt statistics

Here’s how student loan debt in the U.S. impacts individual borrowers.

Education Icon
  • 36 percent of older Gen Zers have student loan debt.
  • Millennials owe the largest student share of student loans out of all generations, with 3.87 million millennials owing between $20,000 and $40,000.
  • Roughly 1 in 4 Americans who currently have student loan debt (24 percent) say they don’t expect that they’ll ever be able to pay off their debt, according to Bankrate’s Student Loans Presidential Elections Survey.
  • Tuition and fees increased across the board for both two-and four-year institutions when compared to the previous year. Public two-year schools saw an increase of 2.6 percent, while public four-year schools saw a 4.0 percent increase.
  • The average in-state student at a four-year public institution spends $23,000 for housing, tuition, food and fees per academic year. The average private university student spends $53,970.
  • The average student borrower takes 20 years to repay their student loan debt.

Americans cite debt, rising cost of living as negative contributors to mental health

Bankrate’s Money and Mental Health Survey found that 47 percent of Americans who say their mental health has been negatively impacted by financial concerns name debt as the primary culprit. Just like any other kind of debt, student loans can have a significant impact on a borrower’s mental health, increasing anxiety and stress.

According to a survey by ELVTR, 54 percent of respondents reported mental health issues related to student debt, including the following:

  • 56 percent reported experiencing anxiety.
  • 32 percent had depression.
  • 20 percent experienced sleeping problems.
  • 17 percent reported panic attacks.

Additionally, 10 percent of respondents said they had other mental health issues not listed above.

Federal student loan debt statistics

Federal student loans are offered by the U.S. Department of Education rather than private lenders. They’re a good first choice for any student considering student loans, and they comprise more than 90 percent of the U.S. student debt portfolio.

Student loan debt by loan type

All new loans originated by the federal government are part of the Direct Loan program: Direct Subsidized Loans, Direct Unsubsidized Loans, grad PLUS loans, parent PLUS loans and Direct Consolidation Loans. Because of this, Direct Loans make up the greatest portion of the federal student loan portfolio. However, there are still borrowers who are paying off older Perkins or Federal Family Education Loan (FFEL) Program loans.

Here’s how total loan amounts have changed for each loan type in the past three years:

Direct Subsidized (in billions) Direct Unsubsidized (in billions) Grad PLUS (in billions) Parent PLUS (in billions) Perkins (in billions) Consolidation (in billions)
2020 – Q1 $279.6 $516.3 $75.3 $95.6 $5.9 $542.4
2020 – Q2 $282.9 $528.5 $78.8 $99.4 $5.6 $547.7
2020 – Q3 $282.3 $529.1 $79.5 $98.3 $5.4 $550.2
2020 – Q4 $285.7 $539.8 $82.8 $100.8 $5.2 $552.1
2021 – Q1 $285.2 $539.4 $82.7 $100.3 $4.9 $552.6
2021 – Q2 $289.8 $552.7 $86.3 $103.6 $4.7 $554.7
2021 – Q3 $288.7 $553.5 $87.3 $102.8 $4.3 $554.5
2021 – Q4 $291.5 $563.5 $90.7 $105.4 $4.4 $555.1
2022 – Q1 $290.9 $562.5 $90.6 $104.8 $4.2 $553.3
2022– Q2 $293.1 $571.9 $94.0 $107.3 $4.2 $549.2
2022 – Q3 $291.9 $571.5 $94.9 $106.3 $4.0 $548.7
2022 – Q4 $294.3 $579.3 $97.9 $108.5 $3.9 $550.6
2023 – Q1 $293.0 $574.1 $96.7 $107.6 $3.8 $560.3
2023 – Q2 $296.2 $584.9 $100.7 $111.7 $3.7 $547.3
2023 – Q3 $295.4 $585.4 $101.9 $111.3 $3.7 $536.2
2023 – Q4 $295.6 $588.5 $104.0 $111.3 $3.6 $498.3
2024 – Q1 $293.3 $585.2 $103.4 $107.2 $3.5 $505.9
2024- Q2 $295.4 $549.9 $107.5 $109.8 $3.4 $509.2

Source: U.S. Department of Education

Student loan debt by state

The three states with the lowest outstanding student debt per borrower are:

  • North Dakota $29,312
  • Alaska $35,346
  • Wyoming $32,018

In each of these states, the average student debt per borrower comes in just under $33,000.

The three states with the highest student debt per borrower are:

  • Maryland – $43,298
  • West Virginia – $39,843
  • Florida – $38,857

In these states, the average debt per student is near $41,000. Washington, D.C., has the highest average debt per student overall at $54,146.

The table below summarizes each state’s total federal student loan balance, the number of borrowers and the average federal student debt per borrower as of March 31, 2024

Location Average federal debt (per borrower)
Alabama $37,390
Alaska $35,346
Arizona $35,511
Arkansas $33,624
California $37,810
Colorado $37,113
Connecticut $36,481
Delaware $38, 031
District of Columbia $54,146
Florida $38,857
Georgia $41,652
Hawaii $38,118
Idaho $33,167
Illinois $38,645
Indiana $32,941
Iowa $30,719
Kansas $32,838
Kentucky $33,410
Louisiana $34,570
Maine $33,845
Maryland $43,298
Massachusetts $35,329
Michigan $36,567
Minnesota $34,053
Mississippi $36,904
Missouri $35,452
Montana $33,437
Nebraska $32,310
Nevada $34,407
New Hampshire $34,932
New Jersey $36,899
New Mexico $34,136
New York $38,410
North Carolina $38,439
North Dakota $29,312
Ohio $25,696
Oklahoma $34,767
Oregon $31,809
Pennsylvania $37,507
Puerto Rico $47,711
Rhode Island $36,010
South Carolina $31,111
South Dakota $32,908
Tennessee $38,326
Texas $31,356
Utah $36,683
Vermont $33,456
Virginia $33,438
Washington $37,662
West Virginia $39,843
Wisconsin $36,292
Wyoming $32,018
Other $32, 432
Not Reported $30,567

Source: U.S. Department of Education

Federal student loan debt by age

As of the second quarter of 2024, Gen X, followed by baby boomers, are among the most affected generations by student loan debt. Please note that these percentages are approximations based on the provided data, and the sum of the percentages may not add up exactly to 100 percent due to rounding.

Private student loan debt statistics

Private student loans are offered by online lenders, banks and credit unions. While private student loans should only be taken out once federal aid potential has been exhausted, they still account for almost a tenth of student loan debt in America.

Here’s how private student loans contribute to the overall levels of student debt in the U.S., according to data from College Board’s Trends in College Pricing report.

Education Icon
  • Private loans made up 15 percent of total borrowing for the 2022-23 academic year.
  • 9 percent of bachelor’s degree recipients graduated from a four-year public school with an average of $34,600 in private loans.
  • 13 percent of bachelor’s degree recipients graduated from a four-year private school with an average private debt of $44,600.
  • Last year, undergraduate students collectively borrowed around $14.7 billion in non federal student loans.
  • Private student loans borrowed for the 2022-23 academic year (15%) were the highest they’ve been since the 2007-08 academic year (25%).

Student loan debt by degree

Advanced degrees are expensive, but the investment could pay off. Here’s what you need to know before taking out graduate student loans.

Education Icon
  • Based on the latest NCES data, 72.5 percent of post-baccalaureate students borrowed to fund their education.
  • Based on the most recent data available, the average graduate student borrowed nearly $65,000.
  • The average debt for those with Master’s degrees is $58,490.
  • The average debt for those with a Ph.D. is $107,720.
  • 73.8 percent of master’s degree students borrow student loans.
  • Those who earn an advanced degree earn up to 45 percent more on a weekly basis than those with just a bachelor’s degree, according to BLS data.
  • Those with advanced degrees also experience lower unemployment levels.

Student loan FAQs

  • Student loans are a type of installment loan specifically designed to cover college-related expenses. These include tuition and fees, room and board, course materials, books, transportation and more. These loans can be federal or private.
  • The process for getting a student loan will depend on the type of student loan you’re applying to.To apply for federal student loans, you’ll need to fill out the FAFSA. To do this, you’ll have to visit StudentAid.gov and provide the following information:
      • Your Social Security number.
      • Your driver’s license.
      • Your household size and income.
      • Your school’s information.
    The form will likely take about 30 minutes to complete, after which both you and your school will get a document known as the Student Aid Report (SAR) to determine your eligibility for loans.
    To apply for private student loans, you’ll need to do the following:
      • Calculate how much you need.
      • Check your credit score.
      • Research and compare lenders.
      • Gather all of the necessary information, including your Social Security number, proof of ID, proof of income, statements of debts and assets and your school’s information.
      • Prequalify with at least three lenders to see which one gives you the best offer without hurting your credit.
      • Pick a lender and fill out an official application.
      • Add a co-signer if you don’t have a job or another source of income.
      • Submit your application and wait for a decision.
    For more details on how to apply for both federal and private student loans, check out the full guide to getting a student loan.
  • Federal student loans have a standard repayment term of 10 years. However, depending on your repayment plan and type of loan, you may extend this term to up to 30 years. Private student loans, on the other hand, have repayment terms ranging from five to 20 years.