Lana Oconnell
Student loan debt is a pressing issue in the United States, with millions of Americans struggling to repay their loans. As of 2025, the total student loan debt in the US is estimated to be between $1.6 trillion and $1.77 trillion, with the average undergraduate borrower owing around $29,000 to $30,000. The rising cost of education has made it challenging for many Americans to afford college without taking out loans, and the debt has caused financial difficulties and delayed important financial decisions for many borrowers. While 20% of US adults report having paid off their student loan debt, a significant number of borrowers are in default or delinquency, and many struggle to make monthly payments.
| Characteristics | Values |
|---|---|
| Total student loan debt in the US | $1.6 trillion to $1.77 trillion |
| Number of borrowers | 42.7 million to 43.6 million |
| Average debt per borrower | $29,300 to $38,000 |
| Percentage of borrowers in repayment | 38% |
| Percentage of borrowers in default | 11.6% |
| Percentage of borrowers who expect to pay off debt | 76% |
| Percentage of borrowers who say debt has impacted financial decisions | 59% |
| Percentage of borrowers who say debt has impacted mental health | 47% |
| Percentage of degree holders who say their degree was beneficial | 59% |
| Percentage of young college graduates with student loans | 48% |
| Percentage of young college graduates with loans finding it difficult financially | 25% |
| Percentage of college graduates with loans living comfortably | 29% |
| Percentage of bachelor's degree recipients with student debt (2022-23) | 50% |
| Percentage of undergraduate students accepting federal loans (single-year data) | 28.6% |
| Percentage of adults with undergraduate degrees with outstanding debt | 20% |
| Percentage of postgraduate degree holders with outstanding debt | 24% |
| Percentage of U.S. adults who have paid off student loan debt | 20% |
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What You'll Learn
Student loan debt is the second-highest consumer debt category
In 2023, 92.8% of all student loan debt was federal, with the remaining 7.2% belonging to private borrowers. Federal and private student loan debt combined decreased by $34.9 billion in 2023, with federal student loan debt alone decreasing by $32.3 billion. However, national student loan debt increased by 2.85% in the fourth quarter of 2024, with federal student loan debt increasing by 2.27%.
The high cost of student loans is a significant burden for many Americans. As of 2025, 20% of American adults with undergraduate degrees and 24% of postgraduate degree holders report outstanding student loans. Only 20% of US adults report having paid off their student loan debt. This disparity has led to an increase in student loan relief scams, with companies promising debt forgiveness or bogus refinancing offers that include excessive upfront fees.
The impact of student loan debt is far-reaching, with 42.7 million borrowers owing more than $1.6 trillion in student debt as of 2025. More than 5 million borrowers have not made a monthly payment in over 360 days, and 4 million borrowers are in late-stage delinquency. As a result, there could be almost 10 million borrowers in default in the near future, pushing the federal student loan portfolio towards a fiscal crisis.
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20% of US adults have paid off student loan debt
As of 2025, 20% of US adults have paid off their student loan debt. This is a notable figure, especially when compared to the percentage of US adults with outstanding student loan debt. According to recent statistics, 20% of American adults with undergraduate degrees have student debt, and this number increases to 24% for those with postgraduate degrees.
The distribution of student loan debt varies across different age groups. Among adults aged 18 to 29, 25% report having student loan debt, while this number decreases to 14% for 30 to 44-year-olds. Only 4% of those aged 50 and above have student loan debt. Younger adults are more likely to take out loans for their education, and as a result, they often carry this debt well into middle age.
The average amount of student loan debt also differs based on age. Federal borrowers under 25 years old owe an average of $14,160, while those between 25 and 34 years old have an average debt of $33,260. The average debt for borrowers with an associate's degree is $20,340, and it increases to $29,550 for those with a bachelor's degree. Adults with postgraduate degrees are especially likely to have higher student loan debt balances, with 26% of these advanced degree holders owing $100,000 or more.
The total student loan debt in the US is significant. As of June 2024, Americans owed about $1.6 trillion in student loans, with some sources citing a figure of $1.77 trillion as of 2025. This amount has increased at an average quarterly rate of 1.3% over the last decade. The rising cost of higher education has contributed to this increase, with tuition costs steadily climbing over the last 30 years.
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Student loan scams and bogus refinancing offers
As of 2025, 20% of U.S. adults report having paid off their student loan debt, while 20% of American adults with undergraduate degrees and 24% of postgraduate degree holders still have outstanding student loans. The total U.S. student loan debt is approximately $1.77 trillion, with the average undergraduate borrower owing $29,300.
- False Affiliation and Endorsements: Scammers often falsely claim affiliations with the Department of Education or official endorsements from consumer loan servicers. They may also feign special access to certain repayment plans, new federal loan consolidations, or loan forgiveness programs.
- Personalization of Solicitations: Fraudsters may use your personal details, such as your name, location, school, and job, to make their offers seem more legitimate and tailored to you. They do this to create a false sense of familiarity and lead you to assume they have access to your existing student loan debt information.
- Fake Promises and Urgent Calls to Action: Scammers often make exaggerated claims about their ability to quickly save you money or forgive your debt. They may create a sense of urgency, pressuring you to act fast without thoroughly reviewing the offer.
- Unofficial Communication Channels: Scammers may use unofficial email addresses or text messages to contact you. Be cautious if you receive messages from senders other than the official email addresses used by the Department of Education or its partners.
- Excessive Upfront Fees: Some bogus refinancing and consolidation offers may include excessive upfront fees. Legitimate refinancing options should not require you to pay additional fees to process your application.
- Requests for FSA ID Passwords: The U.S. Department of Education will never ask for your Federal Student Aid (FSA) ID password. Your FSA ID is like an electronic signature, and you should never share it with anyone.
If you suspect you have been scammed, take immediate action by changing your FSA ID, contacting your student loan servicer to revoke any unauthorized agreements, and notifying your bank to cancel any payments to fraudulent companies. Additionally, consider filing complaints with the Federal Trade Commission and the Consumer Financial Protection Bureau.
It is important to remember that you do not need to pay for assistance with student loan repayment or forgiveness. Legitimate loan servicers, such as those affiliated with the U.S. Department of Education, offer free services and resources to help borrowers navigate their federal student loans. Always verify the sender's email address, look out for suspicious messages, and be cautious of offers that seem too good to be true.
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42.7 million borrowers owe more than $1.6 trillion in student debt
Student loan debt is a significant issue in the United States, with approximately 42.7 million Americans carrying federal student loan debt. This figure represents about 12.5% of the country's population, according to census data. The total outstanding federal student loan debt is estimated to be around $1.6 trillion, with private student loans accounting for about 7-8% of the total debt. The average federal student loan debt balance is $39,075, while the total average balance, including private loan debt, may be as high as $42,673. The average undergraduate borrower owes around $29,300, and the debt amount varies with age and level of education.
The Biden-Harris Administration has been criticised for its handling of federal student loans, with accusations of putting taxpayers on the hook for irresponsible lending. In October 2023, Congress mandated that student and parent borrowers begin repaying their loans, but the administration refused to lift the collections pause, causing confusion among borrowers. The previous administration's failure to process applications for income-driven repayment plans and their promotion of illegal loan forgiveness schemes have contributed to rising delinquency and default rates.
The U.S. Department of Education's Office of Federal Student Aid (FSA) resumed collections of defaulted federal student loans in May 2025, after a pause since March 2020. The FSA is committed to keeping borrowers informed about their payment options and providing resources to help them select the best repayment plan. However, there are concerns that millions of borrowers could default on their loans in the coming months, pushing the federal student loan portfolio towards a fiscal crisis.
While some Americans advocate for student loan debt cancellation, others oppose it. A significant number of borrowers are not currently making payments, with many in delinquency or default. The average student loan debt growth rate outpaces tuition costs, and a small percentage of borrowers are in a grace period or still in school. Additionally, borrowers with higher levels of education tend to have higher student loan debt balances, and there are gender and racial disparities in debt amounts.
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51% of college undergraduates finish college with student loan debt
Student loan debt is a significant issue in the United States, impacting millions of borrowers. As of 2025, the total student loan debt in the country is estimated to be between $1.75 trillion and $1.814 trillion, with federal student loan debt accounting for about 91-92% of this amount. The average undergraduate borrower owes around $29,000 to $35,210, and this debt burden has significant implications for their financial future.
Among college undergraduates, 51% finish their studies with student loan debt. This percentage translates into millions of individuals starting their professional lives with a considerable financial burden. The high cost of college, which has been steadily increasing over the years, is a critical factor contributing to this debt crisis. Tuition costs at public four-year colleges, for instance, have risen from $4,160 to $10,740 in the last three decades.
The situation is even more challenging for specific demographic groups. Women and people of color, particularly Black adults, are more likely to have student loan debt and higher balances than their white male counterparts. According to statistics, 49.3% of female bachelor's degree holders accept federal student loans, compared to 41.9% of male bachelor's degree holders. Among Black adults, 50% have student loan debt, with an average balance of $9,800, while the percentage for white adults is 44%, with an average balance of $8,700.
The Biden-Harris Administration has attempted to address the student loan debt crisis by implementing forgiveness programs and alternative repayment options. Through these initiatives, nearly 5 million Americans have received forgiveness for approximately $168.5 billion in federal debt. However, there are also concerns about irresponsible lending practices and the potential strain on taxpayers. As of 2025, it is estimated that 38% of borrowers are current on their student loan repayments, while more than 5 million borrowers have not made a monthly payment in over a year, resulting in a default status.
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Frequently asked questions
20% of U.S. adults report having paid off their student loan debt.
38% of borrowers are in repayment and current on their student loans.
36% of Americans under 40 with at least a four-year college degree have outstanding student loan debt.
50% of bachelor’s degree recipients in 2022-23 graduated with student debt.
