Lori Meadows
Student loan debt is a significant issue in the United States, with Americans owing about $1.6 trillion to $1.81 trillion as of 2024 and 2025, respectively. This debt is held by about 42.5 million Americans, with an average federal student loan debt of $39,075 as of March 2025. The monthly repayment amounts vary, with 60% of borrowers paying up to $300, 20% paying less than $100, and only 6% paying over $1,000. As of Q2 2025, 10.16% of student loan debt was delinquent or past due by more than 90 days, and 20% of borrowers are behind on their repayments. Among federal student loan borrowers who completed a bachelor's degree in 2015-2016, the average amount owed as a percentage of the amount borrowed four years later was 78%, with Black bachelor's degree completers being the only racial/ethnic group whose average amount owed exceeded 100% four years after graduation.
| Characteristics | Values |
|---|---|
| Total student loan debt | $1.81 trillion |
| Number of Americans with student loan debt | 42.5 million |
| Average monthly payment | $300 |
| Percentage of borrowers paying up to $300 per month | 60% |
| Percentage of borrowers behind on loan repayments | 20% |
| Percentage of student loan debt in serious delinquency | 10.16% |
| Number of borrowers in default | 5 million+ |
| Percentage of borrowers in repayment and current on loans | 38% |
| Number of borrowers in deferment or forbearance | 13.3 million |
| Percentage of borrowers enrolled in the SAVE repayment plan | 24% |
| Percentage of borrowers with a postgraduate degree owing $100,000 or more | 26% |
| Percentage of all borrowers owing $100,000 or more | 1% |
| Percentage of first-time, full-time undergraduate students awarded loan aid in 2020-21 | 38% |
| Average annual loan amount for first-time, full-time undergraduate students | $7,700 |
| Average amount owed as a percentage of the amount borrowed 4 years after graduation | 78% |
| Racial/ethnic group with the highest average amount owed as a percentage of the amount borrowed | Black (105%) |
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What You'll Learn
Student loan debt totals
Student loan debt is a significant issue in the United States, with the total debt reaching staggering amounts in recent years. As of the first quarter of 2025, student loan debt in the US totalled $1.81 trillion, held by about 42.5 million Americans. This figure includes both federal and private student loans. The average federal student loan debt per person stood at $39,075, a record high, and has been growing by roughly 1% per quarter since 2013.
The student loan debt crisis has been exacerbated by high delinquency rates. As of the second quarter of 2025, 10.16% of student loan debt was already 90 days or more past due or seriously delinquent. During the same quarter, 13.03% of student loan debt became 30 days or more past due, and 12.88% became seriously delinquent. The rate of serious student loan delinquencies is roughly double that of credit card debt, indicating the severity of the issue.
The COVID-19 pandemic also played a role in the student loan debt crisis. Federal student loan payments were paused for 3.5 years due to the pandemic, and when payments resumed in October 2023, about half of the borrowers in repayment (around 17.8 million) were current on their loan payments as of January 31, 2024. However, nearly 30% of borrowers, accounting for about $290 billion in loans, were past due on their payments.
The student loan debt crisis disproportionately affects certain demographics. Women, for instance, tend to have higher monthly student loan payments but lower incomes compared to men, making it more challenging for them to keep up with repayments. Young college graduates with student loans also report higher financial struggles than those without. Additionally, Black bachelor's degree completers are the only racial/ethnic group whose average amount owed four years after graduation was greater than 100% of the amount borrowed, indicating systemic disparities.
The rising cost of higher education and increasing numbers of young adults attending college have contributed to the surge in student loan debt over the last decade. As of 2024, Americans owed about $1.6 trillion in student loans, a 42% increase compared to a decade earlier. While student loans can make education more accessible, the debt burden often weighs heavily on borrowers' financial well-being.
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Average monthly payments
Student loan debt is a significant issue in the United States, with a total debt of $1.81 trillion as of the first quarter of 2025, affecting about 42.5 million Americans. The average federal student loan debt held by Americans as of the quarter ending in March 2025 was $39,075, a record high that has grown by roughly 1% per quarter since 2013.
Regarding monthly payments, 60% of borrowers pay up to $300 per month, with 20% paying less than $100, 24% paying between $100 and $199, and 16% paying between $200 and $299. Only a small percentage, 6%, have monthly payments exceeding $1,000. These payments can be a significant burden, particularly for women and people of color, who often face a gender income gap, and for whom student loan debt is the second-largest type of debt after mortgages.
Delinquency rates for student loans are high, with 20% of borrowers falling behind on their repayments. As of the second quarter of 2025, 10.16% of student loan debt was already 90 days or more past due or seriously delinquent, and 12.88% became seriously delinquent during that quarter. The rate of serious delinquency for student loans is roughly double that of credit card debt and higher than any other type of debt.
The COVID-19 pandemic also impacted student loan repayments. Federal student loan payments resumed in October 2023 after a 3.5-year pause, and as of January 2024, about half of borrowers in repayment (around 17.8 million) were current on their loan payments. However, nearly 30% were past due, and the rest were not expected to make payments due to deferment or forbearance.
Additionally, it's worth noting that age and educational level play a role in student loan debt. Among adults under 40 with a four-year college degree, 36% have outstanding student loan debt. Adults with postgraduate degrees are more likely to have higher amounts of debt, with 26% owing $100,000 or more in 2023, compared to 9% of all borrowers. While student loans can provide access to higher education and potentially higher earnings, they also contribute to financial struggles for many young college graduates. Furthermore, Black bachelor's degree holders are the only racial/ethnic group that, on average, owes more than they originally borrowed four years after graduation.
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Delinquency rates
In the second quarter of 2025, 10.16% of student loan debt was already seriously delinquent, with payments 90 days or more overdue. During that quarter, 13.03% of student loan debt became 30 days or more past due, and 12.88% became seriously delinquent. The rate of serious student loan delinquency is roughly double that of credit card debt and far higher than any other type of debt.
To address delinquency, the U.S. Department of Education has implemented various measures, including resuming collections on defaulted federal student loans and providing clear information about repayment options. They have also promoted the use of repayment plans, such as the Saving on a Valuable Education (SAVE) plan, which offers borrowers lower payments. However, there is an application backlog for these plans, and some borrowers may be unaware of their eligibility for income-driven repayment options.
It is important to note that delinquency rates do not include borrowers who are in an interest-free forbearance or deferment period. These options allow borrowers to temporarily postpone payments due to financial difficulties or other circumstances. As of 2024, nearly 30% of borrowers, accounting for about $290 billion in loans, were past due on their payments.
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Loan forgiveness
Student loan forgiveness is a pressing issue, with student loan debt totalling $1.81 trillion and affecting 42.5 million Americans. The delinquency rate has skyrocketed since pandemic-era relief expired, with 20% of borrowers behind on their loan repayments. The Biden-Harris Administration has been criticised for putting taxpayers on the hook for irresponsible lending, with almost 10 million borrowers in default.
The US Department of Education has been taking steps to address this issue, including resuming collections on defaulted federal student loans. The Department has also been providing borrowers with clear information about their payment options and resources to assist them in selecting the best repayment plan. Additionally, the Department has been reminding borrowers of their obligations through email and social media campaigns.
There are several loan forgiveness programs available, including:
- Income-Driven Repayment (IDR) Plans: These plans base your monthly payment on your income and family size. If you repay your loans under an IDR plan, your remaining balance may be forgiven after a certain number of payments over 20 or 25 years.
- Public Service Loan Forgiveness (PSLF): This program is available to government and qualifying nonprofit employees with federal student loans. Eligible borrowers can have their remaining loan balance forgiven after making 120 qualifying loan payments on an IDR plan and 10 years of full-time public service work.
- Teacher Loan Forgiveness: Teachers employed full-time in low-income public schools may be eligible for up to $17,500 in loan forgiveness after teaching for five consecutive years.
- Total and Permanent Disability (TPD) Discharge: If you have a disability that severely limits your ability to work, you may be eligible for a TPD discharge, which means you don't have to repay your federal student loans.
- AmeriCorps Education Award: Participants who complete a term of national service in an approved AmeriCorps program are eligible for an education award that can be used to repay qualified student loans.
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Racial disparities
Several socioeconomic factors contribute to these racial disparities in student loan repayment. Black borrowers face wage and wealth inequities, with White bachelor's degree holders earning 25.5% more in median annual income. This income gap translates into a wealth gap, with White households having a higher homeownership rate of 71% compared to 50% for Black households. Additionally, Black borrowers are less likely to have private student loans, which can offer more flexible repayment options.
The repayment system itself also contributes to racial disparities. Many borrowers are unaware of their eligibility for income-driven repayment plans on federal loans, and servicers often fail to provide assistance or guidance. Instead, borrowers are steered towards suspended payment options that accumulate interest. The complex processes for exiting default further trap borrowers, as defaulted loans are currently ineligible for repayment plans. These systemic issues disproportionately affect Black borrowers, exacerbating the racial disparities in loan repayment.
Furthermore, Black borrowers are more likely to face barriers to completing their degrees and experience financial difficulties that put them at risk of falling behind on payments. This vulnerability is also shared by Hispanic or Latino borrowers, who, along with Black borrowers, are more likely to have difficulty repaying their loans than White borrowers. The interplay of socioeconomic factors, structural barriers, and systemic issues within the repayment process creates a cycle that perpetuates racial disparities in student loan repayment.
While the specific data varies, it is clear that racial disparities exist in student loan repayment. These disparities are influenced by socioeconomic factors, educational barriers, and systemic issues within the repayment process. Addressing these disparities requires targeted policy interventions and a comprehensive understanding of the underlying factors contributing to the unequal distribution of student loan debt across racial lines.
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Frequently asked questions
As of the second quarter of 2025, 38% of borrowers are current on their student loan repayments. 20% of borrowers are behind on their loan repayments.
60% of people pay up to $300 a month. 20% pay less than $100 a month, 24% pay between $100 and $199, and 16% pay between $200 and $299. Only 6% pay more than $1,000 a month.
Student loan debt is more common among college graduates. 36% of adults under 40 with at least a four-year college degree have student loan debt. Adults with a postgraduate degree are especially likely to have large amounts of student loan debt. 26% owed $100,000 or more in 2023, compared to 9% of all borrowers. Black bachelor's degree graduates owed more than 100% of the amount they borrowed four years after graduation, making them the only demographic to do so.
