Lori Meadows
Student loan debt is a significant issue in the United States, with Americans owing approximately $1.6 trillion in student loans as of June 2024, a 42% increase over the previous decade. The rising cost of higher education has resulted in an increase in student loan debt, with more than half of students graduating with debt. This debt is particularly prevalent among young adults, with 25% of 18-29-year-olds and 14% of 30-44-year-olds reporting student loan debt. Additionally, women and people of color are more likely to have higher student loan balances than their white male counterparts. The pause on federal student loan payments during the COVID-19 pandemic provided temporary relief, but as payments resumed in 2023, the share of borrowers making payments returned to pre-pandemic levels.
| Characteristics | Values |
|---|---|
| Percentage of adults with student loan debt | 19% |
| Percentage of adults with student loan debt aged 18-29 | 25% |
| Percentage of adults with student loan debt aged 30-44 | 14% |
| Percentage of adults with student loan debt with a 4-year college degree | 36% |
| Percentage of adults with student loan debt with a postgraduate degree | 24% |
| Percentage of Black adults with student loan debt | 50% |
| Percentage of White adults with student loan debt | 44% |
| Percentage of Hispanic/Latino adults with student loan debt | 37% |
| Average student loan debt for a bachelor's degree | $29,400 |
| Average student loan debt for federal borrowers under 25 years old | $14,160 |
| Average student loan debt for borrowers between 25 and 34 years old | $33,260 |
| Average student loan debt for borrowers over 62 years old | $42,780 |
| Average student loan debt for borrowers with an associate's degree | $20,340 |
| Average student loan debt for all borrowers | $29,300 |
| Total student loan debt in the US | $1.77 trillion |
| Total student loan debt in the US as of June 2024 | $1.6 trillion |
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What You'll Learn
Student loan debt by age
Student loan debt is a significant issue in the United States, with Americans owing around $1.6 trillion in student loans as of 2024. This figure represents a 42% increase compared to a decade earlier, driven by rising higher education costs and increasing numbers of young adults attending college. The cost of college has steadily increased over the last 30 years, with tuition costs at public four-year colleges more than doubling after adjusting for inflation. As a result, student loans have become a necessity for many aspiring students.
When examining student loan debt across different age groups, several trends emerge. Firstly, younger Americans, specifically those aged 25 to 34, represent the demographic where student debt is most prevalent. This trend is expected, as individuals in this age bracket are likely recent college graduates. Within this age group, federal borrowers between 25 and 34 years old have an average debt of $33,150 to $33,260. Additionally, a third of adults in this age range have federal student loan debt, according to data from The Washington Post.
Moving to older age groups, 35- to 49-year-olds owed the second-highest amount of student loan debt as of Q2 2024, with a total debt of $489.6 billion. This age group also experiences competing financial commitments, such as mortgages, family responsibilities, and graduate student loans for those pursuing advanced degrees. The average student loan debt for 40- to 49-year-olds is $44,798, reflecting the cumulative impact of interest rates and additional loans.
Adults aged 50 and above represent the final category in our analysis. While adults in their 50s and 60s comprise a smaller percentage of total student loan debt, it is important to note that they still carry a significant burden. In Q2 2024, 50- to 61-year-olds owed $284.5 billion in student loans. Moreover, the average 62-year-old federal borrower owes $42,780 in federal educational debt, including Parent PLUS loans. This data suggests that student loan debt can persist well into an individual's later years.
It is worth noting that the impact of student loan debt extends beyond the financial realm. Young college graduates with student loans often face challenges in achieving financial stability and building wealth. They may struggle to save for emergencies, make major purchases, or invest in their future. Additionally, student loan debt can influence career choices, with borrowers potentially seeking higher-paying jobs to manage their debt, even if those jobs are not aligned with their interests or passions.
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Student loan debt by race
In the United States, student loan debt is a significant issue, with Americans owing about $1.6 trillion in student loans as of June 2024. This burden is not equally distributed, and people of colour, particularly Black Americans, are disproportionately affected by student loan debt.
Black borrowers are more likely to indicate that they would use loan forgiveness to pay off their debt. Student loan debt forgiveness would immediately increase the wealth of Black Americans by up to 40%. There is a notable gap in wealth and student debt between Black and White Americans. Black college attendees have a net worth that is $8,500 less than their White peers. White bachelor’s degree holders earn 25.5% more in median annual income than Black degree holders. Additionally, 60% of indebted Black student loan borrowers do not have a savings account.
Black students borrow more than White students for graduate and professional education, and they are overrepresented in for-profit institutions, making them more likely to fall victim to predatory debt. Black and Latino/Latina students are less likely to take out private loans but are more likely to struggle with repayment. Black students are four times as likely to have difficulty repaying private debt compared to White students.
The racial wealth gap results in higher costs for private student loans for borrowers of colour, as they may be charged higher interest rates due to lower credit scores. Private loans also lack the safeguards that federal loans offer, such as protection from default due to economic hardship.
The issue of student loan debt among Black Americans is further exacerbated by the historical exclusion of Black individuals from higher education. The intersection of race and gender also plays a role, with Black women experiencing both sexism and racism and facing unique challenges with student debt.
While young adults are typically associated with student loan debt, it is important to note that adults with postgraduate degrees are especially likely to have significant debt. About 26% of these advanced degree holders owed $100,000 or more in 2023, compared to 9% of all borrowers.
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Student loan debt by degree type
The percentage of adults paying off student loans varies depending on the country, age, and degree type. Here is an overview of student loan debt by degree type:
Undergraduate Degrees
In the United States, 20% of adults with undergraduate degrees have outstanding student debt. Among adults under 40 with a four-year college degree, 36% have student loan debt. The cost of college has steadily increased over the years, leading to a rise in student loans.
Postgraduate Degrees
Postgraduate degree holders report higher percentages of student loan debt. In the US, 24% of postgraduate degree holders have outstanding student loans. Adults with postgraduate degrees are more likely to have larger amounts of student loan debt. About 26% of these advanced degree holders owed $100,000 or more in 2023, compared to 9% of all borrowers.
Associate Degrees
Several associate degree majors can carry more student debt than bachelor's degree majors. For example, the Alternative and Complementary Medicine and Medical Systems associate degree has a median debt of $38,533. In contrast, the Biological and Physical Sciences associate degree has a lower median debt of $7,591.
Bachelor's Degrees
The median debt for a bachelor's degree varies depending on the major. The Behavior Sciences major has the highest median debt at $42,822, while the Science Technologies/Technicians major has the lowest median debt at $9,529.
Master's Degrees
Master's degree programs can also lead to significant student loan debt. Advanced Dentistry and Oral Sciences at the master's level has a median debt of $158,155. On the other hand, Romance Languages, Literatures, and Linguistics is a lower-debt option, with a median debt of $13,664.
Doctoral Degrees
Doctoral degree debt varies widely depending on the field of study. Pharmacy, Pharmaceutical Sciences, and Administration doctoral degrees have a median debt of $310,330. In contrast, Area Studies doctoral degrees have a much lower median debt of $29,644.
UK Perspective
In the United Kingdom, the average student loan debt varies across the nations. Students graduating from English universities in 2024 will have an average debt of £48,470, while those in Wales, Northern Ireland, and Scotland will have lower average debts of £37,360, £25,730, and £16,680, respectively.
These numbers highlight the varying levels of student loan debt associated with different degree types and provide insight into the financial burden faced by graduates in different countries.
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Student loan debt by gender
According to the American Association of University Women (AAUW), women hold nearly 67% of all US student loan debt, or approximately $929 billion. This means that women are more likely to take on more debt and stay in debt longer. Women earning a bachelor's degree graduate owing an average of $2,700 more than their male peers. This is due in part to the gender pay gap, which means that female borrowers typically require more education to earn a wage equal to less-educated men. To exceed the lifetime earnings of a male graduate with just an associate degree, a woman may need at least a master's degree.
Black women owe the largest amount of debt, followed by White, Latino/Latina, and Asian borrowers. 50% of Black adults have student loan debt, with an average balance of $9,800. 44% of White adults have student loan debt, with an average balance of $8,700. 37% of Hispanic/Latino adults have student loan debt, with an average balance of $7,000.
There is limited data on the student debt of those who identify outside of the gender binary. However, the Williams Institute at the UCLA School of Law reports that 51% of transgender adults took out federal student loans to finance their education in 2021, compared to 35.9% and 27.9% of LBQ cisgender women and GBQ cisgender male borrowers, respectively. Gender minority federal student loan borrowers borrow 19% more in student loans than male borrowers on average.
Overall, 20% of US adults report having paid off student loan debt, while 20% of adults with undergraduate degrees and 24% of postgraduate degree holders have outstanding student debt. Among adults under 40 with at least a four-year college degree, 36% have outstanding student debt.
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Student loan debt repayment status
Student loan debt is a common phenomenon, with about 20% of US adults reporting having paid off their student loans. The percentage of adults with outstanding student loan debt varies across different age groups. 25% of adults aged 18 to 29 years report having student loan debt, while 14% of 30- to 44-year-olds report the same. Among adults under 40 with at least a four-year college degree, 36% have outstanding student loan debt.
The percentage of adults with student loan debt also varies across racial groups. 50% of Black adults have student loan debt, with an average balance of $9,800. 44% of white adults have student loan debt, with an average balance of $8,700, while 37% of Hispanic/Latino adults have student loan debt, with an average balance of $7,000.
The cost of college has steadily increased over the last 30 years, leading to a greater need for student loans. As of June 2024, Americans owed about $1.6 trillion in student loans, with the total increasing to $1.77 trillion in 2025. The average undergraduate borrower owes $29,300, while the average debt for a bachelor's degree among the class of 2021 was $29,400.
The COVID-19 pandemic significantly impacted student loan payments. Federal student loan payments were paused nationwide from March 2020 until 2023, with the majority of federal loans in forbearance. In 2023, with the resumption of federal student loan payments, the share of borrowers making payments returned to pre-pandemic levels.
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Frequently asked questions
As of 2024, 36% of adults under 40 with at least a four-year college degree have outstanding student loan debt. This equates to nearly 1 in 5 adults in the US.
Americans owed $1.6 trillion in student loans as of June 2024, 42% more than what they owed a decade earlier. The average undergraduate borrower owes $29,300.
Student loan debt is more common among people with higher levels of education. 20% of US adults with undergraduate degrees have outstanding student debt, and 24% of postgraduate degree holders report outstanding student loans. 25% of adults aged 18-29 report having student loan debt, compared to 14% of 30-44-year-olds. 50% of Black adults have student loan debt, compared to 44% of white adults and 37% of Hispanic/Latino adults.
Federal student loan payments were paused nationwide from March 2020 until 2023, with interest charges resuming in September 2023.
