Who owes the most student loan debt?
Borrowers ages 35 to 49 owe more than $620 billion in student loans. This cohort has the highest number of borrowers who owe more than $100,000 in loans. Even retirees feel the pressure from student loans; there are 2.4 million borrowers aged 62 or older that owe $98 billion in student loans.
The highest-income 40% of households (those with incomes above $74,000) owe almost 60% of student loan debt. These borrowers make almost three-quarters of student loan payments. The lowest-income 40% of households hold just under 20% of student loans and make only 10% of the payments.
Total federal student loan debt
Most student loans — about 92.5% — are owned by the government. Total federal student loan borrowers: 43.2 million. Total outstanding federal student loan debt: $1.60 trillion.
Black families borrow student loans at higher rates than other races — and they owe more. 30.2% of Black families hold student loan debt, versus 20.0% of white and 14.3% of Hispanic families.
Financial Status
Families with fewer assets and more debt may be less able to withstand financial shocks, which could cause them to struggle with repayment. Those experiencing unemployment or who were working part time were twice as likely to have their student loans in default than those who worked full time.
On average, Black graduates owe 6 percent more than they have borrowed, while White graduates owe 10 percent less than they have borrowed. On average, Black graduates pay off their undergraduate debt at a slower rate than White graduates.
If those monthly payments look low compared to what most borrowers pay, it's because most borrowers carry a lot more than $20,000 in student loan debt. As of March 2023, the average federal student loan debt in the United States was about $37,720, according to a BestColleges analysis of Education Department data.
Research from EducationData.org shows that almost 45.3 million Americans hold an average federal student loan debt balance of $37,338. Combined, student loan debt in the U.S. adds up to nearly $2 trillion. According to the same data, the average student loan monthly payment is $503.
The average student loan takes 21 years to pay off but that doesn't mean that it has to take you that long. If you want to get a better idea of what your monthly payment will look like then you can use our student loan calculator to figure out your monthly and total student loan payments.
White people, on average, are more likely to have mortgage debt than Black people, but Black people are more likely to have credit card debt (Dettling et al., 2017).
What race has the most debt in America?
But the median debt-to-asset ratio for white families is 26.5%, while it was 46.8% for Black families, 46.2% for Hispanic families and 37.3% for other non-white races and ethnicities, an Employment Benefits Institute study found.
Student loan debt slows new business growth and limits consumer spending. Broad student loan debt forgiveness may help boost the national economy by making it more affordable for borrowers to participate in it.
Cancellation would promote college affordability, access, and completion. Student debt is not an individual burden but one that strains entire families. Many borrowers take on student loans while also caring for their parents.
What is the monthly payment on a $70,000 student loan? The monthly payment on a $70,000 student loan ranges from $742 to $6,285, depending on the APR and how long the loan lasts. For example, if you take out a $70,000 student loan and pay it back in 10 years at an APR of 5%, your monthly payment will be $742.
| Total Student Loan Debt | Repayment Period |
|---|---|
| Less than $7,500 | 10 years |
| $7,500-10,000 | 12 years |
| $10,000-$20,000 | 15 years |
| $20,000-$40,000 | 20 years |
But if you pay off a $150,000 student loan in one year at a 14% APR, your monthly payment will be $13,468. The standard payoff period for a student loan is up to 10 years, and student loan APRs generally range between 5% and 14%. Private student loans tend to have higher maximum APRs than federal loans, however.
Explore income-driven repayment plans
How long will it take to pay off $50k: Depending on the IDR plan you choose, you could have the remaining balance of your federal student loans forgiven after 20 to 25 years of on-time payments.
How long does paying off $100K in student loans take? Although the standard repayment plan is typically 10 years, some loans and repayment plans have longer terms, so you could be repaying for 20 or even 30 years.
Student loan payments vary depending on the loan amount, interest rate and repayment period. The average student loan payment is between $200 and $299, according to the most recent available data from the Federal Reserve.
If you have federal student loans and pay them off early, you could lose the opportunity to take advantage of a student loan forgiveness program (if you qualify). If it's still worth it to you to pay off your student loans quickly, it may help to refinance your student loans as part of the process.
How fast do most people pay off student loans?
On average, it takes about 10–20 years to pay off a student loan. But with the right strategy, you can pay off your loans way faster! (I'm about to blow your mind.) Exactly how long it will take you to pay off your student loans depends on your original loan balance, your repayment plan and how much you pay each month.
Say, for example, you borrow $20,000 in student loans with an interest rate of 5%. Your monthly payment on a standard 10-year term would be $212. By the end of the loan, you'll have paid $5,456 in interest.
| Race | Average Score | Classification |
|---|---|---|
| Black | 677 | Good |
| Hispanic | 701 | Good |
| Other | 732 | Good |
| White | 734 | Good |
But it. is a race up an eroding hill of sand: Black debt means higher. interest with lower returns. Black debt also represents the past. and ongoing theft of Black assets. “
| Generation | Average Credit Card Debt |
|---|---|
| Millennials | $6,521 |
| Generation X | $9,123 |
| Baby boomers | $6,642 |
| Silent generation | $3,412 |
References
- https://www.ngpf.org/blog/question-of-the-day/question-of-the-day-how-many-americans-have-over-1000000-in-student-debt/
- https://finance.yahoo.com/news/why-m-not-paying-student-231400470.html
- https://www.credible.com/refinance-student-loans/i-have-100k-in-loans-student-loan-consolidation
- https://www.bankrate.com/loans/student-loans/why-is-college-expensive/
- https://revealnews.org/article/who-got-rich-off-the-student-debt-crisis/
- https://www.sdflc.org/6-ways-maintain-debt-free-lifestyle/
- https://www.savingforcollege.com/article/how-much-student-loan-debt-is-too-much
- https://finance.yahoo.com/news/monthly-payment-20-000-student-112728748.html
- https://www.thenation.com/article/politics/student-loan-cancellation-return-to-repayment-report/
- https://www.forbes.com/advisor/student-loans/average-student-loan-debt-statistics/
- https://wallethub.com/answers/cc/how-to-pay-off-9000-in-credit-card-debt-1000294-2140754713/
- https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service
- https://www.cbsnews.com/news/what-are-the-pros-and-cons-of-credit-card-debt-forgiveness/
- https://www.fool.com/research/student-loan-debt-statistics/
- https://www.bankrate.com/loans/personal-loans/living-debt-free/
- https://www.bankrate.com/loans/student-loans/never-pay-student-loans/
- https://www.thebalancemoney.com/debt-free-characteristics-4059833
- https://www.cbsnews.com/news/how-long-will-it-take-to-pay-off-10000-in-credit-card-debt/
- https://www.intelligent.com/1-in-10-borrowers-who-havent-resumed-student-loan-payments-are-boycotting/
- https://www.linkedin.com/pulse/5-ways-rich-people-make-money-debt-habeeb-mahmood
- https://www.investopedia.com/articles/personal-finance/051214/debt-forgiveness-how-get-out-paying-your-student-loans.asp
- https://www.bankrate.com/loans/student-loans/pay-more-than-minimum-payment/
- https://www.credible.com/refinance-student-loans/pay-off-50k?utm_content=ef3500c8-5349-45a6-bf7a-56c3beb0ed8b
- https://www.conahec.org/news/case-against-student-loan-cancellation
- https://www.savingforcollege.com/article/how-long-does-it-take-to-repay-a-student-loan
- https://studentaid.gov/help-center/answers/article/status-of-pslf-application
- https://www.consumerfinance.gov/paying-for-college/student-loan-forgiveness/
- https://www.usatoday.com/money/blueprint/student-loans/student-loan-forgiveness-programs/
- https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-your-debts/check-if-you-have-to-pay-a-debt/
- https://www.investopedia.com/national-debt-relief-review-5092836
- https://www.fool.com/student-loans/2023/09/02/2-reasons-student-loans-are-so-difficult-to-pay-of/
- https://www.investopedia.com/average-credit-scores-by-race-5214521
- https://www.bestcolleges.com/research/student-loan-debt-by-race/
- https://www.naacpldf.org/student-loans-racial-wealth-gap/
- https://www.researchgate.net/publication/331600156_Black_Debt_White_Debt
- https://www.cnn.com/cnn-underscored/money/average-student-loan-debt
- https://www.investopedia.com/the-impact-of-cancelling-student-debt-5101053
- https://www.bankrate.com/personal-finance/debt/walking-away-from-debt-vs-filing-bankruptcy/
- https://www.cnbc.com/2024/04/09/most-of-americans-are-living-paycheck-to-paycheck-heres-why.html
- https://money.usnews.com/loans/student-loans/articles/average-student-loan-payment
- https://www.forbes.com/advisor/student-loans/100k-student-loan-monthly-payment/
- https://money.com/consequences-not-paying-student-loans/
- https://www.whitehouse.gov/briefing-room/statements-releases/2024/04/08/president-joe-biden-outlines-new-plans-to-deliver-student-debt-relief-to-over-30-million-americans-under-the-biden-harris-administration/
- https://www.investopedia.com/what-happens-when-your-student-loans-are-forgiven-7152753
- https://www.nerdwallet.com/article/loans/student-loans/who-owns-my-student-loans
- https://studentaid.gov/manage-loans/forgiveness-cancellation
- https://www.bestcolleges.com/news/analysis/what-caused-the-student-debt-crisis/
- https://www.bestcolleges.com/news/analysis/is-student-loan-debt-bad/
- https://www.linkedin.com/pulse/what-like-debt-free-debt-com
- https://www.moneylion.com/learn/who-pays-for-the-student-loan-forgiveness/
- https://files.eric.ed.gov/fulltext/ED610484.pdf
- https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10005910/
- https://www.whitehouse.gov/cea/written-materials/2024/04/08/the-economics-of-administration-action-on-student-debt/
- https://www.ncsl.org/state-legislatures-news/details/supreme-court-strikes-down-student-loan-forgiveness-program
- https://www.linkedin.com/pulse/student-loan-debt-crisis-current-state-potential-solutions-ry5oe
- https://wallethub.com/student-loan-calculator
- https://www.firstrepublic.com/insights-education/average-american-debt
- https://www.cnbc.com/select/how-to-pay-off-credit-card-debt-in-one-year/
- https://www.nasdaq.com/articles/4-borrowing-rules-rich-people-follow-but-others-often-dont
- https://www.cagw.org/thewastewatcher/president-biden-unveils-another-wasteful-and-unfair-plan-forgive-student-loan-debt
- https://www.debt.org/faqs/americans-in-debt/demographics/
- https://sites.ed.gov/whblackinitiative/files/2016/11/Black-College-Graduates-and-the-Student-Debt-Gap.pdf
- https://www.debt.org/advice/debt-free-living/
- https://www.cnbc.com/select/debt-free-by-age-45/
- https://educationdata.org/student-loan-forgiveness-statistics
- https://www.nerdwallet.com/article/loans/student-loans/student-loan-debt
- https://www.gobankingrates.com/net-worth/debt/is-debt-free-the-new-rich/
- https://studentaid.gov/help-center/answers/article/what-happens-if-i-do-not-pay-back-student-loan
- https://studentaid.gov/articles/your-loan-was-transferred-whats-next/
- https://smartasset.com/student-loans/average-student-loan-interest-rate
- https://www.bankrate.com/loans/student-loans/repay-college-loans-fast/
- https://www.investopedia.com/articles/personal-finance/100515/10-ways-student-debt-can-destroy-your-life.asp
- https://www.ramseysolutions.com/debt/how-long-does-it-take-to-pay-off-student-loans
- https://www.investopedia.com/student-loan-debt-2019-statistics-and-outlook-4772007
- https://finance.yahoo.com/news/men-vs-women-more-credit-120024159.html
- https://www.huffpost.com/entry/jerome-kerviel-most-debt-in-the-world_n_2077219
- https://www.investopedia.com/cost-cancel-student-debt-8585118
- https://www.lendingtree.com/student/student-debt-demographics-study/
- https://www.newsweek.com/student-loan-borrowers-refuse-pay-back-loans-live-life-you-want-1852678
- https://www.bestcolleges.com/research/how-long-to-pay-off-student-loans/
- https://www.bestcolleges.com/research/average-student-loan-debt/
- https://www.whitehouse.gov/briefing-room/statements-releases/2024/02/21/fact-sheet-president-biden-cancels-student-debt-for-more-than-150000-student-loan-borrowers-ahead-of-schedule/
- https://www.ed.gov/news/press-releases/biden-harris-administration-announces-additional-74-billion-approved-student-debt-relief-277000-borrowers
- https://www.investopedia.com/how-long-pay-off-student-loan-debt-8549844
- https://www.investopedia.com/student-debt-affect-economy-8550501
- https://www.credible.com/refinance-student-loans/average-student-debt
- https://www.nerdwallet.com/article/loans/student-loans/student-loans-extra-payments
- https://studentaid.gov/debt-relief-announcement
- https://studentaid.gov/help-center/answers/article/what-does-supreme-court-decision-mean-for-student-loan-debt-relief
- https://www.opploans.com/oppu/spending/how-do-millionaires-go-broke/
- https://www.nasdaq.com/articles/im-a-student-loan-expert%3A-5-reasons-you-might-be-denied-loan-forgiveness
- https://www.fool.com/the-ascent/research/average-household-debt/
- https://educationdata.org/student-loan-debt-statistics
- https://www.axios.com/2023/06/30/student-debt-age-gender
- https://www.cfr.org/backgrounder/us-student-loan-debt-trends-economic-impact
- https://www.tateesq.com/learn/student-loan-balance-says-0
- https://www.cnbc.com/2024/03/27/how-much-credit-card-debt-americans-have-by-age-.html
- https://www.forbes.com/advisor/mortgages/pay-off-mortgage-early-vs-investing/
- https://www.pewtrusts.org/en/research-and-analysis/data-visualizations/2024/who-experiences-default
- https://educationdata.org/what-happens-if-student-loan-debt-is-canceled
- https://www.caminofinancial.com/en/blog/business-managment/psychology-of-being-debt-free/
- https://www.nerdwallet.com/article/loans/student-loans/is-sallie-mae-federal-loan
- https://studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info
- https://studentaid.gov/articles/student-loan-forgiveness/
- https://www.nasdaq.com/articles/this-is-the-average-age-most-americans-become-mortgage-free
- https://www.cato.org/blog/top-five-reasons-federal-student-debt-cancellation-bad-idea
- https://smartasset.com/student-loans/how-does-student-loan-forgiveness-affect-your-finances
- https://wallethub.com/answers/cc/how-long-to-pay-off-20000-credit-card-debt-1000423-2140858500/
- https://www.cnbc.com/select/when-to-expect-biden-student-loan-forgiveness/
- https://wallethub.com/answers/cc/what-percentage-of-america-is-debt-free-2140664784/
- https://www.savingforcollege.com/article/who-owes-the-most-student-loan-debt
- https://wallethub.com/answers/sl/monthly-payment-on-150000-student-loan-1000451-2140765203/
- https://www.cnbc.com/2023/12/29/student-loan-borrowers-wont-face-penalties-for-missed-payments.html
- https://www.ed.gov/news/press-releases/biden-harris-administration-releases-state-state-breakdown-12-billion-save-plan-forgiveness
- https://www.citizen.org/news/why-do-we-need-student-loan-debt-cancellation-and-other-faqs/
- https://www.consumerfinance.gov/about-us/newsroom/consumer-advisory-opportunity-to-cancel-student-loan-debt-ends-soon/
- https://www.forbes.com/advisor/credit-cards/average-credit-card-debt/
- https://www.consumerfinance.gov/ask-cfpb/do-student-loans-affect-my-credit-score-en-581/
- https://www.cnn.com/2023/12/18/politics/student-loan-missed-payments-november/index.html
