Naturally, one can easily blame it all on the students, banks, and perhaps even the whole system in general. Still, we are not here to talk about that. We are here to talk about student loan debt statistics and other important figures you ought to know.
In this article, we’ll delve deeper into past figures, the present situation, future estimates, and more — all to the benefit of your personal finance strategies.
So, let’s get right into it by highlighting some of the essential stats.
10 Facts & Student Loan Debt Statistics for 2021
- The total student loan debt in the US in Q1 2021 amounted to $1.73 trillion.
- People in their mid-30s have the highest student loan debts — an average of $42,600.
- Graduates of Maine Maritime Academy have the highest student loan debts on average — $56,897.
- Black women have the highest student debt ($37,558 on average).
- The District of Columbia has the highest average college student debt — $55,400 per borrower.
- Harvard students were the first ones to get student loans in the US.
- Due to the pandemic, there was a temporary relief on federal student loans (ED-owned).
- The government owns 92% of student debt in the US.
- More than 1 million people default on their student loans every year.
- 36% of students with student loans believe these loans are not worth it.
Must-Know Student Loan Debt Facts
How big is the student loan debt, and which state has the highest student loan debt?
1. The total student loan debt in the US in Q1 2021 amounted to $1.73 trillion.
(Forbes) (Forbes) (Statista)
In addition, there were 45 million borrowers from the US whose student loan debt amounted to $1.73 trillion; only the total mortgage debt in the US is higher right now.
For comparison, the average student loan debt in 2020 amounted to $1.56 trillion in Q1.
2. The District of Columbia is the US state with the highest student loan debt — namely, $55,400 per borrower.
(Education Data)
Next in line is Maryland, with an average borrower debt of $42,700, followed by Georgia ($41,500), and Florida ($39,700).
On the other hand, we have North Dakota with “only” $29,200. The second best, i.e., the state with the second-lowest average debt from student loans, is Iowa ($30,500).
3. The average student loan debt per person in the US is around $39,351.
(The Guardian)
Amidst the pandemic, there was an increase in student loan balances. In fact, in Q1 2021, student loan balances grew by $29 billion.
In addition to that, Black college graduates owe $25,000 more than their white counterparts. In other words, Black borrowers owe 95% of their debt, 20 years after taking the student loan, in contrast to white borrowers that manage to pay off 94% of their debt.
That said, Americans will have to find a way to pay off their currently owned debt of $39,351.
4. Generation Z had the lowest average student loan debt in 2019 (per person).
(Experian)
In 2019, Zoomers had an average debt of $12,495. However, in 2020, they witnessed the biggest change in numbers. Namely, their student debt increased by 39%, amounting to $17,338.
On the other hand, the Silent generation experienced the lowest change in numbers (10%), followed by Millennials (12%), Generation X (13%), and Baby Boomers (16%).
5. The average student loan monthly payment is $393.
(The College Investor)
To elaborate, the monthly payment for a standard 10-year repayment plan amounts to $311. The graduate repayment plan (10 years) ranges between $175 and $526 per month. ICR, REPAYE, PAYE, and IBR plans amount to $244 per month.
The total amount of debt is somewhat of an abstract concept, and it doesn’t tell you much unless you dissect it into smaller bite-size chunks. Enter monthly payments.
In essence, they are much more informative as they tell you the exact amount people have to pay each month.
6. The median student loan debt is $17,000.
(The College Investor)
Averages don’t always show the complete picture, but median figures certainly do.
On that note, the median student loan monthly payment is $222 at the moment, which is significantly lower than the average.
7. People in their mid-30s have the highest student loan debts — an average of $42,600.
(Education Data)
If you ever wondered about the average student loan debt by age, now you know the answer. Namely, the average 35-year-old person has $42,600 in student loan debt, which is the highest of any age.
The lowest average student loan debts are found among people under 25 (7.38% of federal student loan debt). At the same time, people between 25–34 years hold 32% of the student loan debt, followed by the group of 35–49 years old (38.4%), and people older than 50 (22.2%).
8. Student loan debt statistics show even people in their 80s have student loan debts, which are, in fact, higher than those of people in their 20s.
(Experian)
People in their 80s have an average debt of $22,879, whereas those above the age of 90 have average student loans of $21,492.
Individuals in their 20s have student loan debts of around $21,682. In short, these student loan debt statistics from 2019 just go to show that people never stop paying off their student loans, so this definitely adds up to the sum needed for retirement.
9. Graduates of Maine Maritime Academy have the highest student loan debts on average — $56,897.
(US News) (US News)
95% of the class of 2019 were borrowers. Likewise, students from the University of Detroit Mercy and Alabama State University also have a high average graduate student loan debt of $55,097 and $54,177, respectively.
On the other hand, grads from Pensacola State College (FL) have the lowest student loan debt of just $1,537, followed by grads of Arizona Christian University ($3,049) and Texas A&M International University ($3,477).
10. $292,169 is the average dental school debt.
(ADEA) (Bankrate) (Zippia)
Dental school graduates have the highest student loan debt by major.
That said, 39% of dental school graduates (class of 2019) had student debt over $300,000, 25% had a debt between $200,000–$300,000, and merely 19% of dental school graduates had a debt lower than $200,000.
For comparison, the average pharmacy school debt amounts to $179,514, while the average veterinary school debt is $149,877. The average debt of a medical student stands at $201,490, which is nothing to sneeze at either.
11. Black women have the highest student debts ($37,558 on average).
(AAUW) (Education Data)
On the other hand, Asian women have the lowest student loan debts ($25.252). White and Hispanic or Latinx women have an average student loan debt of $31,346 and $27.029, respectively.
Women hold 58% of all student loan debt. In a nutshell, women hold $929 billion in student loan debt. Likewise, female borrowers have a higher average debt than male borrowers; by 9.6% to be precise.
12. Law school graduates have an average debt of $164,742.
(The Balance)
The average wage of lawyers amounted to $148,910 in 2020. The highest-paid lawyers had an annual salary of $233,400, whereas the lowest-paid lawyers earned $89,660 per year.
Again, Black and Hispanic (Latinx) graduates have the highest student loan debt rates. To be exact, one-third of Black and one-fourth of white graduates have over $200,000 in student debt.
The Big Climb of Student Loan Debt Statistics in the US
When were student loans first introduced in the US, and how much have they increased over the years?
13. Harvard students were the first ones to get student loans in the US.
(LendEDU)
It all started in 1840, and Harvard students were the “chosen elite” to obtain student loans. Moving forward, when the Higher Education Act was established in 1965, it provided “Educational Opportunity Grants” to college students that had financial problems.
The Higher Education Act then created the Federal Family Education Loan Program (FFELP), which allowed private institutions and banks to give loans to students.
Today, the average student loan debt after graduation for Harvard pupils amounts to $143,000.
14. Pell grants were created in 1972.
(Center for Online Education) (College Finance)
By 1976–1977, all undergraduate students were able to get Pell Grants. The Pell Grant program provides financial help to low-income families. And unlike private student loans, people are not obliged to pay them back.
You can receive a maximum of $6,195 per year from a Pell Grant.
15. Average college debt statistics (since 1989) show only a quarter of all the increases can be attributed to the growing number of students enrolling in university.
(Brookings)
In essence, the relatively large and increasingly high debts are mainly due to the high debt levels per student. Likewise, the biggest problems are the low earnings of for-profit students, dropouts, and high default rates.
16. The student loan debt total tripled since 2006.
(ValuePenguin) (Brian Schatz)
Less than 15 years ago, the student loan debt was “just” $481 billion. The fact that it tripled in such a short amount of time means people keep taking larger and larger student loans, of which many are unable to pay them off entirely.
And at the moment, student loan debt even suppresses the dreadful credit card debts.
17. Based on the college debt statistics from Q1 2020, the total student loan debt increases by $49 billion each year.
(Federal Reserve Bank of New York)
In fact, the debt will likely keep on rising unless something is done.
18. Due to the pandemic, there was a temporary relief on federal student loans (ED-owned).
(StudentAid)
Student loan debt statistics from 2020 show that the Federal Student Aid office decided to provide temporary relief to help students with their debts due to the ongoing pandemic.
What does it mean?
Well, in short, they suspended loan payments, stopped collections on defaulted loans, and offered a 0% interest rate, which applies to federal student loans and all ED-owned loans.
Moreover, student loan debt statistics for 2021 report that the COVID-19 emergency relief measures for ED-owned federal student loans will be prolonged until January 31, 2022.
19. The government owns 92% of student debt in the US.
(PGPF) (Investopedia)
Only 8% of student debt belongs to private lenders. Navient Corp, Discover Financial Services, and Wells Fargo & Co. are among the largest companies that offer private student loans.
Interesting Student Loan Debt Statistics
What’s the student loan rate, and how many people default on their loans?
Find out below!
20. In Q1 2020, 10.8% of student loan debt was 90 days delinquent or more.
(Federal Reserve Bank of New York)
This is a fairly small decline from the previous quarter — hence why it probably won’t change much in the near future either.
More importantly, the percentage is larger than any other type of debt.
21. As of March 2021, all student loan forgiveness is tax-free.
(CNBC)
What will happen to the student loan debt in 2021? Will it be forgiven? We still don’t know.
The current US president, Joe Biden, signed the American Rescue Plan in March, making student loan forgiveness tax-free.
22. Students from 2-year vocational schools and technical colleges usually have student loan debts of just around $10,000.
(College Scholarships)
As expected, the average student loan debt for 2-year degree students is a lot smaller than those of a regular 4-year college student.
23. More than 1 million people default on their student loans every year.
(Education Data)
If that wasn’t bad enough, after the first year of graduation, 11% of student loan holders default.
It’s not easy to get out of default. However, there are a few ways that can help. For one, try to repay your loans in full. Next, apply for loan consolidation. And lastly, apply for loan rehabilitation.
24. The average student loan interest rate for federal student loans ranges from 2.75%–5.30%.
(CNBC)
At the same time, for fixed private student loans, the average interest rates range from 3.34%–12.99%, whereas rates for variable private student loans range from 1.04%–11.98%.
25. 36% of students with student loans believe these loans are not worth it.
(CNBC)
Naturally, such statistics on college debt don’t necessarily show an objective truth. They merely show what a sizable portion of the student body thinks.
Overall, it all depends on your specific needs, but being rational does pay off.
26. Merely 6% of borrowers hold a third of all student debt.
(Voice of America)
Conversely, 18% of all student loan borrowers owe less than $5,000. In fact, they hold barely 1% of the total student loan debt.
27. Student loan debt statistics suggest that, during the pandemic, student loans were the most searched types of loans on the internet.
(Statista)
Between March and August 2020, there were about 382,333 monthly searches on student loans, followed by payday loan searches (341,361), personal loans (240,167), and small business loans (235,000).
Car loans were also popular (135,000 searches), whereas business, debt consolidation, and installment loans had 59,833, 45,600, and 36,300 monthly searches, respectively.
FAQs
What is the average student loan debt in 2020?
In Q3 2020, the student loan debt amounted to $1.55 trillion, $9 billion more than it amounted to in Q2. Also, in Q4 2020, student loan debt reached an incredible $1.7 trillion.
What’s more, people between 18 and 29 years of age had the highest percentage of student loans, followed by people in the 30–39 and 40–49 age groups, whereas individuals older than 70 had the lowest rate.
What is the average student loan debt in 2021?
Based on the latest statistics, the average debt amounted to $1.73 trillion in Q1 2021.
Residents from the District of Columbia have the highest student loan debt, i.e., $55,400 per borrower, followed by residents from Maryland ($42,700), Georgia ($41,500), and Florida ($39,700).
North Dakota has the lowest average debt of $29,200. Additionally, merely 10.8% of North Dakotans have student loans.
What is the average student loan debt per student in the US?
Student loans amount to $39,351 on average. Black students have the highest student debts — $25,000 more than their White peers. In fact, 30% of all student debt belongs to Black student loan borrowers.
Black women, and women in general, also have higher student debts than men. For example, Black women have an average debt of $37,558. In contrast, Black men owe an average of $35.665.
What percentage of students get student loans?
86.4% of first-year undergraduate students get some type of financial aid, and the percentage increases by 0.9% per annum.
That said, 33% of undergraduates receive $8,285 on average in federal loans, and 41% get $5,179 in federal grants each year. Also, public university attendees borrow an average of $30,030 each to attain a bachelor’s degree.
Is it bad to have student loan debt?
In short, yes. Having a student loan debt can stop you from investing in your home, starting a business, or even getting married. Moreover, student debts can affect your debt to income ratio and even hurt your retirement savings plans. So how can you control your debt?
First of all, create a plan on how to get rid of the debt. Secondly, find a way to get some extra cash. And lastly, don’t shy away from asking for help.
Is student loan debt a crisis?
There are differing opinions on the subject. What we can tell you for certain is that the current situation with student loan debts in the US is most definitely a crisis, as numerous student loan debt facts highlight. It’s a crisis because too many students have massive student loans that will take years, if not decades, to pay back.
Something has to change, or too many people will end up not being able to pay off their debt. More importantly, too many people have some challenging years ahead of them as soon as they get out of college, mainly because of the massive debts they accrued.
Who holds most of the student loan debt?
The great majority of student loans are federal. To be more precise, 92% of all student loan balances come from the federal government. Hence, they are all guaranteed by the government, and it doesn’t matter who holds them in the end.
The remaining 8% are all private loans.
The Bottom Line
We tried to lay out the most crucial student loan debt statistics you need to know. The figures might not be something you want to hear, but that doesn’t make them any less factual.
No matter how you feel about them, they are bound to give you a better perspective on student loans and the debt they accumulate. If you’re thinking about getting a student loan, you now have adequate knowledge to make the right decision.
Sources:
- AAUW
- ADEA
- Bankrate
- Brian Schatz
- Brookings
- Center for Online Education
- CNBC
- CNBC
- CNBC
- CNBC
- College Finance
- College Scholarships
- Education Data
- Education Data
- Education Data
- Education Data
- Education Data
- Experian
- Experian
- Federal Reserve Bank of New York
- Federal Reserve Bank of New York
- Forbes
- Forbes
- Investopedia
- LendEDU
- PGPF
- Statista
- Statista
- StudentAid
- The Balance
- The Balance
- The College Investor
- The Guardian
- US News
- US News
- ValuePenguin
- Voice of America
- Zippia
