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Going into 2023, student loan debt in the United States totals at over $1.7 trillion dollars, according to the Federal Reserve. This includes outstanding federal student loan balances as well as private loans.
To help you better understand student loan debt in America and see how you compare, we’ve compiled the latest student loan debt statistics. We cover both federal and private student loan debt, which states have the highest amount of student loan debt as well as debt broken down by age group.
Table of contents:
If you have student loan debt, you’re not alone. Here’s a look at how many Americans currently hold some form of student loan debt:
The burden of student loans is poised to have lasting effects on graduates as homeownership among Americans under the age of 35 is down and the expected retirement age is rising. With college tuition increasing, it is important for graduates and potential student loan borrowers to practice strategic financial planning in order to plan for future investments.
The United States Department of Education provides an annual portfolio documenting how many Americans owe both federal and private student loans. Out of the total $1.7 trillion in outstanding student loan debt, $1.6 trillion is owed to the federal government. The breakdown is as follows according to the 2022 Q4 report:
Taking out a private loan to pay for education is a route that many college students use to fund school. Unlike Stafford Loans which are subsidized by the government, a private loan tends to have a higher interest rate and does not come with any of the benefits of federal loan forgiveness and income-based payment programs.
Borrowers who can’t make their payments can apply for deferment or forbearance, which are both methods to postpone loan payments. It’s important to remember that during this time, interest may still accrue.
The following is the data from Q4 2022 from the U.S. Department of Education tracking loan repayment status:
Analyzing student loan borrowers by age demographics can be helpful in understanding the financial status of Americans. According to the Pew Research Center, 34% of all student loan borrowers were under the age of 30 and around 22% were between the age of 30 – 44.
The United States Department of Education reports the following as the total student loan debt broken by total amount owed per age group as well as how many Americans are in each group:
| Balance in Q4 of 2022 (in billions) | Number of borrowers (in millions) |
| $20.4 | 7.6 |
| $55 | 7.5 |
| $134 | 9.2 |
| $281.2 | 9.9 |
| $213.4 | 4.3 |
| $181.3 | 2.6 |
| $126.7 | 1.4 |
| $338 | 2.4 |
| $287.3 | 1.0 |
A borrower defaults on a loan when the payment is more than 270 days late. Missing and defaulting on student loan payments cause severe effects on your credit score and can create barriers when applying for insurance plans and financing, as well as seeking housing and loans.
The following is the latest information from the Education Data Initiative:
There are various government and private programs that offer student loan debt forgiveness. These programs pay off a certain amount of your debt, and often require you to meet specific criteria, which varies based on the program.
The most common program is the federal Public Service Loan Forgiveness (PLSF) program from the government. As of October 2022, they reported:
According to the Education Data Initiative, only 2.16% of all PSLF applicants got approvals in 2020. Aside from incomplete forms, 35% of the forms had yet to be processed. They also report that only 6.7% of eligible borrowers apply.
The cost of education is not the same throughout the United States. Since universities receive funds on a state level and the cost of living changes throughout the country, the location of a college graduate will influence their financial performance.
The following data comes from the Federal Reserve Bank of New York as of 2021.
Here, we cover some common questions people have about student loans.
According to Experian, student loan debt in America has increased every year since 2009 and is increasing faster than inflation.
Student loan refinancing is an option for borrowers to lower their interest rate and monthly payment, but this also extends the duration of the loan.
Student loan debt consolidation is for those who have multiple loans. This allows the borrower to combine the loans into one lump sum by “consolidating” them.
The Education Data Initiative reports that it takes the average borrower 20 years to pay off their student loan debt.
Borrowing any large sum of money can largely impact your credit score. Payment history is a major contributing factor to your credit score, which can quickly decline if you fall behind on payments. Hopefully, these student loan debt statistics have helped you see where you stand compared to other Americans. If you are unsure if student loans are having a negative effect on your credit score, allow Lexington Law to provide you with a free credit snapshot and consultation to help assess your student loans and other credit factors.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
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