Average student loan debt
The most recent data available from College BoardCollege Board indicates that 55% of the class of 2020 graduated with student debt. Trends in College Pricing and Student Aid 2021. Accessed Jan 4, 2023. View all sources. Among these graduates, the average student loan debt was $28,400.
The average U. S. The 2022 household debt study by NerdWallet shows that the average household with student debt owes $58,238.
Heres what average student loan debt by type:
Who has student loan debt?
45 million Americans, or nearly one in five, are in default on their student loans. S. adults (17. 4%), according to an analysis of census data.
According to federal data, the age group of 25 to 34 is the most likely to have student loan debt, but the age group of 35 to 49 owes the highest amount, totaling over $600 billion.
Among all borrowers, women typically borrow more for college compared with men (and attain more degrees), according to 2021 data by the American Association of University Women. And Black students borrow more often and greater amounts compared with all other races and ethnicities, according to federal data.
Learn more about the characteristics of student loan borrowers here.
Total federal student loan debt
The majority of student loans, approximately 2092% of which are owned by the U S. Department of Education.
- Total federal student loan borrowers: 43. 8 million. Studentaid. gov . Federal Student Aid Portfolio Summary, Q1 2023. Accessed Jun 2, 2023. View all sources.
- Total outstanding federal student loan debt: $1.64 trillion.
Total private student loan debt
Private student loans make up roughly 8. 3% of the total outstanding U. S. an examination of information from the Federal Reserve and Federal Student Aid Office as of March 2023 regarding student loans
Total Parent PLUS loan debt
Parent PLUS loans are one type of federal student loan available to parents to assist with their children’s education costs.
Total parent PLUS borrowers: 3.7 million borrowers.
Average parent PLUS loan debt: $29,081.
Expected college debt for a 2023 high school grad
Based on a five-year undergraduate career assumption and a May 2023 NerdWallet analysis of National Center for Education Statistics data, a 2023 high school graduate could anticipate borrowing $37,300 for their bachelor’s degree. This estimate was marginally lower than that of 2022, when high school graduates were expected to incur student loan debt of up to $39,500.
Student loan repayment status
Borrowers may use deferment or forbearance to postpone payments if they are unable to make them. Normally, interest is accumulated during these times, but borrowers who have loans that are subsidized are exempt from paying interest during deferment. Since March 2020, all federal student loans have been placed into federal forbearance; the pause is scheduled to end in the fall of 2023.
Therefore, because of the automatic student loan payment pause that has been in place since March 2020, the number of borrowers in forbearance has increased (and the number in repayment has decreased).
- Federal loan borrowers in school: 6.1 million.
- Federal borrowers in grace period: 1 million.
- Federal loan borrowers in repayment: 300,000.
- Federal loan borrowers in deferment: 2.8 million.
- Federal loan borrowers with loans in forbearance: 26.6 million.
- Federal loan borrowers in default: 4.7 million
Private student loans
Additionally, borrowers may choose to defer or forbearance their private student loan payments; however, interest will always accrue regardless of the borrower’s payment status.
- Percentage of outstanding private loan balance in deferment: 17.49%.
- Percentage of outstanding private loan balance in forbearance: 2.44%.
- The percentage of private loans with 90-day past due repayments is zero. 94%.
Student loan forgiveness
Applications approved for federal student loan forgiveness:
Forgiveness of Public Service Loans: Out of 5,462,098 applications, 500,520 PSLF borrowers had their discharges processed — 9 1% approval rate. 12,509 PSLF discharges and 6,495 Temporary Expanded PSLF discharges were among the total discharges processed. 482,908 discharges have been processed as a result of the PSLF waiver, and $32 8 billion in debt discharged.
Total PSLF debt discharged: $34.3 billion.
Source: Federal student loan forgiveness data: March 2023. This data includes Temporary Expanded Public Service Loan Forgiveness and the PSLF waiver.
Income driven repayment forgiveness: 157 borrowers
Source: Federal data obtained by the Government Accountability Office: March 2022.
Out of 762,800 applications, 190,257 were approved as borrower defense against repayment. 9% approval.
When closed schools are taken into account, the total amount of debt discharged is $13 billion for one million borrowers.
$9 billion for the discharge of all and permanent disabilities for over 425,000 borrowers
Student loan default
Student loan default happens after a period of missed payments. Approximately 270 days, or nine months, pass after the majority of federal student loans are past due. Private student loans can fall into default as soon as one missed payment, but usually do so after three late payments (roughly three months).
The most recent cohort default rates for student loan borrowers who stop making payments within a few years of starting repayment are shown below. Since the federal student loan payment halt due to the pandemic, these rates have drastically decreased.
• Public non-profit colleges: 2.3%.
• Private non-profit colleges: 1.7%.
• Private for-profit schools: 3.1%.
• Foreign schools: 0.5%.
• Total default rate: 2.3%.
Income-driven repayment use
Federal income-driven repayment plans cap monthly payments at 2010% to 2020% of discretionary income and forgive the remaining balance after 2020% or 2025 years, depending on the plan.
FAFSA completion
The Free Application for Federal Student Aid, known as the FAFSA, is required to be eligible for grants, scholarships, work-study and federal student loans. High school graduates who complete the FAFSA are 84% more likely to immediately enroll in postsecondary education, according to a 2019 report by the National College Attainment Network.
The percentage of 202022% high school graduates who finished the FAFSA is %E2%80%A2%20: %2056% National College Attainment Network . National FAFSA Completion Rates for High School Seniors and Graduates. Accessed Jan 31, 2023. View all sources.
Cost of incompletion:
- The percentage of 202022 graduates of high school who did not finish the FAFSA was 2044 percent.
- The average Pell Grant award for eligible graduates of the class of 2022 is $4,686.
- The class of 2022 forfeited a total of $3 in Pell Grant funds by failing to submit the FAFSA. 58 billion.
FAQ
How much does the average American have in student loan debt?
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State
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Average student loan debt
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California
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$37,211
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South Carolina
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$36,981
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North Carolina
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$36,885
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Delaware
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$36,776
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How much do US citizens owe in student loans?
The student loan debt balance in the U. S. Over the last ten years, %20has%20increased%20by%2066%%20, and it currently totals more than $1. 77 trillion, according to the Federal Reserve. Here is a detailed examination of student loan debt data in the United S. today, broken down by age, race, gender and other demographics.
Is $50,000 in student loans a lot?
The average student loan debt amount is slightly over $30,000. But many borrowers have student loan debt of at least $50,000. This isn’t impossible to overcome using the right repayment methods.
Who holds the most student loan debt?
By the numbers: Federal Student Aid data shows that borrowers between the ages of 35 and 49 owe the highest amount of federal student loans. Details: According to personal finance website NerdWallet, women usually borrow more money for college than men do.
Read More :
https://www.nerdwallet.com/article/loans/student-loans/student-loan-debt
https://www.bankrate.com/loans/student-loans/student-loan-debt-statistics/