How Much Student Debt Does The Average American Have?

Student loan debt is a growing concern in America. With college tuition and costs of living rising faster than incomes, more students are taking out loans to bridge the gap. But just how much debt are we talking about? Let’s break down the numbers.

The Current Student Debt Landscape

Over 44 million Americans currently hold student loan debt, with the total outstanding balance surpassing $1.75 trillion as of late 2024. This makes student loans the second largest consumer debt segment behind mortgages.

On average, bachelor’s degree holders owe around $30,000 in student loans upon graduation. However, that number has been steadily rising over the past decade. Here’s a quick snapshot of today’s student debt situation:

• Total student loan debt: $1.75 trillion
• Number of borrowers: 44.7 million
• Average debt per borrower: $28,950
• Share with outstanding debt: 11% of adults

While these figures are staggering, it’s important to note that not all degrees and schools are created equal when it comes to debt burdens. The amount owed can vary significantly based on factors like degree type, institution, and demographics.

Breaking It Down By Degree Type

Not surprisingly, graduate and professional degrees typically rack up higher student debt balances. This is due to their increased tuition costs and longer program lengths.

Here’s how average debt stacks up across common degree types

• Associate’s degrees: $13,000
• Bachelor’s degrees: $30,000
• Master’s degrees: $71,000
• Doctoral degrees: $100,000+
• Medical degrees (MD): $200,000+
• Law degrees (JD): $150,000+

Bachelor’s degree holders represent the largest share of student borrowers at 35%. Graduate degree holders follow at around 15%, despite their higher individual balances.

While community college is often touted as an affordable path, 28% of associate’s degree earners still use student loans averaging $13,000. That said, an associate’s degree still carries significantly lower debt than a 4-year program.

Variation By School Type

Student debt looks much different for graduates of public, private nonprofit, and private for-profit institutions.

• Public: $27,000
• Private nonprofit: $32,300
• Private for-profit: $39,900

Here we see the average is lowest for public schools, where in-state tuition is subsidized by state funding. Private nonprofits fall in the middle, while for-profit institutions have the highest average debt burdens.

However, averages don’t tell the whole story. It’s important to note borrowers at certain private nonprofits, especially highly selective schools, may owe as much or more than some for-profit graduates.

The Role of Demographics

Numerous demographic factors also correlate with student loan debt levels:

• Women borrow more on average than men.
• Black graduates owe more than other racial groups.
• Independent students owe more than dependents.
• Middle income students borrow the most.
• Older adults owe higher balances due to increased graduate study.

For example, Black bachelor’s degree holders owe $25,000 more on average than their white peers. Women also borrow more at every degree level.

These disparities stem from long-standing wealth gaps that make it harder for disadvantaged groups to afford college costs. This requires them to take on more debt.

Student Loan Debt vs. Income

Student debt looks more troubling when viewed against typical incomes.

• Median debt upon bachelor’s graduation: $30,000
• Median salary for 25-34 year-olds: $43,000

This puts the average debt-to-income ratio around 69% for recent grads. That’s significantly above lenders’ recommended 35-43% limits for total debt.

While incomes rise with age, so do expenses like housing, healthcare, and childcare costs. These financial tradeoffs make managing student debt difficult for many borrowers.

Surveys show nearly 30% of borrowers spend over 10% of their monthly income on student loan repayment. And 20% say their loans have prevented them from buying a home.

The Bigger Picture

• Total U.S. consumer debt: $16.15 trillion
• Student share: 11%
• Average per-borrower balance: $28,950

While staggering in aggregate, student debt is just one piece of the consumer debt puzzle. Still, its impacts are amplified given the financial vulnerabilities of many borrowers.

Moving forward, policymakers face pressure to make college more affordable and alter existing loan programs. But for now, student debt remains a financial roadblock for millions of American families.

Key Takeaways

• Total student loan debt exceeds $1.75 trillion, with 44.7 million borrowers holding an average balance of $28,950.
• Bachelor’s degree graduates owe around $30,000 on average. Graduate degrees can rack up over $100,000 in debt.
• Average debt is highest at private for-profits ($39,900) versus public ($27,000) and nonprofit schools ($32,300).
• Certain groups like women, minorities, and independent students borrow more on average.
• Student debt is 69% of median income for recent bachelor’s graduates, posing financial challenges.
• Student loans make up 11% of total consumer debt, with impacts beyond just borrowers.

Understanding how much the average American owes for their education provides context on the scope of the student debt crisis. While solutions remain debated, the status quo is unsustainable for many borrowers.

The average student loan debt in America is $37,853 per borrower for federal loans. However, the total average debt, including private loans, may be as high as $41,618.

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