Who Has the Most Student Debt in America?

Student debt is money borrowed to pay for higher education expenses like tuition, fees, and living costs. These loans originate from federal or private sources, such as banks. Unlike grants or scholarships, student loans must be repaid, typically with interest.

General Distribution of Student Debt

The total student loan debt in the United States is $1.814 trillion, encompassing both federal and private loans. This figure ranks as the second-highest category after mortgages. Approximately 42.5 million Americans hold this debt.

Federal student loans account for 91.6% of this total, at $1.661 trillion, held by 42.5 million federal borrowers. Private student loans make up the remaining 8.43%, totaling $139.777 billion.

The average federal student loan balance per borrower is $39,075, while the overall average, including private loan debt, can be as high as $42,673. The median student loan debt falls within the range of $20,000 to $24,999. Approximately 12 million individuals carry student loan debt of $40,000 or more.

A substantial portion of borrowers manage smaller debt loads, with 60% making monthly payments up to $300. However, the distribution shows that 71% of those with a graduate degree, 48% of those with a bachelor’s degree, and 31% of those with an associate degree have student debt balances exceeding $25,000.

Demographic Profiles of Borrowers

Student loan debt is not evenly distributed across all demographic groups, with significant variations observed by age, gender, and racial or ethnic background. Borrowers aged 35 to 49 hold the largest share of student loan debt, accounting for 32% of the total, with those aged 25 to 34 holding about 33%. Individuals aged 50 to 61 have the highest average federal student loan debt at $46,556, while federal borrowers under 25 years old owe an average of $14,160.

Women hold a higher share of student loan debt, accounting for nearly 64% of the total. The average student debt for women in the United States is $31,700. Women are also more likely to borrow federal student loans and often borrow higher amounts than men; for instance, 49% of female undergraduates took out student loans during 2019-2020, compared to 42% of male undergraduates.

Among racial and ethnic groups, Black and African American borrowers carry higher average student loan debt. Black bachelor’s degree holders, for example, have an average of $52,726 in student loan debt, which is the highest among all racial groups. Black students are also more likely to utilize federal loans to finance their education, with 66% of Black students using student loans compared to 47.4% of white undergraduate students.

Households in higher income brackets hold a significant portion of the total student loan debt. The highest-income 40% of households (earning above $74,000) are responsible for almost 60% of the outstanding education debt. These households also make nearly three-quarters of the monthly student debt payments. The lowest income quintile, consisting of households earning at or below the 20th percentile, still holds 5% of all outstanding student debt.

Debt Levels by Educational Attainment

The level of education pursued significantly influences the amount of student loan debt. Graduate and professional degrees are associated with higher debt burdens compared to undergraduate degrees. For instance, the average graduate degree holder owes up to $102,790 in federal student loan debt.

For an associate’s degree, the average federal student loan debt is $20,340. Bachelor’s degree recipients average $29,550 in federal student loan debt. Graduates from public colleges average $20,700 in debt, while private nonprofit institutions average $22,200.

Master’s degree holders typically owe an average of $69,140. The average student debt for those pursuing a master’s degree can rise to approximately $71,000. Professional degrees, such as law or medicine, are associated with the highest debt levels.

The average law school debt is approximately $140,000. Medical school debt averages $200,000. For those pursuing a research doctorate, the average debt is around $72,560, while other professional doctorates can lead to average debts of $178,800.