Total student loan debt is now over $1.7 trillion across roughly 43 million borrowers

The total amount Americans owe in student loans has grown substantially over the past two decades. The exact figure changes quarterly as borrowers repay, default, or take out new loans, but as of 2024 the outstanding balance sits above $1.7 trillion. This makes student debt the second-largest category of consumer debt after mortgages — larger than credit card debt or auto loans.

These loans are spread across approximately 43 million people. That number includes borrowers who are still in school, those actively repaying, those in deferment or forbearance, and those in default. Not all of these borrowers carry the same debt load: some owe a few thousand dollars, while others carry six figures or more.

Key Takeaways

  • Student loan debt totals over $1.7 trillion across 43 million borrowers, making it the second-largest consumer debt category after mortgages.
  • The average borrower with federal student loans owes between $28,000 and $37,000, though this varies significantly by degree type and school attended.
  • Graduate degree holders carry substantially higher debt than undergraduate borrowers, sometimes exceeding $100,000.
  • Private student loans represent a smaller portion of total debt but often carry higher interest rates and fewer repayment protections than federal loans.
  • Debt levels have grown faster than wages over the past 15 years, affecting borrowers' ability to buy homes, start businesses, or save for retirement.

How much the average borrower owes

The average federal student loan borrower carries a balance between $28,000 and $37,000. This figure represents borrowers who have completed their education and entered repayment. The variation depends on the data source and the year measured, since the average shifts as new borrowers enter repayment and others pay down their balances.

This average masks significant differences by education level. Borrowers with only an associate degree typically owe less than those with a bachelor's degree. Those who pursued graduate or professional degrees — law school, medical school, MBA programs — often owe substantially more, sometimes $80,000 to $150,000 or higher. A borrower who attended an expensive private university will generally owe more than one who attended a public state school, even with the same degree type.

Federal versus private loan debt

Federal student loans make up the vast majority of outstanding student debt — roughly 90 percent of the total. These are loans issued directly by the U.S. Department of Education or through the Federal Family Education Loan Program (FFEL). Federal loans carry fixed interest rates set by Congress, income-driven repayment options, and forgiveness programs like Public Service Loan Forgiveness.

Private student loans, issued by banks and other lenders, account for the remaining portion. Private loans typically carry higher interest rates than federal loans, often variable rather than fixed, and offer fewer repayment protections. Borrowers with private loans cannot access income-driven repayment plans or federal forgiveness programs. Because private loans represent a smaller share of total debt, changes in federal policy affect most borrowers more directly than changes in private lending.

How debt has grown over time

Student loan debt has roughly tripled since 2006. In that year, total outstanding debt was around $500 billion. The growth accelerated during and after the 2008 financial crisis, when more people pursued education as a way to improve job prospects, and when federal loans became the primary way to finance college as private lending contracted.

Debt growth has outpaced wage growth over this period. The average starting salary for college graduates has risen, but not as quickly as the average amount borrowed. This gap means that recent graduates spend a larger share of their income on loan payments than graduates from 15 or 20 years ago, even accounting for inflation. The effect compounds when borrowers attend graduate school or attend expensive institutions.

Debt by school type and degree

Borrowers who attended for-profit colleges often carry higher debt relative to their earning potential. These schools typically cost more than public universities, and their graduates earn less on average than graduates from nonprofit institutions. Some for-profit borrowers have pursued loan forgiveness through programs designed for schools that closed or engaged in fraud.

Graduate and professional degree holders carry the largest individual balances. Medical school graduates often owe $150,000 to $200,000 or more. Law school graduates typically owe $100,000 to $150,000. MBA graduates and those with other master's degrees fall in a similar range, though the exact amount depends on the program's cost and how much the borrower paid out of pocket. Undergraduate-only borrowers generally owe less, though some with degrees from expensive private universities approach or exceed $100,000.

Who holds the most debt

Borrowers in their late 20s and 30s hold the largest share of total student debt by age group. These are people who graduated during or after the 2008 recession, when tuition was rising and job prospects were uncertain. Older borrowers who took out Parent PLUS loans or who returned to school later in life also carry significant balances.

Black borrowers and borrowers from lower-income families tend to borrow more and carry higher debt balances relative to white borrowers and those from higher-income families. This gap persists even when controlling for degree type. Research suggests this reflects both higher tuition costs at the schools these borrowers attend and lower family wealth available to contribute to education costs.

How debt affects major life decisions

High student loan balances delay major purchases and life milestones. Borrowers with substantial debt are less likely to buy homes in their 20s and 30s, when they would normally enter the housing market. They delay marriage, having children, and starting businesses at higher rates than previous generations with lower debt loads. Some defer these decisions indefinitely.

The effect is not uniform. A borrower with $20,000 in debt and a $60,000 salary faces different constraints than a borrower with $100,000 in debt and a $50,000 salary. Income-driven repayment plans can lower monthly payments for lower-income borrowers, but they extend the repayment period and increase total interest paid. Borrowers with higher incomes can pay off debt faster but may still delay other financial goals.

Frequently Asked Questions

How much does the average person owe in student loans?

The average federal student loan borrower owes between $28,000 and $37,000. Graduate degree holders typically owe more — often $80,000 to $150,000 or higher. The exact average varies by data source and changes as borrowers repay or default.

Is student loan debt still growing?

Total outstanding student debt remains above $1.7 trillion, though the rate of growth has slowed in recent years. New borrowing continues, but some borrowers are paying down balances faster than in previous years. The total figure changes quarterly.

What percentage of Americans have student loan debt?

Approximately 43 million Americans hold student loan debt. This represents roughly 13 percent of the total U.S. population, or a higher percentage of working-age adults. Not all college graduates have debt — some paid through savings, scholarships, or family contributions.

Do private student loans make up most of the debt?

No. Federal student loans account for roughly 90 percent of total outstanding student debt. Private loans, issued by banks and other lenders, make up the remaining portion. Federal loans carry lower interest rates and more repayment options.

How does student debt compare to other types of debt?

Student loan debt is the second-largest category of consumer debt after mortgages. It exceeds credit card debt and auto loan debt combined. Only mortgage debt is larger in total amount.