The average student loan debt varies widely by borrower, but federal data shows most people with student loans carry between $20,000 and $40,000

The amount of student loan debt you carry depends on what you borrowed, how long you've been repaying, and whether you completed a degree. Federal student loan data from the U.S. Department of Education shows that borrowers with federal loans alone typically owe somewhere in the $20,000 to $40,000 range, though this is an average — many owe far less, and many owe significantly more. Private loans, graduate degrees, and multiple borrowing periods push totals higher. The median federal student loan debt for borrowers who have loans is around $28,000, but this figure shifts year to year and depends on when you borrowed and what type of degree you pursued.

What matters more than the national average is how your specific debt affects your housing options. Lenders look at your debt-to-income ratio when you apply for a mortgage or rental housing. Student loan payments reduce the income a lender thinks you have available for rent or a mortgage payment. A $30,000 loan on a standard 10-year repayment plan costs roughly $300 per month — money that counts against you when a landlord or lender decides whether you can afford housing.

Key Takeaways

  • Most borrowers with federal student loans owe between $20,000 and $40,000, though graduate degree holders and those with private loans often owe substantially more.
  • Your monthly loan payment, not your total balance, is what landlords and mortgage lenders use to decide if you can afford housing.
  • Income-driven repayment plans can lower your monthly payment but extend your repayment period and increase total interest paid over time.
  • Student loan debt affects your credit score and debt-to-income ratio, both of which directly impact whether you can rent or buy a home.
  • Deferment and forbearance temporarily pause payments but do not erase the debt, and interest may continue to accrue depending on the loan type.

How student loan debt breaks down by degree level and loan type

Federal student loans and private student loans carry different balances. Borrowers with only federal undergraduate loans typically owe less than those who pursued graduate degrees or took out private loans to supplement federal aid. Graduate students often borrow significantly more because graduate programs cost more and federal loan limits are higher for graduate study.

Federal data shows that borrowers who completed a bachelor's degree and borrowed only federal loans average around $28,000 to $30,000 in debt. Those who also took out private loans or pursued graduate degrees often owe $50,000 to $100,000 or more. Borrowers with professional degrees (law, medicine, dentistry) frequently carry $150,000 to $200,000 or higher. The type of loan also matters: federal loans have fixed interest rates set by Congress, while private loans vary by lender and credit score. Your interest rate affects how much of each payment goes toward principal versus interest, which changes how long you carry the debt.

What your monthly payment actually is, and how it affects housing decisions

Lenders and landlords do not care about your total balance — they care about your monthly payment. A $40,000 federal loan on a standard 10-year repayment plan costs about $400 per month. An income-driven plan might lower that to $200 or $300 per month, depending on your income. That monthly number is what gets subtracted from your gross income when a mortgage lender calculates whether you can afford a home, or when a landlord decides whether to rent to you.

Most mortgage lenders use a debt-to-income ratio of 43 percent or lower, meaning your total monthly debt payments (car loans, credit cards, student loans, the new mortgage) cannot exceed 43 percent of your gross monthly income. If you earn $5,000 per month and your student loan payment is $400, that leaves you $1,750 per month for a mortgage payment, property taxes, insurance, and any other debt. A $400 student loan payment can easily be the difference between may have access to for a $200,000 home and a $150,000 home. Landlords often use similar math: they want to see that your rent does not exceed 30 percent of gross income, and they factor in your other debts when deciding whether you are a reliable tenant.

How repayment plans change what you owe each month

The repayment plan you choose directly changes your monthly payment and therefore your housing options. Federal student loans offer several repayment paths: the Standard Plan (10 years, fixed payment), income-driven plans (20 to 25 years, payment based on income), and graduated plans (10 years, payment starts low and rises). Private loans typically offer fewer options and are usually not may be able to access for income-driven plans.

Income-driven repayment plans can lower your monthly payment significantly if your income is low. Under the SAVE plan (Saving on a Valuable Education), borrowers with no income may owe $0 per month, while those earning $30,000 per year might owe $150 to $200 per month on a $40,000 loan. That lower payment helps you may have access to for housing. However, income-driven plans extend your repayment period to 20 or 25 years, meaning you pay more interest overall and carry the debt longer. You also have to recertify your income annually, and your payment can increase if your income rises. If you leave an income-driven plan, your payment jumps back to the standard amount.

Student loan debt and your credit score

Student loan debt affects your credit score in two ways: payment history and credit utilization. If you make your payments on time, federal student loans help your credit score by showing lenders you can manage long-term debt responsibly. If you miss payments, your score drops quickly. Late payments stay on your credit report for seven years and make it harder to rent an apartment or may have access to for a mortgage.

Your credit score directly affects housing. Landlords often run credit checks and may reject applicants with scores below 600 or 650, depending on the market. Mortgage lenders typically require a score of at least 620 for an FHA loan and 740 or higher for conventional loans with the best interest rates. A single late student loan payment can drop your score 100 points or more, which can cost you thousands of dollars in higher mortgage interest or disqualify you from renting altogether. Keeping your student loan payments current is one of the most direct ways to protect your housing options.

Deferment, forbearance, and what happens to your debt when you pause payments

If you cannot afford your student loan payment, you can request deferment or forbearance to temporarily pause payments. These are not forgiveness — your debt remains, and interest may continue to accrue. The difference matters for your housing situation because paused payments still appear on your credit report, and lenders may view them differently.

Deferment is available for federal loans if you are unemployed, in school, or facing economic hardship. During deferment, interest on subsidized loans does not accrue, but interest on unsubsidized loans continues to grow. Forbearance is available for federal and some private loans and pauses your payment for up to 12 months, but interest always accrues. Both options keep you from defaulting and damaging your credit, but neither erases the debt or lowers your long-term balance. If you are considering deferment or forbearance because you cannot afford housing, talk to your loan servicer about income-driven repayment plans instead — they may lower your payment without pausing it, which is better for your credit score and housing prospects.

How to find out exactly what you owe

Your loan servicer — the company that collects your payments — has your exact balance and payment amount. You can find your servicer by logging into studentaid.gov with your Federal Student Aid ID, or by calling the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). Your servicer can tell you your current balance, interest rate, monthly payment under your current plan, and what your payment would be under other repayment options.

For private loans, contact the lender directly or check your credit report. Your credit report from Equifax, Experian, or TransUnion lists all your loans, balances, and payment history. You can request a free credit report once per year at annualcreditreport.com. Knowing your exact numbers — total balance, monthly payment, interest rate, and repayment plan — is the first step to understanding how your student debt affects your housing options and what changes might help.

Frequently Asked Questions

Does student loan debt count against me when I apply to rent an apartment?

Yes. Landlords typically review your credit report and calculate your debt-to-income ratio. Your monthly student loan payment reduces the income they think you have available for rent. If your payment is high relative to your income, a landlord may reject your application or require a co-signer. Some landlords ignore student debt if your payment history is clean, but most factor it in.

Can I get my student loans forgiven so I can afford housing?

Federal loan forgiveness programs exist but have strict requirements and long timelines. Public Service Loan Forgiveness requires 10 years of payments while working for a government or nonprofit employer. Income-Contingent Repayment forgiveness requires 25 years of payments. These programs do not help you afford housing now — they help decades from now. Income-driven repayment plans lower your monthly payment immediately and may be more useful if housing affordability is your concern.

What if my student loan payment is so high I cannot afford rent?

Contact your loan servicer and ask about income-driven repayment plans. These can lower your payment to as little as $0 per month if your income is low enough. You can also explore deferment or forbearance as a temporary measure, though these do not lower your payment — they pause it. If you are in default, contact your servicer about rehabilitation, which can restore your loan to good standing and stop wage garnishment.

Does paying off my student loans faster help me rent or buy a home sooner?

Paying faster lowers your total interest but does not immediately improve your housing options. What matters to landlords and lenders is your monthly payment and credit score. Paying extra toward your loans does not lower your monthly payment — it just shortens how long you carry the debt. If your goal is to may have access to for housing sooner, lowering your monthly payment through an income-driven plan or refinancing may help more than paying extra.

How does student loan debt affect my ability to get a mortgage?

Mortgage lenders use your debt-to-income ratio, which includes your student loan payment. If your payment is high, it reduces the size of the mortgage you can may have access to for. A $400 monthly student loan payment on a $5,000 monthly income can reduce your mortgage qualification by $50,000 to $100,000 or more, depending on the lender. Lowering your payment through income-driven repayment or paying down the balance can increase your mortgage qualification.