The scale of student loan debt in the United States

Roughly 43 million Americans hold federal student loan debt. That number includes people still in school, people actively repaying, and people whose loans are in deferment or forbearance. The total amount owed across all federal student loans is approximately $1.7 trillion, though this figure changes as borrowers repay and new students take out loans each year.

These figures come from the U.S. Department of Education and the Federal Reserve, which track federal loan portfolios separately from private student loans. Private loans add another layer — estimates suggest 8 to 10 million borrowers hold private student debt, though exact numbers are harder to pin down because private lenders do not report to a single central database the way federal loan servicers do.

The number of borrowers and total debt both fluctuate. During the federal student loan payment pause (March 2020 through December 2023), no borrowers were required to make payments, which affected how many people were actively repaying at any given moment. Once repayment resumed in October 2023, the composition of the borrowing population shifted again.

Key Takeaways

  • Approximately 43 million Americans hold federal student loan debt, representing roughly one in eight adults in the country.
  • The total federal student loan debt is around $1.7 trillion, though this amount changes as borrowers repay and new loans are issued each year.
  • Private student loans are held by an estimated 8 to 10 million additional borrowers, but exact numbers are not centrally tracked.
  • The number of active borrowers and repayment status shifts when federal policies change, such as payment pauses or loan forgiveness programs.
  • Debt levels and borrower counts vary significantly by age, education level, and state, so national averages do not reflect every person's situation.

Who holds the most student debt

Borrowers aged 25 to 34 carry the largest share of federal student loan debt by age group. This cohort entered college during and after the 2008 financial crisis, when tuition costs were rising and federal loans became the primary way families financed higher education. Older borrowers (35 to 49) also hold substantial debt, often from their own education or from Parent PLUS loans taken out for their children.

Graduate degree holders carry higher average balances than undergraduate-only borrowers. Someone with a master's degree or professional degree (law, medicine, dentistry) typically owes more in total, though their income is often higher as well. Borrowers who attended for-profit colleges or did not complete a degree tend to have worse repayment outcomes relative to what they owe.

Debt levels also vary by state. States with higher tuition at public universities and lower average household income tend to have higher per-borrower debt. States with strong community college systems or lower tuition sometimes show lower average balances, though this is not universal.

How debt levels have changed over time

Student loan debt has grown substantially since 2000. In 2000, total federal student loan debt was roughly $100 billion. By 2010, it had reached approximately $800 billion. The jump reflects both rising tuition costs and an increase in the number of people attending college and taking out loans.

The average balance per borrower has also risen. In 2000, the median federal student loan balance was around $10,000 (adjusted for inflation). By 2023, it had roughly doubled. This increase is driven by longer time in school, higher tuition, and more borrowers pursuing graduate degrees.

The rate of growth slowed after 2010, partly because fewer people took out new loans during the pandemic and partly because some borrowers paid down debt faster. However, the total amount owed remains historically high.

The difference between federal and private student loans

Federal student loans are issued or may provide by the U.S. Department of Education. They include Direct Loans (Subsidized, Unsubsidized, and PLUS loans), Perkins Loans, and older loan types like Stafford and FFEL loans. The federal government knows exactly how many borrowers hold each type and how much they owe in total.

Private student loans are issued by banks, credit unions, and other private lenders. They are not backed by the federal government, and lenders do not report to a central registry. This means the exact number of private borrowers and total private debt are estimates based on surveys and lender reports, not precise counts.

Private loans typically have higher interest rates and fewer repayment options than federal loans. Borrowers with private debt cannot use income-driven repayment plans or access federal forgiveness programs. Because of this, private borrowers often have less flexibility if their income drops or they face hardship.

What the debt numbers mean for different groups

For recent college graduates, student loan debt is often the largest debt they carry outside of a mortgage. The median federal student loan balance for someone who borrowed is around $28,000 to $35,000, though this varies widely. Someone who attended a private university or pursued a graduate degree may owe significantly more.

For older borrowers, student debt can complicate retirement planning. Some borrowers in their 50s and 60s still carry loans from their own education or from Parent PLUS loans. Federal programs like Public Service Loan Forgiveness and income-driven repayment can help, but they require specific employment or income situations.

For borrowers who did not complete a degree, the debt-to-income ratio is often worse. They owe money but do not have the degree that typically leads to higher earnings, making repayment harder.

How borrower counts shift with policy changes

The number of people counted as "having student loan debt" can change based on how debt is measured. During the federal payment pause, some borrowers were in forbearance (temporarily not required to pay) but still owed the debt. Once repayment resumed, the number of active borrowers increased, but the total number of people with outstanding balances remained roughly the same.

Loan forgiveness programs also affect these numbers. When the Biden administration announced the Student Debt Relief Plan in 2022 (which faced legal challenges and was not fully implemented), it would have reduced the number of borrowers with outstanding debt and lowered total debt if it had gone forward. Even partial forgiveness changes the composition of who owes what.

Income-driven repayment plans can extend the time someone is counted as a borrower. A person on a 20-year income-driven plan is still a borrower for 20 years, even if they pay very little each month. This means the borrower count reflects both people actively paying down debt and people in long-term repayment arrangements.

Frequently Asked Questions

What percentage of Americans have student loan debt?

Approximately 43 million Americans hold federal student loan debt, which represents roughly one in eight adults. This percentage varies by age — it is much higher among people aged 25 to 40 and lower among those over 50 or under 22. The percentage also differs by state and education level.

Is student loan debt still growing?

Total federal student loan debt has stabilized in recent years after decades of rapid growth. New borrowers continue to take out loans each year, but the rate of growth has slowed. Private student loan debt has grown more slowly than federal debt since 2010.

How much does the average person with student loans owe?

The median federal student loan balance for someone who borrowed is approximately $28,000 to $35,000, though this varies widely by education level and type of degree. Graduate degree holders often owe significantly more. These figures do not include private loans, which add to the total for some borrowers.

Do these numbers include Parent PLUS loans?

Yes. Parent PLUS loans are federal loans taken out by parents to pay for their child's education. They are counted in the 43 million borrower figure and the $1.7 trillion total. Parents who borrowed are counted as borrowers even if their child has already finished school.

Why do the numbers change so often?

Student loan figures change because new borrowers enter repayment, existing borrowers pay off their loans, and policy changes affect how debt is counted. The Department of Education updates its data quarterly, so the most recent published numbers may be several months old.