Who has the highest student loan balance?
By the numbers: Borrowers between 35 and 49 years old owe the most in federal student loans, according to Federal Student Aid data. Details: Women typically borrow more for college than men, according to NerdWallet, a personal finance company.
By the numbers: Borrowers between 35 and 49 years old owe the most in federal student loans, according to Federal Student Aid data. Details: Women typically borrow more for college than men, according to NerdWallet, a personal finance company.
Most student loans — about 92% — are owned by the U.S. Department of Education.
| Student's living arrangements | Maximum Maintenance Loan for the 2023/24 academic year |
|---|---|
| Living with parents | ÂŁ8,400 |
| Studying in London and not living with parents | ÂŁ13,022 |
| Studying outside London and not living with parents | ÂŁ9,978 |
| Living and studying abroad for at least one term as part of their UK course | ÂŁ11,427 |
If you are an undergraduate student, the maximum amount you can borrow each year in Direct Subsidized Loans and Direct Unsubsidized Loans ranges from $5,500 to $12,500 per year, depending on what year you are in school and your dependency status.
While the majority of students graduate with less than $20,000 in debt, a small portion of borrowers hold an outsize share of student debt. More than one-third of the total debt is held by the 7 percent of borrowers who owe more than $100,000.
Meru said, “you'd have a mental breakdown.” Due to escalating tuition and easy credit, the U.S. has 101 people who owe at least $1 million in federal student loans, according to the Education Department. Five years ago, 14 people owed that much. More could join that group.
Most debt belongs to 25- to 34-year-olds; 35- to 49-year-olds owe the most on average, exceeding 50- to 61-year-olds by 8.0%. 104,800 federal borrowers aged 24 years and younger owe an average $14,599 each for a total of $1.53 billion.
Americans own $1.77 trillion in federal and private student loan debt as of the second quarter of 2023. That's up 1.25% from the second quarter of 2022. $128.77 billion of that total through March 31, 2023, is private student loan debt.
At the end of 2022, the Federal Reserve reported that roughly 43.5 million Americans have student loan debt, which totals over $1.7 trillion.
Why is it so hard to pay off student loans?
Interest can make student loans more expensive, while inflation can make that debt harder to manage alongside other bills. Paying off some of your debt during your studies could ease the burden later on and save you money on interest.
About 64 percent of students seeking a bachelor's degree from a four-year public institution have student loan debt. 34 percent of borrowers owed $10,000 or less in federal student loans, and 79 percent owed $40,000 or less.
If you default on your student loan, that status will be reported to national credit reporting agencies. This reporting may damage your credit rating and future borrowing ability. Also, the government can collect on your loans by taking funds from your wages, tax refunds, and other government payments.
If you've exhausted other options and still need additional funds to help you pay for school, contact your school's financial aid office to find out if you're eligible for additional federal student loans. Just remember to borrow only what you need to pay your educational expenses.
The average student loan debt amount is slightly over $30,000. However, many borrowers owe $50,000 or more in student loan debt. This isn't impossible to overcome using the right repayment methods.
As of 2023, there are one million federal student loan borrowers who owe $200,000 or more, according to StudentAid.gov. The good news is that even though paying off such a large balance can be difficult, it's not impossible. You can refinance your loans or add a cosigner to improve or lower your interest rate.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.
In 2023, 9.9 million borrowers held between $20,000-$40,000 in student loan debt, the largest group of borrowers by debt size. About 19.2 million borrowers had student debt between $10,000-$40,000. This group made up about 42% of all student loan borrowers. Only 1 million borrowers had debt over $200,000.
Student loan debt for Gen Z
As of 2023, the average Gen Z borrower has an outstanding student loan balance of $24,473. 66.7% of older Gen Zers had $20,000 or less in student debt in 2022.
Average dental school debt: $293,900
As of 2022, the average dental school grad carried $293,900 in loans, while the average debt load for a graduate of the Class of 2022 was a slightly lower $286,200, according to the Education Data Initiative.
Why do Millennials have so much debt?
King said millennials' purchasing preferences and the soaring cost of living has led many into "a vicious cycle of taking on more debt." Many were "forced" to rely on credit cards and loans to meet their needs, adding to their "crippling debt pile."
The federal government or a commercial entity owns your student loans. Private companies own all private loans. The U.S. Department of Education holds most federal loans. Both the Department of Education and private institutions partner with third parties called student loan servicers.
Robert Smith, the billionaire who went viral last year for paying off the debt of students at Morehouse College, admitted to an illegal scheme to conceal income and evade taxes by using offshore trusts and bank accounts for 15 years.
The average student borrower takes 20 years to pay off their student loan debt. Some professional graduates take over 45 years to repay student loans. 21% of borrowers see their total student loan debt balance increase in the first 5 years of their loan.
Here's the average debt balances by age group: Gen Z (ages 18 to 23): $9,593. Millennials (ages 24 to 39): $78,396. Gen X (ages 40 to 55): $135,841.
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