The Current Number of Americans With Student Loans
About 43 million Americans hold student loan debt as of 2024, according to the Federal Reserve and U.S. Department of Education data. This represents roughly one in seven adults in the country. The total amount owed across all student loans sits around $1.7 trillion, making it the second-largest category of consumer debt after mortgages.
These figures have grown steadily over the past two decades. In 2004, roughly 30 million Americans held student debt. The increase reflects both more people attending college and rising tuition costs that require larger loans to cover the same education.
The number of borrowers and total debt outstanding shift as people repay loans, take out new ones, and as federal policy changes. The pause on federal student loan payments that began in 2020 ended in October 2023, which means repayment numbers and default rates may shift in the coming years as borrowers resume monthly payments.
Key Takeaways
- Approximately 43 million Americans currently hold student loan debt, representing about one in seven adults.
- The total student loan debt in the United States is around $1.7 trillion, second only to mortgage debt.
- Student loan borrowers include recent graduates, mid-career professionals, and people who attended college decades ago.
- Federal loans make up the majority of outstanding student debt, though private loans account for a significant portion of new borrowing.
- The average borrower with student debt owes between $28,000 and $37,000, though amounts vary widely based on degree type and school attended.
Who Holds Student Loan Debt
Student loan borrowers span all age groups, though the largest concentration is people in their 20s and 30s. However, roughly 7 million borrowers are over age 50, and some are in their 60s and 70s—either because they attended college later in life or because they co-signed loans for children and grandchildren and remain responsible for repayment.
Borrowers with graduate degrees (master's degrees, law degrees, medical degrees) tend to owe more than those with bachelor's degrees. The median debt for a graduate degree holder is significantly higher because advanced programs cost more and often require additional years of schooling. Undergraduate borrowers typically owe less per person but represent a larger share of the total borrower population.
Income levels vary widely among borrowers. Some earn six figures and manage their debt easily; others earn modest incomes and struggle with monthly payments. Student debt is distributed across all income brackets, though lower-income borrowers often face greater hardship relative to their earnings.
Federal Loans Versus Private Student Loans
Federal student loans account for roughly 92% of all outstanding student debt. These include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Federal Perkins Loans. Federal loans come with protections like income-driven repayment plans, deferment and forbearance options, and loan forgiveness programs that private lenders do not offer.
Private student loans make up the remaining 8% of outstanding debt. These loans come from banks, credit unions, and other private lenders. Private loans typically have fewer borrower protections, higher interest rates, and less flexible repayment terms than federal loans. Many private borrowers cannot access income-driven repayment plans or forgiveness programs.
The split between federal and private debt has remained relatively stable, though the composition of new borrowing shifts year to year based on federal policy changes and interest rate environments.
How Student Debt Breaks Down by Loan Type
| Loan Type | Approximate Share of Total Debt | Key Characteristics |
|---|---|---|
| Direct Subsidized Loans | 20% | Government pays interest while borrower is in school; available to undergraduate students with financial need |
| Direct Unsubsidized Loans | 40% | Interest accrues while borrower is in school; available to undergraduate and graduate students regardless of need |
| Direct PLUS Loans | 15% | Parent PLUS loans for parents of dependent students; Grad PLUS loans for graduate students; higher interest rates |
| Private Student Loans | 8% | Issued by banks and credit unions; variable or fixed rates; fewer repayment options |
| Federal Perkins Loans and Other | 17% | Older federal loan programs; some no longer issued but still in repayment |
Regional and Demographic Patterns in Student Debt
Student debt is not evenly distributed across the country. States with higher college attendance rates and higher tuition costs tend to have more borrowers and higher average debt amounts. The Northeast and West Coast generally see higher average debt per borrower than the South and Midwest, though this varies by individual state and institution.
Demographic breakdowns show that Black borrowers and Hispanic borrowers carry higher average debt loads than white borrowers, even when controlling for degree type. This gap reflects both differences in family wealth available to help pay for college and differences in the types of schools attended. First-generation college students—those whose parents did not attend college—also tend to borrow more than students whose parents have college degrees.
Women represent about 56% of student loan borrowers and hold roughly 66% of outstanding student debt. This reflects both higher college attendance rates among women and, in some cases, lower average earnings after graduation, which can make repayment more difficult.
What Happened to Borrowers During the Payment Pause
From March 2020 through September 2023, the federal government paused payments on most federal student loans and set the interest rate to 0%. During this period, borrowers were not required to make monthly payments, and no interest accrued on their loans. This pause affected roughly 43 million borrowers and was extended multiple times.
The pause ended on October 1, 2023, and borrowers resumed making monthly payments. The Department of Education provided a transition period and income-driven repayment plan adjustments to help borrowers restart payments. However, the pause created a period of three and a half years during which borrowers' debt balances did not grow due to interest, which is not typical of how student loans normally work.
Some borrowers used the pause to pay down principal; others made no payments at all. The resumption of payments has affected household budgets across the country and may influence borrowing patterns for future students.
Why Student Debt Numbers Keep Growing
Student debt has grown for several reasons. College tuition has risen faster than inflation for decades, meaning each year of school costs more in real dollars than it did in previous years. At the same time, more people are attending college, and more are pursuing graduate degrees. Wages for college graduates have not kept pace with tuition increases, so borrowers need larger loans relative to their expected earnings.
Federal policy has also shaped the numbers. The expansion of federal loan programs in the 1990s and 2000s made borrowing easier and more accessible. Private lenders entered the market aggressively in the 2000s, though their share has declined since the financial crisis of 2008. Changes to income-driven repayment plans have also affected how long borrowers take to repay and how much they ultimately owe.
Interest accrual is another factor. When borrowers do not make payments during school or during deferment periods, unpaid interest capitalizes—meaning it gets added to the principal balance. This causes the debt to grow even without new borrowing.
Frequently Asked Questions
How much does the average student loan borrower owe?
The average borrower with student debt owes between $28,000 and $37,000, depending on the data source and year. However, this average masks wide variation. Some borrowers owe under $10,000; others owe over $100,000, particularly those with graduate degrees or those who attended expensive private schools.
Are student loan numbers still growing?
The number of borrowers has remained relatively stable in recent years, hovering around 43 million. However, the total amount of debt outstanding can still grow if existing borrowers take out additional loans or if interest accrues faster than payments reduce the balance. The trajectory depends on enrollment trends and federal policy.
What percentage of Americans have student loan debt?
Roughly 10 to 11% of all Americans hold student loan debt. This percentage is higher among adults in their 20s and 30s (around 35 to 40%) and lower among older adults. The percentage varies by education level, income, and region.
Do all student loan borrowers struggle with repayment?
No. Many borrowers repay their loans without difficulty, particularly those with higher incomes or those who borrowed smaller amounts. However, surveys show that a significant share of borrowers report difficulty making payments, and default and delinquency rates have been tracked by the Department of Education for decades.
Can student loan debt be forgiven?
Federal student loans may be forgiven through several programs, including Public Service Loan Forgiveness (for government and nonprofit employees), income-driven repayment plan forgiveness (after 20 to 25 years of payments), and teacher loan forgiveness programs. Private loans generally cannot be forgiven through government programs, though some private lenders offer their own discharge options in limited circumstances.