The current number of student loan borrowers in the United States
Roughly 43 million Americans hold student loan debt as of 2024. That figure includes federal loans, private loans, and Parent PLUS loans. The total amount owed across all borrowers exceeds $1.7 trillion, making student debt the second-largest category of consumer debt after mortgages.
The number of borrowers has grown steadily over the past two decades as college costs have risen and more students have turned to loans to pay for education. The average borrower carries between $28,000 and $37,000 in debt, though this varies significantly by degree type, school, and whether the person completed their program.
These figures come from the Federal Reserve, the U.S. Department of Education, and the Consumer Financial Protection Bureau, which track loan volume and borrower counts through federal loan servicers and private lenders. The exact count shifts as borrowers repay loans, default, or take on additional debt.
Key Takeaways
- Approximately 43 million Americans currently hold student loan debt from federal or private sources.
- Student debt totals over $1.7 trillion across all borrowers, making it the second-largest consumer debt category after mortgages.
- The average borrower owes between $28,000 and $37,000, though amounts vary widely based on degree level and school type.
- About one in five American adults carries student loan debt, and the number of borrowers has roughly doubled since 2006.
How the borrower count breaks down by age and education level
Student loan borrowers are not evenly distributed across age groups. The largest concentration is adults aged 25 to 34, who often graduated during or after the 2008 financial crisis when tuition was rising sharply. Adults aged 35 to 49 make up the second-largest group, and a growing number of borrowers are over 50, often carrying Parent PLUS loans or returning to school later in life.
By education level, borrowers with graduate or professional degrees (master's degrees, law degrees, medical degrees) carry the highest average balances—often $50,000 to $100,000 or more. Bachelor's degree holders typically owe $25,000 to $35,000. Those who attended college but did not finish often carry debt without the earning power that a degree provides, making repayment harder.
About 92% of federal student loans are held by borrowers who attended public or nonprofit schools. The remaining 8% attended for-profit institutions, which tend to have higher default rates and lower completion rates.
Federal loans versus private loans among borrowers
Federal student loans account for roughly 92% of all student debt. These loans are issued by the U.S. Department of Education and include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Federal Perkins Loans. Federal loans carry fixed interest rates set by Congress, income-driven repayment options, and forgiveness programs.
Private student loans make up the remaining 8% of the market. These are issued by banks, credit unions, and other lenders and typically require a credit check or cosigner. Private loans usually have variable interest rates and fewer repayment protections than federal loans. Borrowers with private loans cannot access income-driven repayment plans or federal forgiveness programs.
Many borrowers hold both types. A typical scenario is a student who maxed out federal loan limits and then took a private loan to cover remaining costs. The mix of federal and private debt affects which repayment and forgiveness options are available.
Why the number of borrowers has grown over time
The student loan borrower population has roughly doubled since 2006. Several factors drove this growth. College tuition at public four-year universities increased by more than 150% between 2000 and 2020, adjusted for inflation. As tuition rose faster than family income and grant funding, more students borrowed to bridge the gap.
Enrollment in higher education also expanded. More high school graduates went to college, and more adults returned to school for additional degrees or credentials. Graduate school enrollment grew particularly fast, and graduate students borrow at higher rates than undergraduates.
The 2008 financial crisis accelerated borrowing. Families lost savings and home equity, making them less able to pay for college out of pocket. At the same time, job prospects for high school graduates worsened, pushing more people toward college as a path to employment.
Regional and demographic differences in borrower concentration
Student loan debt is not evenly spread across the country. States with higher college enrollment rates and higher tuition costs tend to have more borrowers per capita. The Northeast and West Coast generally have higher concentrations of borrowers than the South and Midwest, though this reflects both tuition levels and regional education patterns.
By race and ethnicity, Black borrowers carry higher average debt loads than white borrowers with the same degree level. This gap reflects differences in family wealth, access to grants, and the schools attended. Black college graduates borrow more on average than white college graduates, and they take longer to repay.
Income also shapes borrowing patterns. Students from families earning less than $30,000 per year borrow at higher rates than students from families earning more than $100,000 per year. Lower-income borrowers are also more likely to attend for-profit schools, which have higher debt-to-earnings ratios.
What happens to borrowers who default or stop paying
When a federal student loan goes unpaid for 270 days (about nine months), it enters default. The borrower loses access to income-driven repayment plans and deferment options. The loan is referred to the U.S. Department of Education's debt collection program, which can garnish wages, intercept tax refunds, and offset Social Security payments.
Default rates vary by school type and borrower demographics. For-profit college borrowers have default rates around 15% within three years of leaving school. Public university borrowers default at lower rates, around 7% to 10%. Borrowers who did not complete their degree default at much higher rates than those who graduated.
Private loan default is handled by the lender and can result in lawsuits, wage garnishment, and damage to credit scores. Private loans do not have the same safety nets as federal loans, such as income-driven repayment or temporary forbearance.
How borrower numbers compare to other countries
The United States has a much larger student loan system than other developed nations. Most European countries charge little or no tuition at public universities and fund higher education through taxes. Countries like Germany, Norway, and France have far fewer borrowers and much lower average debt per student.
The United Kingdom introduced student loans in the 1990s and has seen borrowing grow significantly, though the system differs from the U.S. model. Australian student loans are income-contingent, meaning repayment is tied to earnings. Canada has a smaller loan market relative to population than the United States.
The U.S. approach—where students and families bear most of the cost through loans—is unusual among wealthy nations. This structure means the U.S. has both more borrowers and higher average debt than comparable countries.
Frequently Asked Questions
What percentage of American adults have student loan debt?
Approximately one in five American adults—about 20%—carries student loan debt. This includes borrowers of all ages, from recent graduates to people in their 60s and 70s who took out Parent PLUS loans or returned to school later in life.
Do most college graduates have student loans?
No. About 65% of bachelor's degree recipients graduate with debt, meaning roughly 35% graduate debt-free. Debt rates are higher for graduate degree holders—around 75% of master's degree recipients borrow. Rates vary by school type and family income.
How many people have defaulted on student loans?
Roughly 3.4 million borrowers are currently in default on federal student loans, though this number fluctuates. Default rates are higher among borrowers who attended for-profit schools or did not complete their degree. Many more borrowers are behind on payments but not yet in official default.
Are student loan numbers still growing?
The total dollar amount of student debt continues to grow, but the number of new borrowers has slowed since 2010. Enrollment in higher education has plateaued in some regions, and some students are choosing alternatives like community college or trade schools to avoid debt.
What is the difference between the number of borrowers and the number of loans?
One borrower can hold multiple loans. The 43 million borrower figure counts individual people, while the total number of loans outstanding is much higher—over 200 million individual loan accounts. A single borrower might have a subsidized loan, an unsubsidized loan, and a Parent PLUS loan.