The total amount of student loan debt in the United States

Student loan debt in the United States totals over $1.7 trillion across roughly 43 million borrowers. That figure includes federal loans, private loans, and Parent PLUS loans. The number has grown steadily over the past two decades as college costs have risen and more people have taken out loans to pay for education.

This total is spread unevenly. Some borrowers owe under $10,000, while others carry six-figure balances. The average federal student loan balance per borrower is around $37,000, though this varies significantly by age, degree type, and when someone borrowed.

Key Takeaways

  • Total U.S. student loan debt exceeds $1.7 trillion held by approximately 43 million borrowers across federal and private loans.
  • The average federal student loan balance is around $37,000 per borrower, but this varies widely based on degree level and when the loan was taken out.
  • Graduate degree holders typically carry the highest balances, often exceeding $50,000, while undergraduate-only borrowers average lower amounts.
  • Student loan debt is the second-largest form of consumer debt in the United States after mortgages, affecting housing, marriage, and retirement decisions for millions.

How debt breaks down by degree level

Borrowers who earned graduate or professional degrees carry substantially more debt than those with undergraduate degrees only. Someone who completed a master's degree, law degree, or medical degree often borrowed for six to eight years of education, which compounds the total owed.

Undergraduate borrowers who took federal loans typically owe between $25,000 and $40,000 at graduation. Graduate borrowers in fields like law, medicine, and business often owe $100,000 or more. Parent PLUS loans, which parents take out to cover their children's education costs, add another layer—parents who borrowed through this program carry an average balance of around $35,000.

Private versus federal student loans in the total debt picture

Federal student loans make up the majority of the $1.7 trillion total—roughly 92 percent. Private student loans account for the remainder. Federal loans are issued by the U.S. Department of Education, while private loans come from banks, credit unions, and other lenders.

Private loan balances tend to be smaller per borrower on average, but private loans often carry higher interest rates and fewer repayment options than federal loans. Someone with a mix of both types of debt may owe less in total but pay more in interest over time if the private portion carries a higher rate.

Why student loan debt has grown so much

College tuition and fees have risen faster than inflation for decades. In the 1980s, the average cost of a year at a public four-year university was roughly $1,200. Today that same year costs over $9,000 in tuition and fees alone, not counting room, board, and books. As prices climbed, more students borrowed to cover the gap between what they could pay and what college actually cost.

The number of borrowers has also grown because more people pursue higher education overall. Additionally, graduate school enrollment has increased, and graduate programs are expensive. Federal loan limits have risen over time to keep pace with costs, which means borrowers can borrow more than they could decades ago.

How student loan debt compares to other types of consumer debt

Student loan debt is the second-largest category of consumer debt in the United States, behind only mortgage debt. Credit card debt totals roughly $1 trillion, auto loan debt around $1.4 trillion, and medical debt varies widely depending on how it is measured. Student loans exceed all of these except mortgages.

Unlike credit card debt, which can be discharged in bankruptcy, student loan debt is generally not dischargeable except in rare circumstances. This makes student loans a unique burden—borrowers cannot straightforward walk away from the obligation the way they might with other debts. The permanence of student loan debt affects major life decisions for millions of people.

Regional and demographic differences in debt levels

Student loan debt is not evenly distributed across the country or across demographic groups. Borrowers in states with higher college costs and lower average incomes tend to carry more debt relative to their earnings. Borrowers who attended private colleges or universities typically owe more than those who attended public institutions, even when controlling for degree level.

Age also matters. Borrowers in their late 20s and early 30s are most likely to be actively repaying student loans. Older borrowers may have paid off their loans or borrowed smaller amounts decades ago when college was cheaper. Younger borrowers are entering repayment now with higher balances than previous generations faced at the same age.

What happens when borrowers default or fall behind

When a federal student loan goes unpaid for 270 days, it enters default. At that point, the entire remaining balance becomes due when ready, and the borrower loses access to income-driven repayment plans and other flexible options. The government can garnish wages, intercept tax refunds, and offset Social Security payments to recover the debt.

Private student loans have different default rules depending on the lender, but the consequences are similarly serious. Defaulted loans damage credit scores, making it harder and more expensive to borrow for a car, home, or other needs. The debt does not disappear—it follows the borrower for years and can affect employment in fields that require background checks.

Frequently Asked Questions

Is $1.7 trillion the total amount owed right now, or does it include paid-off loans?

The $1.7 trillion figure represents debt currently owed by active borrowers—money that has not yet been repaid. It does not include loans that have already been paid off. This is the outstanding balance as of the most recent data available.

How much does the average person with student loans owe?

The average federal student loan balance per borrower is around $37,000. However, this average masks wide variation—some borrowers owe $5,000 while others owe $200,000 or more. Your own balance depends on how much you borrowed, what degree you pursued, and how long you have been repaying.

Does student loan debt include loans that are in deferment or forbearance?

Yes. The $1.7 trillion total includes all outstanding federal and private student loans, whether borrowers are actively making payments, in deferment, in forbearance, or in default. Deferment and forbearance pause payments temporarily but do not reduce the balance owed.

Why do graduate degree holders owe so much more than undergraduates?

Graduate programs last longer—often two to four additional years beyond the four-year undergraduate degree. Borrowers accumulate interest during school and take out larger loans each year because graduate programs are more expensive. A law student borrowing for three years of law school will owe substantially more than someone who borrowed for four years of undergraduate study.

Can student loan debt be forgiven or discharged?

Federal student loans may be forgiven through specific programs like Public Service Loan Forgiveness, which requires 120 may have access to payments while working for a government agency or nonprofit. Some federal loans are also discharged if the borrower becomes permanently disabled or if the school closes while they are enrolled. Private student loans generally cannot be forgiven and are not discharged in bankruptcy except in rare hardship cases.