The current number of student loan borrowers in the United States

About 43 million Americans hold student loan debt as of the most recent federal data. This figure includes people who borrowed from federal student loan programs, private lenders, or both. The number has grown steadily over the past two decades as college costs have risen and more people have pursued higher education.

The total amount owed across all borrowers is roughly $1.7 trillion, though this figure changes as people repay loans, default, or take out new ones. The average balance per borrower varies widely depending on the type of degree, the school attended, and how much was borrowed.

Key Takeaways

  • Approximately 43 million Americans currently carry student loan debt from federal or private sources.
  • Student loan debt has grown significantly over the past 20 years as college tuition costs have increased.
  • The average balance owed varies by borrower, ranging from a few thousand dollars to over $100,000 for advanced degrees.
  • Federal student loans make up the majority of outstanding debt, with private loans accounting for a smaller portion.
  • Student loan debt affects major life decisions for many borrowers, including home purchases, marriage, and career choices.

How student loan debt breaks down by type

Federal student loans account for the vast majority of outstanding student debt. These include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and older Federal Family Education Loans (FFEL). The federal government tracks these borrowers through the National Student Loan Data System.

Private student loans make up a smaller share of total debt. These come from banks, credit unions, and other private lenders. Private loan borrowers are not tracked in a single federal database, so the exact number is harder to pin down, but estimates suggest private loans represent roughly 8 to 10 percent of all student debt.

Who holds the most student loan debt

Borrowers with graduate or professional degrees tend to carry the highest balances. A person who earned a master's degree, law degree, or medical degree often borrowed significantly more than someone who stopped after a bachelor's degree. Graduate school loans are typically larger because tuition is higher and borrowers often take out additional loans to cover living expenses during longer programs.

Age also matters. Borrowers in their 30s and 40s hold the largest total amount of student debt, both because they borrowed more in absolute terms and because younger borrowers have had less time to repay. Borrowers over 60 represent a growing segment of the population still carrying student loans, sometimes from their own education and sometimes from Parent PLUS loans they took out for their children.

Why the number of borrowers has grown

College enrollment increased significantly starting in the 1990s. More high school graduates chose to attend four-year universities, and more adults returned to school for additional credentials. At the same time, the cost of college tuition rose faster than inflation, making loans necessary for families that might have paid out of pocket in earlier decades.

Federal loan programs also expanded access. The introduction of Direct Loans in the 1990s and the removal of aggregate loan limits for graduate students made it easier to borrow larger amounts. Private lenders also entered the market more aggressively, offering loans to students whose federal borrowing had reached its limit.

Regional and demographic patterns in student debt

Student loan debt is not evenly distributed across the country. States with higher college enrollment rates and more expensive universities tend to have more borrowers per capita. The Northeast and West Coast regions have higher average balances than the South and Midwest, though this varies by individual circumstances.

Demographic breakdowns show that Black and Latino borrowers tend to carry higher average balances than white borrowers, even when controlling for degree type. This gap reflects differences in family wealth, access to scholarships, and the types of schools attended. First-generation college students also tend to borrow more than students whose parents attended college.

What happens to borrowers who stop paying

When a federal student loan borrower stops making payments, the loan enters delinquency. After 270 days of missed payments, the loan goes into default. Defaulted loans can result in wage garnishment, tax refund seizure, and damage to credit scores. The number of borrowers in default has fluctuated over time, particularly during economic downturns and during periods when federal loan payments were paused.

Private loan defaults are handled differently and may result in lawsuits or collection actions. Private lenders have fewer options than the federal government for collecting, but they can pursue legal remedies more quickly. The number of people in default on private loans is generally smaller than federal defaults, but data on private loan defaults is less transparent.

How student debt compares to other types of debt

Student loans are now the second-largest category of consumer debt in the United States, behind only mortgage debt. Credit card debt and auto loans are smaller in total volume. Unlike credit card debt, which carries much higher interest rates, student loans typically have lower rates and longer repayment periods, which is why the total amount can be so large.

The long repayment timeline means student debt affects borrowers' financial lives for decades. A 22-year-old who graduates with $30,000 in federal loans might not finish repaying until their 50s, depending on the repayment plan chosen. This extended timeline shapes decisions about buying homes, starting families, and saving for retirement.

Frequently Asked Questions

Is the number of student loan borrowers still growing?

The number of borrowers has stabilized in recent years after decades of growth. College enrollment rates have plateaued, and some borrowers have finished repaying. However, new borrowers continue to enter the system each year as students take out loans for college.

How much does the average borrower owe?

The average federal student loan balance per borrower is roughly $37,000 to $40,000, though this varies significantly. Someone who borrowed only for a bachelor's degree might owe $20,000, while someone with a graduate degree could owe $100,000 or more. Private loan balances average lower because fewer people borrow through private lenders.

What percentage of Americans have student loan debt?

Roughly 13 to 14 percent of all American adults carry student loan debt. This percentage is higher among younger adults — about 30 to 35 percent of people in their 20s and 30s have student loans. The percentage decreases with age as borrowers repay and older generations had lower college enrollment rates.

Do student loans affect the housing market?

Yes. Borrowers with student loan debt are less likely to own homes and tend to buy homes later in life than borrowers without student debt. Lenders consider student loan payments when calculating debt-to-income ratios for mortgages, which can reduce the amount someone can borrow for a home.

Are more people defaulting on student loans?

Default rates have varied over time. During the 2008 financial crisis and the COVID-19 pandemic, defaults increased. Federal loan payments were paused during the pandemic, which temporarily reduced the number of people in default. Default rates depend on economic conditions, employment, and whether borrowers have access to income-driven repayment plans.