The total amount of student loan debt in America

Americans collectively owe roughly $1.7 trillion in student loan debt as of 2024, spread across about 43 million borrowers. This figure includes federal loans made through programs like Direct Loans and PLUS loans, as well as private student loans from banks and other lenders. The total has grown steadily over the past two decades as college costs have risen and more people have borrowed to pay for education.

The $1.7 trillion figure is a snapshot — it changes monthly as borrowers make payments, take out new loans, and loans go into default. Federal loan data comes from the U.S. Department of Education, while private loan totals are harder to pin down because private lenders do not report to a single central database the way the federal government does.

To put this in perspective, student loan debt is now the second-largest category of consumer debt in America after mortgages. It exceeds credit card debt and auto loan debt combined. This scale matters because when that much money is owed, changes to loan terms, payment rules, or forgiveness programs affect millions of households at once.

Key Takeaways

  • Total student loan debt in America is approximately $1.7 trillion, held by about 43 million borrowers as of 2024.
  • Federal student loans make up the majority of this debt, while private student loans from banks and lenders account for a smaller but significant portion.
  • The average federal student loan balance per borrower is around $37,000, though this varies widely based on degree type and when the person borrowed.
  • Student loan debt has grown faster than wages over the past 20 years, which is why monthly payments represent a larger share of household income than they did in previous decades.

How federal and private loans make up the total

Federal student loans account for roughly 92 percent of the $1.7 trillion total. These are loans made directly by the U.S. Department of Education or by private lenders under the Federal Family Education Loan Program (FFELP), which ended in 2010. Federal loans come with standardized terms: fixed interest rates set by Congress, income-driven repayment options, and forgiveness programs after 20 or 25 years of payments.

Private student loans make up the remaining 8 percent, or about $130 to $150 billion. These come from banks, credit unions, and online lenders. Private loans have variable interest rates, fewer repayment options, and no forgiveness programs. Borrowers often take out private loans after exhausting federal loan limits, or to cover costs that federal loans do not cover.

The split matters because federal borrowers have more protection if they lose income or face hardship. Private borrowers have fewer options and typically cannot pause payments without entering default. This is why financial advisors generally recommend borrowing federal loans first and private loans only as a last resort.

Average debt per borrower and how it breaks down

The average federal student loan balance per borrower is around $37,000, but this number hides wide variation. Someone who borrowed only for a two-year degree might owe $15,000. Someone who went to graduate school might owe $100,000 or more. The median is lower than the average — roughly $20,000 per borrower — because a smaller number of people with very large debts pull the average up.

Debt varies most by degree type. Bachelor's degree holders who borrowed average around $28,000 to $30,000. Master's degree holders average $40,000 to $60,000. Doctoral and professional degree holders (lawyers, doctors, dentists) often owe $100,000 to $200,000 or more. Someone who attended a four-year university and borrowed every year will typically owe more than someone who attended community college for two years then transferred.

The year someone borrowed also matters. Interest rates on federal loans change each year based on the 10-year Treasury note. Someone who borrowed in 2010 paid around 4.5 percent interest. Someone who borrowed in 2022 paid around 6.5 to 8 percent. Over a 10-year repayment period, that difference in interest rate adds thousands of dollars to the total amount repaid.

Why student loan debt has grown so much

Student loan debt has grown for three main reasons: more people are going to college, college costs have risen faster than inflation, and borrowing limits have increased. In 1990, about 2 million people took out federal student loans in a single year. By 2010, that number had grown to 10 million. More borrowers means more total debt.

College tuition and fees have roughly tripled since 1990 when adjusted for inflation, while median household income has grown much more slowly. This gap means families have to borrow more to cover the same education. A bachelor's degree that cost $15,000 total in 1990 might cost $60,000 or more today at a public university, and $100,000 to $200,000 at a private university.

Federal loan limits have also increased over time. In 1990, undergraduate borrowers could take out a maximum of about $17,000 total (in today's dollars). Today, the limit is $31,000 for dependent undergraduates and $57,500 for independent undergraduates. Graduate students can borrow even more. Higher limits mean more total debt across the system.

How student loan debt compares to other types of debt

Student loan debt is now larger than credit card debt (roughly $1 trillion) and auto loan debt (roughly $1.5 trillion). Only mortgage debt is larger, at roughly $11 trillion. This ranking reflects both the number of borrowers and the size of individual loans — mortgages are larger per person, but student loans affect more people.

Student loans are also different from other debts in how they behave. Credit card debt and auto loans can be discharged in bankruptcy under certain circumstances. Student loan debt is much harder to discharge — borrowers must prove "undue hardship," a legal standard that courts interpret narrowly. This means student loan debt tends to stick with borrowers longer and is harder to escape.

Student loans also do not have a fixed payoff date the way a car loan does. Federal loans can be repaid over 10 years on a standard plan, or stretched to 20 or 25 years on an income-driven plan. Some borrowers on income-driven plans may have remaining balances forgiven after 20 or 25 years, though they may owe income tax on the forgiven amount. This flexibility is an advantage when income is low, but it also means some borrowers carry debt into their 50s and 60s.

Who holds the most student loan debt

Borrowers with graduate degrees hold the largest share of total student loan debt by degree type, even though fewer people pursue graduate education. This is because graduate loans are larger — a master's degree program costs more than a bachelor's degree program, and borrowers often have fewer scholarships available. Someone with a master's degree in business, engineering, or law might owe $80,000 to $150,000 alone.

By age, borrowers in their 30s and 40s hold the most total debt, because they borrowed during the 2000s and 2010s when costs were already high, and they have not yet paid off their loans. Younger borrowers (under 30) are still in the early years of repayment. Older borrowers (over 50) either paid off their loans decades ago when balances were smaller, or they are still paying and approaching the end of their repayment term.

By income level, borrowers with higher incomes tend to owe more in absolute dollars because they attended more expensive schools and pursued advanced degrees. However, borrowers with lower incomes often struggle more with repayment because the debt represents a larger share of their annual earnings. Someone earning $30,000 a year with $25,000 in student loans faces a much tighter situation than someone earning $100,000 a year with $80,000 in loans.

What happens to unpaid student loan debt

When a federal student loan payment is missed, the loan enters delinquency. After 90 days of missed payments, the loan is reported to credit bureaus and damages the borrower's credit score. After 270 days (about nine months) of missed payments, the loan goes into default. Once in default, the entire remaining balance becomes due when ready, and the government can begin collection actions.

The federal government has powerful collection tools for defaulted student loans. It can garnish wages (take money directly from paychecks), intercept tax refunds, and offset Social Security benefits for borrowers over 65. Private lenders have fewer tools — they can sue for payment and garnish wages through a court order, but they cannot intercept federal benefits the way the government can.

Borrowers who cannot afford their payments have options before default occurs. Federal loans can be placed in deferment or forbearance, which pauses payments temporarily. Income-driven repayment plans can lower monthly payments to as little as $0 if income is very low. These options keep the loan in good standing and prevent credit damage, though interest may still accrue depending on the plan chosen.

Frequently Asked Questions

Is the $1.7 trillion figure the amount people owe right now or the total amount borrowed?

It is the amount currently owed — the outstanding balance. This is different from the total amount ever borrowed, which would be much higher because it would include all the loans that have already been repaid over the past 30 years. The $1.7 trillion is what borrowers still owe as of today.

Why does student loan debt keep growing if people are paying it back?

New borrowers take out loans faster than old borrowers pay them off. Each year, roughly 10 million people take out federal student loans. Even though millions of people make payments, the new loans being issued exceed the amount being repaid, so the total grows. Additionally, interest accrues on unpaid balances, which adds to the total even when no new loans are issued.

How much of the $1.7 trillion is in default?

As of 2024, roughly 3 to 4 percent of federal student loans are in default, which represents about $50 to $70 billion. This is lower than it was during the COVID-19 pandemic because the federal government paused payments and interest from 2020 to 2023, which allowed many borrowers to catch up. Private loan default rates are typically higher, around 5 to 7 percent.

Does the total student loan debt include Parent PLUS loans?

Yes. Parent PLUS loans are federal loans taken out by parents to pay for their children's education, and they are included in the $1.7 trillion total. Parent PLUS loans account for roughly $100 to $120 billion of the total. Parents who borrowed these loans are responsible for repayment, not the students themselves, which is why some parents carry student loan debt into retirement.

How does American student loan debt compare to other countries?

The United States has higher total student loan debt than any other country, partly because college is more expensive here and partly because more Americans borrow to pay for it. However, other countries like Australia and the United Kingdom also have significant student loan programs. The difference is that many countries cap tuition costs or offer free or low-cost higher education, which limits how much students need to borrow.