The total amount of student loan debt in the United States
As of 2024, Americans owe roughly $1.7 trillion in student loan debt across all borrowers combined. This figure includes federal loans made through the Department of Education, private loans from banks and other lenders, and Parent PLUS loans taken out by parents on behalf of their children. The exact total shifts month to month as borrowers make payments, take out new loans, and loans go into default.
This $1.7 trillion sits behind only mortgage debt in size among American household debts. It exceeds credit card debt, auto loan debt, and medical debt. The number has grown steadily over the past two decades as college costs have risen and more students have borrowed to pay tuition.
The total includes both current borrowers and people who have already finished repaying. Some of that debt is in active repayment, some is in deferment or forbearance (temporary pause), some is in default, and some is held by people who are no longer required to pay because they have reached income-driven repayment forgiveness thresholds or their loans were discharged.
Key Takeaways
- Total student loan debt in the United States is approximately $1.7 trillion, making it the second-largest category of household debt after mortgages.
- Federal loans account for the majority of this debt, with private student loans making up a smaller but still significant portion.
- The average borrower who took out federal loans carries between $28,000 and $37,000 in debt, though this varies widely by degree type and school.
- Debt totals have grown because college costs have risen faster than inflation, and more students have borrowed to cover tuition and living expenses.
- The total debt figure includes loans in repayment, deferment, forbearance, default, and forgiveness programs, so not all of it is actively being paid down each month.
How federal and private loans split the total
Federal student loans make up the majority of the $1.7 trillion total — roughly 85 to 90 percent. These are loans issued by the Department of Education through programs like the Direct Loan program, which includes Subsidized Stafford Loans, Unsubsidized Stafford Loans, PLUS Loans, and Consolidation Loans. Federal loans carry fixed interest rates set by Congress, offer income-driven repayment plans, and include forgiveness programs for certain borrowers.
Private student loans account for the remaining 10 to 15 percent. These come from banks, credit unions, and online lenders. Private loans typically carry variable interest rates, do not offer income-driven repayment, and do not may have access to for federal forgiveness programs. Because private loans are less regulated and more profitable for lenders, they tend to carry higher interest rates than federal loans.
The split between federal and private has remained relatively stable over the past decade, though the total amount of both has grown. Most new borrowers take federal loans first because they are cheaper and offer more protections, and only turn to private loans when federal borrowing limits are reached.
Average debt per borrower and how it varies
The average federal student loan borrower who graduated with debt carries between $28,000 and $37,000. This average masks enormous variation. A borrower who attended a public four-year university and worked part-time may owe $15,000. A borrower who attended a private university and took out loans for all four years plus graduate school may owe $100,000 or more. A borrower who attended community college for two years may owe $8,000.
Debt varies most by degree type. Bachelor's degree holders typically carry more debt than associate degree holders because the degree takes longer and costs more. Graduate degree holders — especially those with law degrees, medical degrees, or MBAs — often carry the highest debt loads, sometimes exceeding $150,000. Borrowers who attended for-profit colleges tend to carry higher debt relative to their earnings after graduation.
Debt also varies by when someone borrowed. Borrowers who graduated in 2008 during the financial crisis often borrowed more because they could not find work and extended their education. Borrowers who graduated in 2020 during the pandemic faced similar pressures. Borrowers who attended college in the 1990s typically owe less in absolute dollars because tuition was lower, though they may have taken longer to pay it off.
Why the total has grown so much
Student loan debt has grown from roughly $300 billion in 2003 to $1.7 trillion today for three main reasons: college costs have risen faster than inflation, more students have attended college, and students have borrowed a larger share of college costs rather than paying out of pocket or receiving grants.
The cost of attending a four-year public university has roughly tripled since 2000 when adjusted for inflation. Private university costs have risen similarly. At the same time, state funding for public universities has declined, shifting more of the cost burden to students. Federal grant aid (Pell Grants) has not kept pace with rising costs, so students have filled the gap with loans.
College enrollment also expanded. In 2000, about 26 percent of Americans age 25 and older held a bachelor's degree. By 2023, that figure had risen to about 37 percent. More people pursuing degrees means more people borrowing, even if the average amount per person stayed flat — which it has not. The average amount borrowed per student has also increased.
How much debt is in default or not being repaid
Not all $1.7 trillion in student loan debt is being actively repaid. Some portion is in default, meaning the borrower has stopped making payments and is no longer in contact with their loan servicer. Some is in deferment or forbearance, which are temporary pauses in payment. Some is held by borrowers in income-driven repayment plans who are making payments but may eventually have their remaining balance forgiven.
The federal student loan default rate — the share of borrowers who default within three years of entering repayment — has fluctuated between 10 and 12 percent in recent years. This means roughly one in nine borrowers eventually defaults. Default rates are highest among borrowers who attended for-profit colleges and lowest among borrowers who completed a degree.
During the COVID-19 pandemic, the federal government paused all federal student loan payments and froze interest accrual from March 2020 through December 2023. This pause reduced the amount of debt being actively repaid during that period. Payments resumed in October 2023, though the government has offered various repayment plan changes and forgiveness programs since then.
Regional and demographic differences in debt
Student loan debt is not evenly distributed across the country or across demographic groups. Borrowers in states with high college costs and high college attendance rates — such as Massachusetts, Connecticut, and New York — tend to carry more debt on average. Borrowers in states with lower college costs or lower college attendance rates carry less.
Black borrowers carry higher average debt than white borrowers, even when controlling for degree type. This gap exists because Black borrowers are more likely to attend private or for-profit colleges, which cost more, and are less likely to receive family financial support. Black borrowers also take longer to pay off their debt after graduation, meaning they accumulate more interest.
Women hold roughly 60 percent of all student loan debt, though this reflects both higher college attendance rates among women and the fact that women earn less on average after graduation, making repayment slower. Graduate degree holders carry more debt than undergraduate degree holders, but also earn more, so their debt-to-income ratio may be lower.
What happens to debt when borrowers die or become disabled
Federal student loans are discharged (forgiven) if the borrower dies or becomes permanently and totally disabled. The loan servicer must be notified, and the borrower or their family must provide documentation of death or disability. Once discharged, the borrower or their estate is no longer responsible for the debt.
Private student loans do not have automatic discharge for death or disability. Some private lenders offer optional death or disability discharge as part of their loan terms, but it is not required. Borrowers with private loans should check their promissory note to see whether this protection is included.
Loans that are discharged due to death or disability are removed from the total debt figure. However, because the total is measured at a point in time, new loans are constantly being added as students borrow, so the overall total continues to grow even as some individual loans are discharged.
Frequently Asked Questions
Is the $1.7 trillion number accurate right now?
The $1.7 trillion figure is current as of early 2024, but the exact total changes daily as borrowers make payments and new loans are issued. The Federal Reserve, the Department of Education, and private research firms all track this number, and their figures may differ slightly depending on what they include and when they measure. For the most current figure, check the Federal Reserve's Household Debt and Credit Report or the Department of Education's Federal Student Aid data portal.
How much of the total debt is owed by people who never finished college?
Borrowers who did not complete a degree account for a significant share of total debt — estimates range from 30 to 40 percent. These borrowers often carry debt with no degree to show for it, making repayment harder. They are also more likely to default than borrowers who completed a degree, because they earn less on average.
Could the government forgive all student loan debt?
The government has the legal authority to forgive federal student loan debt through executive action or legislation, but doing so would cost hundreds of billions of dollars and would not reduce the underlying cost of college. Forgiveness would benefit current borrowers but would not prevent future students from borrowing. Various forgiveness programs exist for specific groups, such as public service workers and borrowers with permanent disabilities.
Why do some people say student loan debt is a crisis?
Critics point to the size of the debt, the burden it places on young adults, and the fact that it delays major life decisions like buying a home or starting a family. Supporters of the current system argue that education is an investment that pays off over time through higher earnings. The debate centers on whether the current level of debt is sustainable and whether borrowers are getting value for what they pay.
How does U.S. student loan debt compare to other countries?
The United States has higher average student loan debt per borrower than most other developed countries, partly because American colleges cost more and partly because the U.S. relies more heavily on loans rather than grants or free tuition. Countries like Germany, Norway, and Finland offer free or low-cost college, so borrowers there carry little to no debt. Other countries like Australia use income-contingent loan systems where repayment is tied to earnings.