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At the end of 2022, the Federal Reserve reported that roughly 43.5 million Americans have student loan debt, which totals over $1.7 trillion. Each borrower owes an average of $37,787.
If you owe tens of thousands of dollars in student loan debt, you’re not alone. According to the Federal Reserve’s Consumer Credit report, 43.5 million Americans have some form of federal or private student loan debt. That’s 13 percent of the population. Not only can you not declare bankruptcy on many forms of student loan debt, but it can also harm your credit.
Here, we’re going to help you better understand the student loan debt dilemma that millions of Americans are facing. We’ll cover both federal and private student loan statistics, which states have the most student loan debt as well as delinquency rates. This will help you see where you stand in comparison to others in a similar situation.
Table of contents:
Average student loan debt How many Americans have student loan debt? Student loan debt by state Total federal student loan debt Total private student loan debt Average student loan debt by age group Student loan repayment status Student loan default and delinquency rate sStudent loan debt forgiveness Student loan debt FAQ
Average student loan debt The Education Data initiative is a primary source for tracking data on student loan debt and other educational statistics. In a January 2023 report , their analysis showed that the average debt per borrower was over $37,000 for federal student loans and nearly $55,000 for private loans.
Student loan debt has reached new highs in recent years and has been rising since 2007. Less than 20 years ago, the average student loan debt per borrower was just $18,200. This means that by 2022, we saw a 106 percent increase.
Here’s some more interesting data from their report:
Those with a medical degree have an average student loan debt of over $300,000
The least amount of student loan debt is those with a Master of Education, which is $67,500
Stafford loan borrowers owe $25,249 on average
10 percent of borrowers owe more than $100,000 and 45 percent owe less than $20,000
How many Americans have student loan debt? Over 43 million Americans have student loan debt. The following table from the U.S. Department of Education shows how many Americans have debt by federal loan type.
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Year (Q4)
Direct loans (in millions)
Federal Family Education Loans (FFEL) (in millions)
Perkins loans (in millions)
Total (in millions)
2018
34.2
13.5
2.3
42.9
2019
35.1
12.1
2.0
42.9
2020
35.9
11
1.7
42.9
2021
37
10.2
1.5
43.4
2022
37.8
9.2
1.3
43.5
As you can see, more people are accumulating different types of federal student loans, with a one-and-a-half percent increase in recipients between 2018 and 2022.
Student loan debt by state The Federal Reserve Bank of New York tracks student loan debt by state. Below, we’ve provided a chart with each state listed in alphabetical order.
The state with the lowest average student loan debt per borrower as of the fourth quarter in 2021 is South Dakota, where borrowers owe an average of $28,218. The District of Columbia has the highest average owed per borrower at $53,769, which is nearly $16,000 higher than the national average.
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State
Average balance
Alabama
$37,730
Alaska
$30,427
Arizona
$36,682
Arkansas
$31,851
California
$37,783
Colorado
$37,235
Connecticut
$36,391
Delaware
$39,238
District of Columbia
$53,769
Florida
$38,653
Georgia
$41,826
Hawaii
$34,608
Idaho
$34,196
Illinois
$37,869
Indiana
$32,045
Iowa
$29,845
Kansas
$33,954
Kentucky
$33,155
Louisiana
$34,839
Maine
$33,584
Maryland
$42,543
Massachusetts
$35,400
Michigan
$36,221
Minnesota
$33,161
Mississippi
$36,366
Missouri
$35,095
Montana
$32,459
Nebraska
$31,551
Nevada
$35,688
New Hampshire
$33,094
New Jersey
$37,003
New Mexico
$32,944
New York
$38,668
North Carolina
$37,511
North Dakota
$30,542
Ohio
$35,806
Oklahoma
$32,102
Oregon
$38,248
Pennsylvania
$35,349
Rhode Island
$33,838
South Carolina
$36,698
South Dakota
$28,218
Tennessee
$36,155
Texas
$32,998
Utah
$33,474
Vermont
$34,595
Virginia
$39,001
Washington
$34,846
West Virginia
$32,214
Wisconsin
$31,482
Wyoming
$30,581
States with the most student loan borrowers The Federal Reserve Bank of New York also tracks how many borrowers there are per state. This gives us a good sense of how many individuals are seeking college degrees, but we should also keep in mind that the cost of living varies in different states as well as how much there is for state funding.
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State
Total borrowers
California
4,021,200
Texas
3,759,300
Florida
2,646,400
New York
2,579,600
Pennsylvania
2,032,400
Ohio
1,810,900
Illinois
1,713,900
Georgia
1,641,600
Michigan
1,430,900
North Carolina
1,340,500
New Jersey
1,339,800
Virginia
1,143,200
Massachusetts
1,046,800
Indiana
924,000
Minnesota
902,500
Arizona
872,600
Tennessee
872,000
Maryland
864,700
Missouri
829,100
Washington
816,900
Colorado
804,300
Wisconsin
785,600
South Carolina
745,500
Louisiana
644,600
Alabama
615,800
Kentucky
588,800
Oregon
556,000
Connecticut
542,800
Oklahoma
480,800
Iowa
465,500
Mississippi
414,300
Kansas
395,200
Arkansas
374,900
Nevada
351,300
Utah
325,100
Nebraska
261,000
Idaho
219,400
New Hampshire
219,000
West Virginia
217,200
New Mexico
215,500
Maine
203,200
Rhode Island
153,200
Delaware
137,300
South Dakota
135,600
Montana
132,900
District of Columbia
125,000
Hawaii
123,600
North Dakota
114,000
Vermont
96,300
Alaska
70,600
Wyoming
57,600
States with the highest delinquency rates per borrower As stated by the U.S. Department of Education , a student loan payment is considered delinquent the first day after missing a payment. If the payment goes unpaid for at least 270 days, the loan then goes into default.
The following are some consequences of going into default:
The entirety of the loan and the interest is due immediately
You lose the ability to obtain additional federal student aid
It will harm your credit score
The state with the highest borrower delinquency rate, `per the Federal Reserve of New York, is Maryland at a rate of 11 percent. This is followed by the state of Washington at 10.7 percent and Utah at 10 percent.
Total federal student loan debt Included in the U.S. Department of Education’s report is the total amount of outstanding federal and private student loans. Outstanding FFEL loans have dropped over 50 percent since the fourth quarter of 2013, and outstanding Perkins loans have fallen the same amount.
Now, you may be wondering, “Then how is there more outstanding student loan debt than in previous years?” This is due to the rise in outstanding direct loans, which have risen over 133 percent since 2013.
Here’s a look at the past five years of outstanding federal student loan debt:
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Year (Q4)
Direct loans (in millions)
Federal Family Education Loans (FFEL) (in millions)
Perkins loans (in millions)
Total (in millions)
2018
$1,150.3
$281.8
$7.1
$1,439.2
2019
$1,242.6
$261.6
$6.1
$1,510.3
2020
$1,315.2
$245.9
$5.2
$1,566.3
2021
$1,375.9
$230.4
$4.4
$1,610.7
2022
$1,422.8
$207.8
$3.9
$1,634.5
Total private student loan debt When taking out a student loan, you can receive federal student loans or private student loans. Private student loans aren’t provided by the federal government, and they often come with much higher interest rates. While federal student loans sometimes have forgiveness programs that can help eliminate some of your debt, private loans don’t have the same benefit.
Less than two percent of private student loan borrowers default on their student loans (MeasureOne )
The average interest rate on private loans is between four and 15 percent (Education Data Initiative )
Refinancing a private student loan can range between 2.25 to 12 percent (Education Data Initiative )
53 percent of private loan borrowers did not borrow the maximum amount of Stafford loans (TICAS )
11 percent of these borrowers didn’t apply for federal financial aid (TICAS )
Average student loan debt by age group The debt among Americans is divided by age group in the U.S. Department of Education report, and it shows that people ages 35 to 49 owe the most in federal student loans. While this age group owes a total of $634 billion, those under 24 years of age only owe $104 billion, followed by people 62 and older at $107 billion.
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Age group
Total outstanding loan balances (in billions)
Under 24
$104
25 to 34
$497
35 to 49
$634
50 to 61
$293
62 and older
$107
Student loan repayment status While many Americans are paying their student loans on a monthly basis, for a variety of reasons, some people may need to apply for a deferment or forbearance. If you’re facing financial hardships, you can apply for these services to pause your loan payments . It’s also helpful to know that you may still accrue interest while in forbearance or deferment.
The following table shows the total number of Americans by loan status as per the U.S. Department of Education during the fourth quarter in 2022:
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Loan status
Recipients (in millions)
Currently in school
6.3
In grace period
1.3
Repayment
0.4
Deferment
3.0
Forbearance
25.6
Cumulative in default
4.8
Other
0.1
Student loan default and delinquency rates When graduating from college, it can take some time for people to begin making enough money to pay back their student loans. But remember, missed payments turn delinquent the day after missing the first payment and then go into default after 270 days.
Here are some notable statistics from the Education Data Initiative :
The majority of borrowers have at least one late payment in the first five years of repayment
Over 40 percent of borrows in default status owe between $20,000 and $40,000
Almost 11 percent of borrowers default within their first year of repayment
Less than 20 percent of borrowers are delinquent at least five times
Graduates with Arts and Humanities majors have the highest default rate at 26 percent
Student loan debt forgiveness The most common form of federal student loan forgiveness is the Public Student Loan Forgiveness Program (PSLF) . This is a student loan forgiveness program for a variety of different service jobs. According to the PSLF website, there are no specific jobs, and all a company needs to do is qualify for PSLF. Although there are no specific jobs listed, here are some of the typical careers that qualify, as reported by Kristen Kuchar at SavingforCollege.com :
Law enforcement
Public health
Education
Social work
Emergency management
Public safety
Government jobs
PSLF releases a monthly report with some interesting information. The following is data from their December 2022 report :
There were 1.8 million forms processed for people qualifying for PSLF
Of the more than 1.9 million forms processed, 88,202 did not qualify for PSLF
The largest portion of borrowers qualified for income-driven repayment, which allows for lower payments based on current income
34,000 people who applied have employers that do not qualify for PSLF
The primary sector qualifying for PSLF is government employees, who accounted for 61 percent of the processed forms
Student loan debt FAQ We’ve covered a lot of data about student loan debt statistics in America, but you may have some lingering questions. Below is a list of some frequently asked questions, along with their answers.
What is the average student loan debt in 2023? The average American graduate owes $37,787 in student loans.
Who suffers the most from student loan debt According to the Education Data Initiative , Black and African American graduates owe $25,000 more than white graduates on average. About 48 percent of these former students also owe six percent more than they borrowed.
Is student loan debt increasing or decreasing? The credit bureau Experian® shows the average student loan balance increased 91 percent between 2009 and 2022.
Who owns the most student loan debt? As of September 2022, the U.S. Department of Education reported that people ages 35 to 49 owe the most student loan debt at a total of $634 billion.
Don’t let student loan debt affect your credit score If you’re having trouble paying your student loan debt, you’re not alone. With 4.8 million Americans in default and 28.6 million in deferment or forbearance status, it’s clear to see that many people are in the same situation. Unfortunately, not paying your student loan debt can harm your credit score, which can make your financial life difficult and cause additional stress.
Fortunately, Credit.com is here to help. We offer different tools that can help you work to repair and improve your credit. We’re also here to help you learn how to manage your debt so you can make your payments on time and avoid any dings to your credit in the future. If you’re curious about your current credit status, sign up for your free credit report card today.
The post U.S. Student loan debt statistics you should know in 2023 appeared first on Credit.com .
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