Catalina Espinosa
Research expert covering society, economy, and politics for Europe and the EU
Student loan debt in the United States - statistics and facts
Since the Supreme Court struck down federal student loan forgiveness, student debt remains the fastest growing household debt in the United States. As of Q4 2024, the value of outstanding student loans surpassed 1.77 trillion U.S. dollars, the majority of which was made up by federal loans. This rapid rise is largely attributed to high college costs at a time of stagnant wage growth, increasing living expenses, and a lack of well-paying jobs not requiring a degree. Government aid to help pay for college has not kept up with the cost either; the Federal Pell Grant, reserved for low-income families, only covered around 31 percent of expenses in public institutions in 2024. More than 45 million Americans had a student debt balance in that year, with the average borrower owing over 38,000 U.S. dollars.
Young and middle-aged adults hold the majority of student loan debt in the United States, with borrowers aged 35 to 49 owing the most as of 2024. Due to accruing interest, however, some Americans stay saddled with student debt even up to retirement. Borrowers over 50 years old often carry the greatest balances, averaging almost 50,000 U.S. dollars per borrower. Attending a private university also likely leads to a larger balance compared to cheaper public colleges. Similarly, obtaining a graduate or professional degree can incur more debt, although this may be offset by subsequent salary increases.
Studies show that smaller debts held by younger Americans tend to be the most difficult to pay off, as they face significant financial complications from loan repayments; in 2022, around a quarter of Gen Z were unable to save for retirement or emergencies and had to delay homeownership due to student debt. Some struggle more than others; women and people of color typically take out more loans – and have higher balances – than white men. In 2022, almost half of Black women who attended college had student debt, more than any other demographic group.
In contrast to the previous administration’s aim of providing relief through repayment options, recently reelected President Trump instead dismantled such protections; since assuming office, the Trump administration halted income-driven repayment plans and removed online application forms for debt relief programs facilitating loan forgiveness for many borrowers. Most Republicans maintain that student loans should not be forgiven, reasoning that taxpayers without any debt would be unfairly forced to bear the cost while the real problem of overpriced colleges remains unresolved.
Although most Americans agree existing debt should be addressed, debates remain over the appropriate level of federal involvement. As of 2022, 33 percent of Americans without student loans supported forgiving 10,000 U.S. dollars for lower-income individuals, even if it would raise taxes. However, support fell significantly if colleges were to increase costs or more jobs required degrees, suggesting that schools and employers must also be held accountable. As surging student debt restricts younger generations and raises doubt on the value of higher education, finding a way out of this debt crisis could be crucial for the continuation of an educated and successful society.
Borrowers and balances
Young and middle-aged adults hold the majority of student loan debt in the United States, with borrowers aged 35 to 49 owing the most as of 2024. Due to accruing interest, however, some Americans stay saddled with student debt even up to retirement. Borrowers over 50 years old often carry the greatest balances, averaging almost 50,000 U.S. dollars per borrower. Attending a private university also likely leads to a larger balance compared to cheaper public colleges. Similarly, obtaining a graduate or professional degree can incur more debt, although this may be offset by subsequent salary increases.
Studies show that smaller debts held by younger Americans tend to be the most difficult to pay off, as they face significant financial complications from loan repayments; in 2022, around a quarter of Gen Z were unable to save for retirement or emergencies and had to delay homeownership due to student debt. Some struggle more than others; women and people of color typically take out more loans – and have higher balances – than white men. In 2022, almost half of Black women who attended college had student debt, more than any other demographic group.
A legal battle to federal loan forgiveness
In contrast to the previous administration’s aim of providing relief through repayment options, recently reelected President Trump instead dismantled such protections; since assuming office, the Trump administration halted income-driven repayment plans and removed online application forms for debt relief programs facilitating loan forgiveness for many borrowers. Most Republicans maintain that student loans should not be forgiven, reasoning that taxpayers without any debt would be unfairly forced to bear the cost while the real problem of overpriced colleges remains unresolved.
Although most Americans agree existing debt should be addressed, debates remain over the appropriate level of federal involvement. As of 2022, 33 percent of Americans without student loans supported forgiving 10,000 U.S. dollars for lower-income individuals, even if it would raise taxes. However, support fell significantly if colleges were to increase costs or more jobs required degrees, suggesting that schools and employers must also be held accountable. As surging student debt restricts younger generations and raises doubt on the value of higher education, finding a way out of this debt crisis could be crucial for the continuation of an educated and successful society.
