Staggering Student Debt Statistics for 2023
A prominent portion of national debt, second to mortgages only, student debt has been a hot topic of interest for experts in a variety of areas for years now. With the vast majority of borrowers consistently struggling to repay them, and the overall economic strain that came along with the COVID-19 pandemic, student loans are a pressing financial burden for many Americans. These student debt statistics reveal details on just how bad the current state of education debt really is, along with borrower demographics, state-level, and data on repayment status.
Student Debt Statistics – The Highlights
As of Q2 2022, the total student debt in the US exceeds $1.748 trillion.
44% of Americans who went to college have acquired at least some debt for their education.
26% of those with outstanding student debt in 2021 owed under $10,000.
52% of Americans had completely paid off their student debt in 2021.
At $146.1 billion, student debt is the highest in California.
At $1.7 billion, student debt is the lowest in Wyoming.
As of June 2022, the average student loan debt in the US stands at $37,667.
18% of Hispanic US adults were behind on their student debt payments in 2021.
General Student Loan Debt Statistics
As of Q2 2022, the total student debt in the US exceeds $1.748 trillion.
The above figure stood at $1.747 trillion in Q1 2022, while a year before, in Q1 2021, the total outstanding student debt in the US was $1.718 trillion. Historical data points to a total student debt of nearly $841 billion in Q1 2006, exceeding the $1-trillion mark for the first time just six years later, in Q2 2012.
(The Federal Reserve)
The average student loan debt at graduation stands at $25,921.
The above figure, referring to public four-year universities, adds up to $6,480 per year. Considering that 42% of graduates complete their higher education without any debt, the average student upon graduation stands at $16,300.
(APLU)
44% of Americans who went to college have acquired at least some debt for their education.
The above figure translates to 30% of American adults overall and consists of 20% of college attendees who still owed money in 2021 and 22% of those who had repaid their debts in or prior to the same year.
(The Federal Reserve)
As of 2021, the percentage of student loans in default stands at 35%.
Among borrowers who have defaulted on their student loans, 66% have done so more than once. One of the most common reasons for defaulting on student loans include having other, higher-priority debt, as agreed by 72% of borrowers. There’s also feeling overwhelmed and not being able to afford payments, as agreed by 71% and 68% of borrowers, respectively.
(Pew Trusts)
26% of those with outstanding student loan debt in 2021 owed under $10,000.
US adults owing between $10,000 and $19,999 were the second-largest group at 19%, followed by those owing between $20,000 and $29,999 at 15%. Those owing $50,000-74,999 and $100,000 or above each accounted for 10% of all American adults with outstanding student debt in 2021. Those owing between $30,000 and $39,000 followed at 7%, along with those with $40,000-$49,999 and $75,000-$99,999 in debt at 6% and 5%, respectively.
(The Federal Reserve)
12% of US adults who had outstanding debt for their own education in 2021 were behind on their payments.
As per statistics on student loan debt, the above figure marks a five percentage point decrease since the one recorded in 2019, attributed to the Coronavirus Aid, Relief, and Economic Security Act.
When observing data by level of education, 23% of those with less than an associate degree reported being behind on their student debt payments in 2021. This compares to 18% of those with an associate degree, 6% of those with a bachelor’s degree, and 5% of those with a graduate degree.
Parents’ education level also seems to play a role in whether borrowers are behind on payments or not. US student debt statistics reveal that 8% of those who had at least one parent with a bachelor’s degree were behind on student debt payments for their own education in 2021, which compares to 15% of those in families where neither parent has completed a bachelor’s degree.
(The Federal Reserve)
96% of those with outstanding student debt for their own education in 2021 had taken out a student loan.
Student loans are not the only source of student debt among Americans. Another 19% of those with outstanding college student debt for their own education in 2021 borrowed with credit cards, 4% did so with home equity loans, and 11% relied on other types of loans to pay for their education.
(The Federal Reserve)
88% of those with outstanding student debt for their children’s or grandchildren’s education in 2021 had taken out a student loan.
Student debt in the US is not always associated with the person obtaining the degree. 4% of American adults were in debt for their partners’ or spouses’ education. According to college student debt statistics, 12% of those with outstanding student debt for their children’s or grandchildren’s education in 2021 borrowed with credit cards, 9% did so with home equity loans, and 11% relied on other types of loans to pay for their children’s or grandchildren’s education.
(The Federal Reserve)
52% of Americans had completely paid off their student debt in 2021.
42% had outstanding debt in 2021 and were on time with their payments, while 6% were behind.
(The Federal Reserve)
As of mid-August 2022, a total of 211,370 borrowers qualified to have their student debt forgiven under the PSLF limited waiver.
As per student debt forgiveness data, the above figure translates into $12.8 billion of debt. California is the state with the most (17,200) borrowers qualifying for their student debt to be forgiven, accounting for a total of $1.1 billion of debt. New York follows closely with 17,100 borrowers and $998,600 in debt. Florida is next with 11,600 borrowers and $820,100 in debt, closely followed by Texas with 11,660 borrowers and $703,000 in debt. The list of the top five countries with the most borrowers qualifying for student loan forgiveness is rounded by Pennsylvania, with 10,200 borrowers and $618,200 in debt.
(Federal Student Aid)
Student Debt Statistics by State
At $146.1 billion, student debt is the highest in California.
As of the end of June 2022, on the list of US states with the highest student debt, Texas ranks second with $122.5 billion, followed by Florida with $102.8 billion and New York with $93.6 billion. The number of borrowers in these states stands at 3.9 million, 3.6 million, 2.6 million, and 2.4 million, respectively.
(Federal Student Aid)
At $1.7 billion, student debt is the lowest in Wyoming.
Based on American student loan debt statistics obtained at the end of June 2022, on the list of US states with the lowest student debt, Alaska ranks second with $2.3 billion, followed by North Dakota with $2.6 billion, Vermont with $2.9 billion, and South Dakota with $3.7 billion. The number of borrowers in these states stands at around 54,200, 67,100, 86,700, 76,600, and 115,400, respectively.
(Federal Student Aid)
As of June 2022, the average student loan debt in the US stands at $37,667.
According to the average student loan debt statistics, Maryland is the US state with the highest average student loan debt at $43,619. Georgia ranks second at $42,200, followed by Virginia, South Carolina, and Florida, with an average student loan debt at $39,892, $38,915, and $38,889, respectively.
(Federal Student Aid)
As of Q4 2021, student loan borrower delinquency rate is the highest in West Virginia (11%).
Mississippi ranks second with a borrower delinquency rate of 10.7%, followed by Kentucky with 10%. On the other hand of the spectrum, the states with the lowest student loan borrower delinquency rates include Nebraska and New Hampshire with 4.8% each, and New York and Massachusetts with 4.9% each.
(New York Fed)
Student Loan Debt Statistics on Borrowers
As of 2021, the 30-39 age group has the highest student loan balance of $515.59 billion.
With 12 million, however, this isn’t the age demographic with the highest number of borrowers. With $355.5 billion, those under 30 rank second based on total outstanding student loan balance, but also account for the largest group of borrowers with 14.9 million of them. Those aged between 40 and 49 account for 7.6 million borrowers owing $344.8 billion, followed by the 50-59 age group with its 5.2 million borrowers owing $231.9 billion. Finally, those aged 60 or older owe $126.6 billion in national student loan debt and account for 3.5 million borrowers.
(New York Fed)
Among adults in the US with a graduate degree, 65% of those aged between 30 and 44 have acquired student debt.
The same applies to 59% of those between 45 and 59 years of age, followed by 58% of those aged between 18 and 29 and 39% of those 60 or older.
Among Americans who have a bachelor’s degree, 60% of those aged between 30 and 44 have acquired student debt. The same applies to 58% of those aged between 18 and 29, followed by 47% of those between 45 and 59 years of age and 32% of those 60 or older.
According to current student loan debt statistics, among US adults with an associate degree, 46% of those aged between 30 and 44 have acquired student debt. The same applies to 39% of those aged between 18 and 29, followed by 38% of those between 45 and 59 years of age and 20% of those 60 or older.
Among American adults who have completed some college or a technical degree, 42% of those aged between 30 and 44 have acquired student debt. The same applies to 37% of those aged between 18 and 29, followed by 27% of those between 45 and 59 years of age and 13% of those 60 or older.
(The Federal Reserve)
18% of Hispanic US adults were behind on their student debt payments in 2021.
Student loan debt statistics by race reveal that the corresponding portions among Black and White Americans stood at 17% and 9%, respectively.
(The Federal Reserve)
The median credit score of student loan borrowers in 2021 was 681.
Among delinquent or defaulted student loan borrowers, the median credit score was 546. Student data by credit score further reveals that those with credit scores of or under 620 had a total student debt balance of $409 billion, followed by those in the 660-719 credit score group with $368.7 billion. Interestingly, those with a credit score of or over 760 had a total student loan debt of $365 billion. Among the ones with the lowest student loan balance totals were those in the 720-759 and 620-659 credit score groups, with $253 billion and $185.7 billion, respectively.
(New York Fed)
59% of American adults who attended private, for-profit institutions had student debt in or prior to 2021.
This figure compares to 57% of those who attended private, not-for-profit institutions and 40% of those who attended public educational institutions.
(The Federal Reserve)
23% of Americans who attended public, for-profit institutions were behind on their student debt payments in 2021.
As per government statistics on student loan debt, the corresponding portions among those who attended public and private, not-for-profit institutions stood at 11% and 7%, respectively.
(The Federal Reserve)
Student Debt FAQ
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The Summary
Consistently increasing ever since it passed the $1-trillion mark in mid-2012, student debt remains a large burden to Americans and their already-strained financial wellbeing. While the Public Service Loan Forgiveness Program has waived a certain amount of these loans, millions still struggle with repaying their education. As these student debt statistics further reveal, many even reach the point of defaulting on their loans multiple times.
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