Student Loan Debt in the United States

The number and amount of student loans in the United States are increasing with more than $1.71 trillion currently owed for approximately 44.7 million borrowers. According to the most current data, debts were halted due to the pandemic. Before this, roughly 11 percent of all student debts were in default or delinquent a minimum of 90 days with an average payment of $300 per month.

Student Debt Statistics

• Direct Loans: 35.9 billion borrowers, $1.32 trillion
• Perkins Loans: 1.7 billion borrowers, $5.2 billion
• FFEL Loans: 11.0 billion borrowers, $245.9 billion

This is a total of 42.9 million borrowers with a debt of $1.57 trillion. The statistics according to loan type are:

• Stafford
  • Unsubsidized: 29.2 million borrowers, $539.8 billion
  • Subsidized: 29.6 million borrowers, $285.7 billion
  • Combined: 33.4 million borrowers, $825.5 billion
• Perkins: 1.7 million borrowers, $5.2 billion
• Parent PLUS: 3.6 million borrowers, $100.8 billion
• Grad PLUS: 1.5 million borrowers, $82.8 billion
• Consolidation: 11.5 million borrowers, $552.1 billion

At the time this article was written, there were $14.7 billion loans in repayment, $114.4 in deferment, $887.4 billion in forbearance and $43.7 billion loans with a grace period.

Debts and Degrees

More than 50 percent of all American students are unable to complete college without going into debt. The average student loan is a shocking $37,500. During the last 30 years, the cost of attending a public institution for four years has almost tripled. At private schools, the cost is slightly over double. The majority of Americans do not have enough money in investments and savings to pay for college.

The bottom line is most families and students must take out loans to pay for higher education. The cost of the average loan continues to increase as time passes.

Debt Cancellation and the United States Economy

The size of student loans is weighing on the economy of the United States and the millions of individuals currently in debt. The government backs approximately 92 percent of student loan debt. Although no action has been taken there have been suggestions from several Democrats to cancel all or some student debts. Certain politicians are still taking steps to help students with loan forgiveness programs.

Average Loan Balances

Approximately 43 percent of everyone living in the United States attending college could only afford the costs by taking on some type of debt. For the students of today, these numbers have substantially increased. Approximately 54 percent of these students borrowed money to pay for the cost of their education. The most common option for borrowers is student loans.

Among all educational debt, 93 percent includes student loans. Another 31 percent of these individuals financed their education through other options including 24 percent using credit cards, seven percent a home equity line of credit and 12 percent other types of credit. The majority of people responsible for educational debts are young adults. Most borrowers are between 25 and 34 years of age.

According to statistics from the U.S. Department of Education, as of the last quarter of 2020 federal student loans totaled approximately $500 billion. Even larger debts are held by individuals between 35 and 49 years of age. The total of these loans is $602 billion. An additional $262 billion in student loans is owed by individuals between 50 and 6 years of age.