The State of Student Loan Debt in America: A Comprehensive Analysis Debt

Student loan debt in America has reached unprecedented levels, with the total amount surpassing $1.774 trillion as of 2023.

On average, borrowers carry a balance of up to $40,505, representing a significant financial burden.

Although the growth rate of student loan debt has slowed down in recent years, it remains a pressing issue for many individuals.

Factors such as the type of loan, institution, demographics, income level, and repayment status all contribute to the complex landscape of student loan debt.

Furthermore, disparities exist across various categories, including institution type, degree level, field of study, enrollment status, program completion, and ownership. Additionally, gender and racial disparities are apparent, with female and Black borrowers facing higher debt burdens.

The topic of student loan forgiveness has gained traction, with varying levels of support and opposition among Americans.

As discussions surrounding this issue continue, it is crucial to consider the multitude of factors involved in order to develop fair and effective solutions.

Key Takeaways

• The total amount of student loan debt outstanding is now over $1.7 trillion.
• The cost of college has increased much faster than inflation in recent years.
• Many students are taking out loans for longer periods of time.
• Student loan debt can be a significant financial burden for borrowers.
• The debate over student loan forgiveness is a complex one.

As of 2023, the total student loan debt is a staggering $1.774 trillion, with an average balance of up to $40,505 per borrower. This debt has been growing at a rate of 1.53% in 2023 Q2, a slight decrease from the 1.66% growth rate in 2022. However, this growth rate has been slowing down since 2014, when it was at a high of 7.60%.

Federal vs. Private Student Loan Debt

The majority of student loan debt is federal, with a balance of $1.644 trillion, accounting for 92.6% of the total debt. The average federal student loan debt balance is $37,717. On the other hand, private student loans make up a smaller portion of the total debt, with less than 2% of these loans in default as of 2021 Q4.

Student Loan Debt by Institution Type

The average debt of public university students stands at $25,969. However, the percentage of borrowers with debt varies significantly by institution type. For instance, 45.8% of borrowers have debt from for-profit institutions, while 30.7% have debt from public institutions, and 23.4% have debt from nonprofit institutions.

Student Loan Debt by Demographics

Student loan debt also varies by demographic factors. For instance, 34% of adults aged 18-29 have student loan debt, compared to 22% of adults aged 30-44. There are also gender and racial disparities in student loan debt. For example, female bachelor’s degree holders are 4.27% more likely to have debt than their male counterparts, and Black bachelor’s degree holders have on average $25,000 more debt than White bachelor’s degree holders.

Student Loan Debt by Degree Level and Field of Study

The level of student loan debt also varies by degree level and field of study. For instance, graduate degree holders have an average federal debt of $84,812, significantly higher than the average debt for bachelor’s degree holders ($21,566) and associate’s degree holders ($23,500). In terms of field of study, 16.1% of borrowers have debt from medical or health sciences programs, followed by 18.1% from business programs, and 15.6% from education programs.

Student Loan Debt and Loan Forgiveness

The issue of student loan forgiveness has gained traction, with 55% of Americans supporting a $10,000 loan cancellation and 47% supporting a $50,000 loan cancellation. However, 30% of Americans oppose loan cancellation. Support for loan forgiveness varies by political affiliation, with 67% of liberals supporting it compared to 31% of conservatives.

Student loan debt is a significant issue affecting millions of Americans. While the majority of this debt is federal, private student loans also contribute to the total debt. The level of debt varies significantly by institution type, demographic factors, and field of study. The issue of student loan forgiveness is contentious, with a majority of Americans supporting some form of loan cancellation.

Student Loan Debt by Enrollment Status and Program Duration

The data also reveals interesting patterns when we consider the enrollment status and program duration of borrowers. A vast majority of borrowers, 92.2%, are enrolled in full-time programs, with only 7.3% in half-time programs and a negligible 0.5% in less than half-time programs. When it comes to program duration, 99.3% of borrowers are enrolled in programs of long duration, with only 0.1% in programs of moderate duration and 0.6% in programs of short duration.

Student Loan Debt by Field of Study

The field of study also plays a significant role in the accumulation of student loan debt. Business programs account for the highest percentage of borrowers with debt at 18.1%, followed closely by medical or health sciences programs at 16.1%, and education programs at 15.6%. Engineering programs and liberal arts programs account for 8.4% and 12.9% of borrowers with debt, respectively.

Student Loan Debt by Program Completion Status

The completion status of the program also has a significant impact on student loan debt. A majority of borrowers with debt, 71.4%, have completed their program, while 22.7% did not complete their program. Interestingly, 5.2% of borrowers with debt transferred to another institution.

Student Loan Debt by Institution Ownership

The ownership of the institution also plays a role in student loan debt. A majority of borrowers with debt, 91.5%, enrolled in an institution of the same ownership. However, 7.2% of borrowers with debt enrolled in an institution of a different ownership, and 1.2% enrolled in an institution of unknown ownership.

Student Loan Debt by Institution Type and Program Level

The type of institution and the level of the program also significantly impact student loan debt. For instance, 55% of student loan debt is owed by students at four-year public institutions, while 22% is owed by students at for-profit institutions. In terms of program level, 40% of student loan debt is owed by graduate students, while 57% is owed by undergraduates.

Student Loan Debt by Borrower’s Income

The income of the borrower also plays a significant role in student loan debt. For instance, 56% of strong loan forgiveness supporters earn less than $50,000, while 14.3% earn over $100,000. This suggests that lower-income individuals are more likely to support loan forgiveness, possibly because they are more burdened by their student loan debt.

Student Loan Debt by Repayment Status

Repayment status is another crucial aspect of student loan debt. As of early 2020, 75.3% of private student loans were in repayment, while 20% were in deferment. For federal loans, as of 2023, 56.65% were in forbearance, with only 0.88% in repayment. This suggests a significant portion of borrowers are struggling to make regular payments on their loans.

Student Loan Debt by Age Group

Age is another important factor in student loan debt. The largest portion of federal student loan debt belongs to borrowers in their 30s, who hold 32.5% of the debt. Borrowers under 25 years old hold 17% of the debt, while borrowers aged 62 and older hold 4% of the debt. This indicates that student loan debt is a long-term burden for many, extending well into middle age and beyond.

Student Loan Debt by Gender

Gender disparities in student loan debt are also significant. Female bachelor’s degree holders are 4.27% more likely to have debt than their male counterparts, and the average debt for female bachelor’s degree holders is 24.9% more than for male bachelor’s degree holders. This suggests that women are disproportionately affected by student loan debt.

Student Loan Debt by Race

Racial disparities in student loan debt are also stark. Black bachelor’s degree holders have on average $25,000 more debt than White bachelor’s degree holders. Furthermore, 48% of Black borrowers owe more than their initial borrowed amounts, compared to 17% of White borrowers. This indicates that Black students are disproportionately burdened by student loan debt.

Student Loan Debt by Degree Type and Field of Study

The type of degree and field of study significantly influence the amount of student loan debt. For instance, graduate degree holders have an average federal debt of $84,812, significantly higher than the average debt for bachelor’s degree holders ($21,566) and associate’s degree holders ($23,500). In terms of field of study, 16.1% of borrowers have debt from medical or health sciences programs, followed by 18.1% from business programs, and 15.6% from education programs. This suggests that students pursuing graduate degrees or studying in fields such as medicine, business, or education are more likely to accumulate higher student loan debt.

Student Loan Debt by Enrollment Status

Enrollment status also plays a role in student loan debt. A vast majority of borrowers, 92.2%, are enrolled in full-time programs, with only 7.3% in half-time programs and a negligible 0.5% in less than half-time programs. This indicates that full-time students bear the brunt of student loan debt.

Student Loan Debt by Program Completion Status

The completion status of the program significantly impacts student loan debt. A majority of borrowers with debt, 71.4%, have completed their program, while 22.7% did not complete their program. Interestingly, 5.2% of borrowers with debt transferred to another institution. This suggests that those who complete their programs tend to accumulate more debt, possibly due to the longer duration of their studies.

Student Loan Debt by Public Opinion

Public opinion on student loan debt and loan forgiveness is divided. While 55% of Americans support a $10,000 loan cancellation and 47% support a $50,000 loan cancellation, 30% of Americans oppose loan cancellation. Support for loan forgiveness varies by political affiliation, with 67% of liberals supporting it compared to 31% of conservatives. This indicates that student loan debt and loan forgiveness are contentious issues, with varying levels of support among different demographic and political groups.

Student loan debt in the United States is a complex issue that affects a wide range of individuals. It is influenced by a variety of factors, including the type of loan, the type of institution, the borrower’s demographics, their income level, and their repayment status. As the debate around student loan forgiveness continues, it is crucial to consider all these factors to develop fair and effective solutions.

Key Points

• 💰 As of 2023, total student loan debt is $1.774 trillion, averaging $40,505 per borrower.
• 🏫 The majority of student loan debt is federal, accounting for 92.6% of the total.
• 🎓 The average debt of public university students is $25,969.
• 🏢 45.8% of borrowers have debt from for-profit institutions, 30.7% from public institutions, and 23.4% from nonprofit institutions.
• 📊 34% of adults aged 18-29 have student loan debt, compared to 22% of adults aged 30-44.
• 👩‍🎓 Female bachelor’s degree holders are 4.27% more likely to have debt than their male counterparts.
• 🤝 Black bachelor’s degree holders have on average $25,000 more debt than White bachelor’s degree holders.
• 🎓 Graduate degree holders have an average federal debt of $84,812, much higher than bachelor’s degree holders ($21,566) and associate’s degree holders ($23,500).
• 🤝 55% of Americans support a $10,000 loan cancellation and 47% support a $50,000 loan cancellation, but 30% oppose loan cancellation.
• 📚 92.2% of borrowers are enrolled in full-time programs.
• ✔️ 71.4% of borrowers with debt have completed their program, while 22.7% did not complete their program.
• 🏛️ 91.5% of borrowers with debt enrolled in an institution of the same ownership.
• 💵 56% of strong loan forgiveness supporters earn less than $50,000, while 14.3% earn over $100,000.
• 🔄 As of early 2020, 75.3% of private student loans were in repayment, while 20% were in deferment.
• 🕒 The largest portion of federal student loan debt belongs to borrowers in their 30s, who hold 32.5% of the debt.
• 📚 16.1% of borrowers have debt from medical or health sciences programs, followed by 18.1% from business programs and 15.6% from education programs.

Sources

1. Board of Governors of the Federal Reserve System (Fed), Consumer Credit – G.19
2. U.S. Department of Education (ED) Office of Federal Student Aid (OFSA), Federal Student Loan Portfolio
3. PRNewswire, Latest MeasureOne Data Confirms Private Student Loan Market Returning to Pre-Pandemic Norms
4. National Center for Education Statistics (NCES), The Integrated Postsecondary Education Data System
5. Morning Consult National Tracking Poll 
6. The College Board, Trends in Higher Education
7. MeasureOne, Private Student Loan Report
8. Fed, Report on the Economic Well-Being of U.S. Households
9. NCES, Digest of Education Statistics
10. ED, White House Initiative on Educational Excellence for African Americans
11. Federal Reserve Bank of New York, Center for Microeconomic Data
12. U.S. Bureau of Labor Statistics, Consumer Price Inflation Calculator
13. Pew Research Center, 5 Facts About Student Loans
14. Congressional Budget Office, Budget and Economic Data
15. ED OFSA, Loan Forgiveness Reports
16. ED OFSA, 3 Ways to Spot Student Loan Scams
17. United States Department of Commerce Bureau of Economic Analysis, Gross Domestic Product
18. Federal Student Aid: Official Cohort Default Rates for Schools
19. CFPB Steps Up Scrutiny of Student Loan Servicers That Deceive Borrowers About Public Service Loan Forgiveness