Updated: September 3, 2023
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The average student loan debt in the U.S. in 2021 was $37,693. There’s a slight increase from the $36,510 recorded average in 2020. Since 2007, the average debt has more than doubled.
Of all consumer debt categories, student loan debt is the second-highest after mortgages. It has reached $1.75 trillion.
US Student Loan Debt by the Numbers
Total and average student loan debt in the country saw a slight increase in 2021, mainly driven by outstanding federal student loan debt.
The outstanding student loan debt in the U.S. is currently at $1.75 trillion. Of this total, 92% is owned by the federal government.
The number of student loan debt borrowers reached approximately 45.3 million in 2021.
Generally, the average student loan debt in the U.S. is $37,693 per borrower.
The average student loan debt from federal institutions is $36,513 per borrower, while the student loan debt from private institutions averages $54,921 per borrower.
A student borrower takes, on average, 20 years to pay off their student loan. For professional graduates, the average goes up to 45 years.
With a total of $1.76 trillion in student loan debt at the end of 2021, the U.S. saw about a 3.5% year-on-year increase from the recorded $1.70 in 2020. Over the past decade, total student loan debt grew by 82.21%.
The 2021 student loan total was mainly driven by federal student loan debt. The federal government handled around 92% of the debt. The remaining 8% was from private institutions.
There are two primary institutions offering student loans: the federal government and private lenders.
In 2021, the federal government shouldered approximately 92% of total student loan debt. That means around 43.4 million borrowers had federal student loan debt. Depending on the type of federal student loan and borrower, the interest rate can range from 3.73% to 4.53% for the past two years for undergraduates. Most federal loans have a 0.0% interest rate until after Aug. 31, 2022, due to the CARES Act. The average federal student loan debt by the end of 2021 was $36,510 per borrower.
Meanwhile, the remaining 8% of student loan debt was from private lenders. In total, the balance for private student loans exceeded $140 billion. On average, private student loan debt was $54,921 per borrower.
California holds the largest student loan debt of $141.8 billion. Texas and Florida come in second and third place, respectively. Texas has a total student loan debt of $120 billion. Meanwhile, the total debt in Florida is $100.9 billion.
The average student loan debt in Washington, D.C. is $54,945 per borrower. It has the highest average in the country.
Texas has 3.65 million borrowers, making it the state with the highest number of student loan borrowers. Florida has the second-highest number of borrowers at 2.62 million, followed by New York (2.46 million), Ohio (1.79 million) and Georgia (1.65 million).
Average student loan debt varies per state. Washington, D.C. recorded the highest average in 2021 at $54,945 per borrower. It also has the highest number of borrowers per capita. Around 17.2% of its residents were in debt. Total student loan debt in the state was $6.5 billion.
North Dakota has the lowest average debt at $28,604 per borrower. Student loan debt in the state totaled $2.5 billion. There were 87,400 borrowers in North Dakota.
People aged 25 to 34 held the highest percentage of student loan debt in all states, including Washington, D.C. and Puerto Rico.
Borrowers with doctorate degrees had the highest average student loan debt at $159,625. The average debt of individuals with a master’s degree was $71,287, while the average for undergraduate students was $36,635.
The average student loan debt for graduate degree holders was 141.8% higher than other student borrowers. Graduate studies refer to degrees beyond a bachelor’s, such as master’s and doctorate degrees.
Most graduate student loan borrowers also carried undergraduate loan debts.
Across the board, the average monthly repayment plans cost for student loans is $460. However, actual monthly repayment may vary depending on the level of education. For instance, the repayment amount for an associate student loan ranges from $281 to $384. Meanwhile, repayment for doctorate student loans ranges from $575 to $1,844.
Repayment terms may vary based on the level of education. While the average borrower repays student loan debt for 20 years, repayment plans can range from 10 to 30 years. For professional graduates, it may take up to 45 years.
For instance, the actual repayment term for a $30,000 graduate student loan is five years and 10 months. With an APR of 3% and a $465 monthly payment, the total repayment cost is $32,800. The table below shows how cost and repayment terms vary as the average debt gets adjusted.
Average Debt | Repayment Term | Ultimate Cost |
|---|---|---|
$30,000 | 5 years, 10 months | $32,800 |
$37,693 | 7 years, 7 months | $42,175 |
$39,351 | 8 years | $44,703 |
$54,921 | 11 years, 8 months | $65,171 |
$48,156 | 10 years | $55,800 |
Source: Education Data Initiative, “Average Student Loan Payment”
Student loans help many individuals support their education. Knowing the average student loan debt, repayment terms and average monthly payment can give you an idea of what to expect when you take out a student loan. MoneyGeek answers some of the frequently asked questions to help you get started.
As of 2021, the country’s number of student loan borrowers was 45.3 million. Of these, 43.4 million have federal student loan debt.
The average student loan debt in the U.S. as of 2021 is $37,693 per borrower. For federal student loan debts, the average is $36,513 per borrower. The average for loans from private institutions is $54,921.
Monthly repayment may vary depending on the level of education. On average, borrowers pay $460 per month.
The average borrower pays off a student loan debt for 20 years. That said, repayment terms may vary. It can range from 10 to 30 years. For professional graduates, it may even reach 45 years.
The average interest rate on a student loan is 5.8% for all borrowers. But rates may vary depending on the education level. For instance, the current interest rate for an undergraduate loan from the federal government is 3.73%. Meanwhile, the rate for graduate and professional student loans is 5.28%.
Average student loan debt has increased during the past decade. However, there are differences in averages per state. MoneyGeek spoke with industry experts to share their insights on student loan data trends in the U.S.
To better understand how student loans and financial aid work, best practices, and how to find the best options for your needs, find relevant financial guides and resources below.
About Nathan Paulus
Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy.
Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.
