Student loan debt statistics in 2020: record $ 1.6 trillion
Student loan debt in 2020 is now around $ 1.56 trillion.
The last student loan Debt statistics for 2020 show just how severe the student debt crisis has become for borrowers of all demographics and age groups. In the United States, 45 million borrowers collectively owe nearly $ 1.6 trillion in student debt. According to the Institute for College Access and Success, the average student loan debt for Class of 2018 members is $ 29,200, a 2% increase from the previous year.
If you are a student borrower, the following statistics on student debt may help you make more informed decisions As it concerns student loan refinancing, student loan consolidation, student loan repayment and student loan forgiveness.
Student loan statistics: overview
Total student loan debt: $ 1.56 trillion
Total US borrowers with student loan debt: 44.7 million
Average student debt: $ 32,731
Average student loan payment: $ 393
Median student debt: $ 17,000
Median student loan payment: $ 222
Student loan default or default rate: 10.8% (over 90 days past due)
Direct loans – Accumulation in default: $ 119.8 billion (5.5 million borrowers)
Direct loan in forbearance: $ 122.9 billion (2.8 million borrowers)
(Source: As of Q3 2019, Federal Reserve and New York Federal Reserve)
Student loan forgiveness statistics
The student loan forgiveness comes in many forms. Two of the most popular types of student loan forgiveness are the public service loan forgiveness and the teacher student loan forgiveness.
Public service loan forgiveness statistics
As of September 30, 2019, here are the latest statistics on public service student debt:
Cumulative borrowers from the civil service loan forgiveness: 1,195,497
Borrowers who have submitted applications: 109,932
Total number of applications: 136,473
Number of approved applications: 1,561
Number of refused requests: 123 146
% of requests refused due to ineligible payments: 56%
% of requests refused due to missing information: 24%
Borrowers who have benefited from a student loan discount: 1,139
Total amount remitted: $ 71.9 million
(Source: US Department of Education)
States with the most student loan debt
It’s no surprise that the most populous states have higher overall student loan debt. California, Florida, Texas, and New York are among the top four states for total student debt outstanding among resident borrowers.
California, Florida, Texas and New York make up more than 25 of all student loan borrowers in the United States who collectively owe more than $ 420 billion in student loan debt.
States with High Student Debt and States with Low Student Debt
Connecticut has the highest average student loan debt per student ($ 38,669) in the Class of 2018.
Utah has the lowest average student loan debt per student ($ 19,728) in the class of 2018.
Highest and lowest average student debt by state
Student loan debt per capita in selected U.S. states
In the United States, in 2016, the average student debt per capita was $ 4,920. Pennsylvania, New York State and Michigan have some of the highest student debt per capita in the country.
Arizona: $ 4,760
California: $ 4,160
Florida: $ 4,480
Michigan: $ 5,330
New York: $ 5,570
Ohio: $ 5,700
Pennsylvania: $ 5,690
Texas: $ 4,510
Breakdown of student loan borrowers by balance
In 2019, over 42 million student loan borrowers had student loan debt of $ 100,000 or less.
Over 3.0 million student loan borrowers have student loan debts greater than $ 100,000, and about 800,000 of that total have student loan debts greater than $ 200,000.
The largest concentration of student loan debt is $ 20,000 to $ 40,000, which represents 9.5 million student loan borrowers.
Number of student loan borrowers by age group
According to the federal student loan portfolio, the largest concentration of student loan borrowers is 25 to 34 year olds, followed by 35 to 49 year olds. There are 23.2 million student loan borrowers under the age of 34, this group representing more than half of all student loan borrowers.
In 2019, here is the breakdown of student loan borrowers by age:
$ 121.2 billion (8.2 million borrowers)
25 – 34: $ 501.5 billion (15.0 million borrowers)
35 – 49: $ 575.5 billion (14.1 million borrowers)
50 – 61: $ 241.2 billion (6.0 million borrowers)
> 62: $ 75.9 billion (2.1 million borrowers)
Student loan debt owed by the student loan program
Over 35 million student loan borrowers hold approximately $ 1.2 billion in direct loans. Another 12.1 million student loan borrowers hold $ 262 billion in Federal Family Education Loans (FFELs).
Direct loans: $ 1,242.6 billion (35.1 million borrowers)
Federal loans for family education (FFEL): $ 261.6 billion (12.1 million borrowers)
Perkins Loans: $ 6.1 billion (2.0 million borrowers)
TOTAL: $ 1,510.3 billion
Unpaid student loan debt by type of student loan
Subsidized Stafford: $ 280.7 billion (29.5 million borrowers)
Unsubsidized Stafford: $ 516.0 billion (28.9 million borrowers)
Stafford combined: $ 796.7 billion (33.2 million unique borrowers)
PLUS graduate: $ 75.2 billion (1.4 million borrowers)
Parent PLUS: $ 96.1 billion (3.6 million borrowers)
Perkins: $ 6.1 billion (2.0 million borrowers)
Consolidation: $ 536.1 billion (11.7 million borrowers)
Student Loan Debt Statistics by Loan Status for Direct Loans
About $ 685 billion in direct loans from 18.5 million student loan borrowers are in the process of being repaid. About 12 million student loan borrowers are in a situation of student loan deferral, student loan forbearance, or default.
Student loans at school: $ 131.5 billion (7.0 million borrowers)
Student loans in repayment: $ 685.5 billion (18.5 million borrowers)
Deferred student loans: $ 128.4 billion (3.6 million borrowers)
Student loans withheld: $ 122.9 billion borrowers (2.8 million borrowers)
Student loans in default: $ 119.8 billion (5.5 million borrowers)
Student loans during grace period: 45.2 billion borrowers (1.8 million borrowers)
Student Loan Debt Statistics by Repayment Plan for Direct Loans
As of Q4 2019, there were 10.8 million borrowers with $ 200.7 billion in student loan debt in the Student Loan Repayment Plan (student loan repayment in 10 years or less), which is the greater concentration of borrowers in the repayment of student loans.
The second most concentrated group of borrowers are enrolled in income-based repayment (IBR) at $ 170.4 billion and 2.8 million borrowers.
Level repayment plan ( $ 200.7 billion (10.8 million borrowers)
Level repayment plan (> 10 years): $ 77.6 billion (1.7 million borrowers)
Progressive repayment plan ( $ 90.4 billion (3.0 million borrowers)
Progressive repayment plan (> 10 years): $ 16.7 billion (0.3 million borrowers)
Income-Based Reimbursement Scheme (ICR): $ 33.6 billion (0.7 million borrowers)
Income Based Reimbursement Scheme (IBR): $ 170.4 billion (2.8 million borrowers)
Pay As You Earn Plan (PAYE): $ 96.7 billion (1.4 million borrowers)
Revised As You Earn (REPAYED) Compensation Plan: $ 168.9 billion (2.9 million borrowers)
Student Loan Manager by Loan Status
For Direct Loans and FFEL Loans held by the US Department of Education, here is the breakdown of these selected student loan services:
Other important statistics on student loan debt
In addition, there are several other surprising statistics regarding the state of student loan debt:
- Almost seven in ten (65%) seniors who graduated from public and private non-profit colleges in 2018 had student loan debt.
- Public colleges: 66% of borrowers who graduate from public colleges have student debt. The average student loan debt at public colleges is $ 25,550, which is 25% higher today than in 2008.
- Private non-profit colleges: 75% of borrowers who graduate from private non-profit colleges have student debt. The average student loan debt at private non-profit colleges is $ 32,300, which is 15% higher today than in 2008.
- For-profit colleges: 88% of for-profit college graduate borrowers have student debt. The average student loan debt at for-profit colleges is $ 39,950, 26% more than it was in 2008.
- Almost half (47%) of private loan borrowers have borrowed less than they could have in Federal Stafford loans for college.
- While the volume of private lending peaked at $ 18.1 billion in 2007-2008, the volume of private lending is now $ 7.8 billion in 2014-2015.
- 6% of all undergraduates – 1,373,000 students – borrowed private loans in 2011-12.
- Four in five 2016 graduates with state debt attended schools in just four states: Texas, Minnesota, Massachusetts and New Jersey which awarded only 14% of bachelor’s degrees.
- Of the 100 colleges where graduates borrow the most in private loans, 85 are four-year nonprofit colleges and 34 are located in Pennsylvania.
- About 20% of student loans in the Class of 2012 were private student loans.
- Graduates who receive Pell scholarships are more likely to take on more debt: 88% had student loans in 2012, with an average balance of $ 31,200 per borrower.
- Graduates who did not receive a Pell scholarship: 53% of those who never received a Pell scholarship were in debt, with an average student loan balance of $ 26,450 per borrower, or $ 4,750 less than debt average of indebted Pell beneficiaries.
(Data source includes: Institute For College Access and Success, National Student Loan Data System, US Department of Education, Enterprise Data Warehouse, Mark Kantrowitz, Federal Student Aid, and FedLoan Servicing).