QoD: How many Americans have over $1,000,000 in student debt? (2024)

FAQs

QoD: How many Americans have over $1,000,000 in student debt? ›

Meru said, “you'd have a mental breakdown.” Due to escalating tuition and easy credit, the U.S. has 101 people who owe at least $1 million in federal student loans, according to the Education Department. Five years ago, 14 people owed that much. More could join that group.

While he is exceptional—only 101 people out of 41 million student-loan borrowers owe more than a million dollars—his case highlights the flaws in a student-loan program that offers graduate students and parents unlimited access to federal loans and generous repayment plans.

Roughly one in five Americans holds student debt. Most students graduate with around $30,000 in loans, but a small portion of borrowers hold an outsize share of student debt. More than one-third of the total debt is held by the 7 percent of borrowers who owe more than $100,000, according to the Washington Post.

This year, Forbes reports $1.75 trillion in total private and federal student loan debt and an average of $28,950 owed per borrower in the US. While President Joe Biden has rolled out several rounds of student loan forgiveness, an aid package for borrowers of all circ*mstances has yet to be approved.

If you have six figures of student loan debt, you know how daunting repayment can seem. Student loan debt in excess of $100K can cause you to pay thousands in interest charges, and your monthly payments can take up a substantial amount of your cash flow.

43.2 million borrowers have federal student loan debt. The average federal student loan debt balance is $37,088, while the total average balance (including private loan debt) may be as high as $39,981. Less than 2% of private student loans enter default as of 2021's fourth financial quarter (2021 Q4).

The average debt an American owes is $104,215 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans. Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state.

Student loans in the U.S. are generally either owned by the federal government or financial institutions. The federal government fully guarantees almost all student loans. Some student loans are held by agencies like Sallie Mae or a third-party loan servicing company.

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.

A 2019 study from New York Life found that the average age when people finally pay off their student loans for good is 45.

Is America the only country with student debt? ›

The U.S. isn't the only place in the world where students have to take on loans to go to college. Examining student debt by country can be very instructive, as some places are very creative when it comes to tuition and how they address paying back student loans.

Georgia has a higher prevalence of student loan debt and more student debt per capita than any other state. Maryland is the state with the highest average student loan debt. Wyoming and Utah have lower student debt per capita than other states.

However, over the past 30 years, college tuition prices have increased faster than median incomes, leaving many Americans with large amounts of student debt that they struggle or are unable to, pay off.

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (WSJ): Due to escalating tuition and easy credit, the U.S. has 101 people who owe at least $1 million in federal student loans, according to the Education Department.

Average student debt by degree

Some graduate students leave school with six figures of debt. In the 2019-20 school year, 13% of those who earned master's degrees, 13% of doctoral program graduates, and 57% of professional degree recipients took out $100,000 or more to pay for college and graduate school.

Your monthly payment is likely high if you have $200,000 or more in student loans, making the idea of extra payments seem near impossible. However, paying extra might help get you out of debt significantly faster. Let's say you have $200,000 in student loans at 6% interest on a 10-year repayment term.

What is considered a lot of student loan debt? A lot of student loan debt is more than you can afford to repay after graduation. For many this means having more than $70,000 – $100,000 of total student debt.

In 2021, Americans' median student loan debt was between $20,000-$25,000. However, average student loan debt varies dramatically by race. Black adults in particular tend to bear the highest burdens across indicators, from student loan borrowing rates to default rates to average debt.

The average outstanding balance for a Gen Z consumer with student loans is already $24,473 — over 10% more than their older millennial counterparts at this point in their life. A staggering 70% of Gen Z has already delayed crucial financial decisions due to educational debt.