The average student loan debt for borrowers in the United States is around $37,000 per person. This figure includes both federal and private loans for undergraduate and graduate degrees. However, the exact amount you might owe depends on the type of school you attend, your degree, and how long you take to finish.
Understanding the Average Debt Number
The most commonly cited average is about $37,000 per borrower, but this number can be misleading. For example, many students borrow less than $10,000, while others borrow over $100,000 for professional degrees. The average is pulled up by those with very high balances.
According to recent federal data, the total outstanding student loan debt in the U.S. exceeds $1.7 trillion. That means millions of borrowers are managing payments, but the average per borrower helps put the scale into perspective.
Average Debt by Degree Type
Your degree choice significantly impacts how much you borrow. Here is a quick breakdown of typical average debt levels:
| Degree Level | Average Debt |
|---|---|
| Associate degree | $20,000 |
| Bachelor’s degree | $30,000 |
| Master’s degree | $50,000 |
| Professional degree (law, medicine) | $100,000+ |
These figures are approximate and vary by institution and state. Public schools tend to have lower average debt than private or for-profit schools.
How Debt Differs by School Type
Where you go to school matters a lot. Students at public four-year universities borrow less on average than those at private non-profit or for-profit institutions. For example, the average debt for a public university graduate is around $27,000, while private non-profit graduates average about $34,000.
For-profit colleges often have the highest average debt, sometimes exceeding $40,000, with lower graduation rates and higher default rates. This makes it essential to compare costs before choosing a school.
Why Some Borrowers Owe More
Several factors increase your total debt beyond the sticker price of tuition:
- Living expenses like rent, food, and transportation
- Books and supplies that aren’t covered by financial aid
- Interest that accrues while you’re in school or during deferment
- Graduate school costs that add on top of undergraduate loans
Even small differences in interest rates can add thousands over a 10-year repayment term.
Federal vs. Private Loan Averages
Federal loans make up the majority of student debt, with about 92% of all student loans being federal. The average federal loan debt per borrower is roughly $36,000. Private loans average around $54,000 per borrower, but they are less common.
Private loans often have higher interest rates and fewer repayment options. That’s why experts recommend exhausting federal aid first before turning to private lenders.
Repayment and Default Rates
Default rates are a key indicator of how well borrowers manage debt. The national default rate for federal loans is about 10% within three years of entering repayment. Borrowers with less than $10,000 in debt are less likely to default than those with higher balances.
Income-driven repayment plans can lower monthly payments to as little as 10% of discretionary income. These plans are available for federal loans and can prevent default.
What This Means for You
Knowing the average debt helps you set realistic expectations, but your personal situation may differ. Before borrowing, calculate your expected monthly payment after graduation. A good rule is to keep your total student loan payments under 10% of your projected starting salary.
If you’re planning to attend a school that costs more than the average, look for scholarships, grants, or work-study opportunities to reduce the need for loans.
Tips to Reduce Your Debt
Here are practical steps to lower your borrowing:
- Fill out the Free Application for Federal Student Aid (FAFSA) every year
- Choose a public in-state school when possible
- Work part-time during the school year
- Graduate in four years by taking a full course load each semester
- Consider community college for the first two years
Every dollar you don’t borrow saves you about $1.50 in interest over a 10-year repayment plan.
Conclusion
The average student loan debt of $37,000 is a useful benchmark, but your actual debt depends on many factors. By understanding how averages vary by degree and school type, you can make informed choices that keep your debt manageable. Always borrow only what you need, and explore all free aid options before taking out loans.
Frequently Asked Questions
How much average student loan debt do most graduates have?
The average student loan debt for a bachelor’s degree graduate is about $30,000, but the overall average across all borrowers is around $37,000.
What is the average student loan debt for a master’s degree?
Master’s degree holders typically owe about $50,000 on average, though this can be higher for professional programs.
How can I avoid having high student loan debt?
You can reduce debt by attending a public school, applying for scholarships, working part-time, and graduating on time.
Is federal or private student loan debt higher on average?
Private loans have a higher average balance of about $54,000, while federal loans average around $36,000 per borrower.
What is the average monthly payment for student loans?
The average monthly payment for a typical 10-year repayment plan is about $300 to $400, depending on your total debt and interest rate.
