7 Facts You Didn't Know About Student Loan Debt

These days, a college education is considered a luxury for many American families. For the 2024-25 school year, a full-time student could expect the annual tuition price for a public, four-year, in-state school to be $11,610, and for a private nonprofit school, the cost jumped to $43,350, according to the College Board’s latest data. Those figures reflect a year-over-year 2.7% and 3.9% jump respectively, before adjusting for inflation.

Multiply that by four years, add out-of-state or private school tuition, or pursue an advanced degree, and it’s easy to see why so many students and their parents have to borrow money to cover the cost of tuition and related school expenses. In fact, 42.5 million borrowers have federal student loans, which equates to about 93% of all student loan debt.

You might be one of them or have a family member or close friend who is. But how much do you really know about student debt? Here, we have the information and answers you need to know about the cost of college and student loan debt.

1. Americans currently owe over $1.8 trillion on their student loans.

That was the cumulative student loan balance among American consumers as of August 2025. A decade ago, that figure was closer to $1.1 trillion. Student loans are now the largest form of consumer debt in the U.S. other than mortgages and HELOCs — exceeding car loans and credit card debt.

2. The average student loan balance is more than $39,000.

The average federal student loan borrower today owes $39,075. Borrowers with private loans owe even more: as high as $42,673, on average.

When divided up by generation, Generation X carries the highest average balance at $44,240. Baby Boomers come in second, with balances averaging $41,877. Millennials have the next-highest average balance of $40,438, followed by the Silent Generation at $31,106, and Gen Z with $22,948.

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3. Individual debts vary widely.

The average debt is just that — the average. Recent figures show that student loan balances are as varied as age, state and program statistics. Total balances can range from less than $1,000 to more than $200,000, depending on the borrower.

This may not come as a surprise when compared to the total cost of attending college. For the 2024-25 school year, the University of Southern California (USC) topped the list of most expensive schools at $71,647 a year for tuition and fees, according to U.S. News and World Report. On the other hand, a handful of schools, including Berea College in Kentucky and College of the Ozarks in Missouri, offer free college tuition to students who qualify.

4. Current student debt varies widely by state and college.

While not technically a state, Washington, D.C. topped the list of states with the highest student debt, with an average of $54,561 — more than $10,000 higher than the next-highest state, Maryland, which averaged $43,781. The bottom of the list (or perhaps the top, depending on your point of view) includes North Dakota, Wyoming, and Iowa, all with less than $31,000.

Likewise, the program students pursue can have a huge impact on the amount of student debt facing graduates. The cost of graduate school can vary widely by program. Specialized degrees — medicine, law, or pharmacy, for example — could leave students facing even higher debt burdens, sometimes upwards of $100,000.

5. Student loan debt disproportionately impacts women and borrowers of color.

Student loan debt can have a number of devastating consequences for borrowers of all backgrounds. It’s shown to make major life milestones such as buying a home and starting a family less attainable. And for those who can’t afford their payments, student loan default can wreak havoc on their credit and overall finances.

However, certain borrowers are disproportionately burdened by student loan debt. For instance, Black college graduates owe an average of $25,000 more in student loan debt than white college graduates. And four years after graduation, Black students owe an average of 188% more than what white students borrowed.

Additionally, Hispanic and Latino borrowers were the most likely to delay getting married and having children due to student loan debt.

Further, 64% of student loan debt is held by women, with the highest average amount of debt belonging to Black women.

6. Americans with student debt are likely to have multiple loans.

The Department of Education currently contracts a few different loan servicers . The federal student loan will be assigned to a loan servicer when it is disbursed. For borrowers with multiple student loans, it is possible that they’d have multiple loan servicers. That could be a lot to juggle, and one reason borrowers may consider federal student loan consolidation.

7. The number of borrowers defaulting on their student loans is in the seven figures.

As of 2025, approximately six million borrowers are in default on their student loans. This represents over 10% of federal student loan balances that are either delinquent or in default, according to the New York Fed’s May 2025 report.

Risk factors for student loan default can include having other forms of debt, such as a credit card balance, car payment, or mortgage. And defaulting on loans can also put borrowers at risk for having other bills, such as medical expenses, end up in collections as well.

What’s to be done? Even if you just stop paying on your student loans, they won’t go away. And in the meantime, interest will continue to accrue and, in some cases, capitalize (along with penalties and other downsides to nonpayment, like being sent to collections).

One way to potentially lower monthly student loan payments is by refinancing student loans to extend your loan term, get a lower interest rate than what you currently have, or both. (Note that refinancing federal loans makes them ineligible for federal benefits and protections, such as income-driven repayment, Public Service Loan Forgiveness, and deferment and forbearance. Also, lengthening your loan term may mean paying more in interest over the life of the loan.)

The Takeaway

Student loan debt has topped $1.8 trillion in America today, making it the next-largest debt category after mortgages and HELOCs. Tens of millions of Americans have student loan debt, with the average amount hovering around $40,000. These figures aren’t being shared to scare you, but rather to encourage you to think early and often about how to manage any student loan debt you may carry. For instance, student loan refinancing may help you better manage repayment.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Which age group has the highest amount of student debt?

Currently, Gen X carries the most student debt per person, followed by Baby Boomers, Millennials, the Silent Generation, and Gen Z.

Who owes the most student debt?

According to the Education Data Initiative, Black students owe an average of 188% more than white students, according to data gathered four years after graduation.

How common is student debt?

Student debt is very common, with more than 40 million American adults carrying federal student loan debt. That means at least one in six people likely owe money for their education.

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