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For many Americans, going to college means taking on student debt. Roughly four in 10 people who pursue education after high school say they borrowed money to help pay for school, according to data from the Federal Reserve. While student loans can expand access to higher education, they can also create long-term financial pressure, delaying milestones like buying a home, building savings, or investing for retirement.
To understand the economic and social impact of student debt, it’s important to look at the numbers. Below, we take a deep dive into who is borrowing, how much they owe, and how debt levels vary across different groups.
Key Points
• About 43 million Americans owe $1.7 trillion in federal student loans as of early 2026.
• Total U.S. student debt is $1.85 trillion, with federal loans comprising the bulk and private loans totaling $181 billion.
• Borrowers aged 30 to 59 typically have the highest average debt balances due to factors like graduate school debt and accumulated interest.
• Women and borrowers of color are more likely to take out student loans and often hold higher balances than their peers.
• More than half of federal student loan borrowers owe $20,000 or less, while a small percentage carry extremely high balances.
How Many Americans Have Student Loans?
As of the first quarter of 2026, approximately 43 million Americans — roughly one in six adults — hold federal student loan debt. Together, they owe about $1.7 trillion in federal student loans, according to the Education Department’s Federal Student Aid office. Millions of additional borrowers carry private student loan debt.
Federal vs Private Student Loan Debt
Federal student loans account for approximately 92% of all student debt in the U.S. The rest (7.6%) comes from private student loans issued by banks, credit unions, and online lenders. Total outstanding private student loan debt currently stands at around $181 billion, according to the Consumer Financial Protection Bureau.
Federal loans are generally available regardless of credit history and offer fixed interest rates, income-driven repayment, deferment options, and potential loan forgiveness programs. Private student loans, on the other hand, typically require a credit check (and often a cosigner) and may carry variable rates. However, private loans often allow students to borrow up to the full cost of attendance, which can exceed federal borrowing limits.
New federal borrowing restrictions taking effect in 2026 — including the elimination of the Grad PLUS program — may increase reliance on private student loans, particularly among graduate and professional students.
Who Is the Typical Student Loan Borrower?
Student loan borrowers span every age group and demographic, though borrowing patterns vary significantly by age, gender, race, income, and education level.
Student Loan Debt by Age
Adults under age 30 make up the largest share of federal student loan borrowers, representing nearly 34% of all borrowers, according to the Education Data Initiative. However, borrowers between ages 30 and 59 tend to carry the highest debt balances after college, likely because of graduate school debt and years of accumulated interest.
|
Age Group |
Percentage of Federal Borrowers |
Average Remaining Debt |
|
Under 30 |
33.7% |
$23,795 |
|
30-39 |
28.1% |
$42,014 |
|
40-49 |
17.9% |
$44,797 |
|
50-59 |
12.1% |
$45,126 |
|
60+ |
8.3% |
$37,360 |
Source: Education Data Initiative
Student Loan Debt by Gender and Race
Research consistently shows that women and people of color are more likely to rely on student loans and often carry higher balances than their peers.
Average Student Loan Debt for Men and Women
Among bachelor’s degree holders:
• 49.3% of female students take out federal student loans, compared to 41.9% of male students.
• On average, women borrow 3.63% more.
Among associate degree holders:
• Female students are 16% more likely to borrow federal student loans than male students.
• Women at this level also borrow approximately 14% more on average.
Average Student Loan Debt by Race
Borrowing disparities are also significant across racial and ethnic groups:
• Among all bachelor’s degree holders, Black students are more likely to borrow federal student loans, with 82.9% taking on debt.
• Four years after graduation, Black borrowers owe $25,000 more than white borrowers with bachelor’s degrees.
• Nearly 48% of Black student borrowers owe more than their original loan balance four years after graduation, compared to 17% of white borrowers.
• About 59% of Asian graduates leave college with educational debt.
• Approximately 67% of Hispanic and Latino graduates borrow for college.
Student Loan Borrowers by Debt Size
More than half of federal student loan borrowers (52.1%) owe $20,000 or less. At the other end of the spectrum, a relatively small percentage of borrowers carry extremely high balances, often due to graduate or professional school borrowing.
|
Amount Owed |
Percentage of Borrowers |
|
Under $5K |
15.9% |
|
$5K-$10K |
16.11% |
|
$10K-$20K |
20.1% |
|
$20K-$40K |
21.4% |
|
$40K-$100K |
18% |
|
$100K-$200K |
5.74% |
|
$200K+ |
2.65% |
Source: Education Data Initiative
How Many People Have Student Loans by Demographic?
Middle-income students are most likely to borrow for college, representing approximately 50.8% of all student loan borrowers, according to the Education Data Initiative.
Living arrangements and marital status also influence borrowing patterns:
• 57.4% of students living on campus take out federal student loans.
• 31.1% of students living with their parents use federal loans.
• 41.7% of married undergraduate students rely on federal student loans.
Recommended: Average Student Loan Debt by State
What Percentage of College Students Take Out Student Loans?
Overall, around 40% of all students borrow money to pay for college. However, borrowing rates vary significantly depending on the type of degree pursued.
According to Federal Reserve data:
• 48% of adults with a bachelor’s degree report taking out student loans.
• 54% of adults with graduate degrees used student loans to finance their education.
• 28% of people who attended college but did not complete a degree say they borrowed student loans.
Graduate and professional students tend to borrow the most because advanced degree programs are often more expensive and federal borrowing limits for undergraduate students are lower.
Recommended: Average Student Loan Debt by Career
What Is the Total Student Loan Debt in the U.S.
Americans collectively owe approximately $1.85 trillion in student debt, including federal and private loans. The vast majority of this balance — roughly $1.7 trillion — is held in federal loans, while private loans account for around $181 billion. Of that private debt, about $30 billion consists of refinanced loans.
How Student Loan Debt Has Changed Over Time
Student loan debt in the U.S. has grown dramatically over the past two decades. In 2006, total outstanding student debt stood at roughly $520 billion. By 2026, that figure had climbed to approximately $1.85 trillion. This means student loan debt has increased by around 256% over the past 20 years.
Several factors have contributed to this sharp rise, including:
• Rising college tuition and fees
• Increased college enrollment
• Higher average borrowing amounts
• Slower repayment timelines
• Growing graduate and professional school debt
The Takeaway
Student loans play a major role in how Americans pay for higher education. While borrowing can create financial challenges after graduation, student loans also help millions of students access college and career opportunities that might otherwise be out of reach.
As tuition costs continue to rise, many students and families rely on a combination of savings, scholarships, grants, work-study programs, and federal and private student loans to finance their education. Understanding how student borrowing works — including how much students typically borrow and which groups are most affected – can help borrowers come up with a smart financial plan.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
FAQ
Who holds the majority of student debt?
Adults under age 30 make up the largest share of federal student loan borrowers. However, those aged 30 to 59 carry the highest average debt balances, with the 50–59 age group owing an average of $45,126. In addition, women and people of color often hold higher balances than their peers; for instance, Black borrowers owe $25,000 more than white borrowers four years after graduation.
What is the average student debt in the U.S.?
The average student loan balance in the U.S. is approximately $39,535. Debt levels vary significantly by age: Borrowers in the 50 to 59 age group carry the highest average balance at $45,126, while those under 30 average $23,795.
What is the total amount of student debt owed by Americans?
Americans collectively owe approximately $1.85 trillion in student debt. This figure includes about $1.7 trillion in federal student loans and around $181 billion in private student loans.
How do you get rid of student loan debt?
Student loan debt is typically repaid through monthly payments over a set repayment term. Borrowers may reduce or eliminate debt faster by making extra payments or refinancing to a lower interest rate and shorter term. Some federal loans may qualify for forgiveness programs, such as Public Service Loan Forgiveness or teacher loan forgiveness. Federal student loans may also be discharged due to disability or school closure.
What happens to student loan debt when you die?
When a borrower dies, federal student loan debt is typically discharged and does not need to be repaid. For private student loans, policies vary by lender; some may discharge the debt, while others may require repayment from the borrower’s estate or a cosigner if one exists.
How does student loan debt affect the economy?
Student loan debt can affect the economy by reducing borrowers’ ability to spend, save, and invest. Many borrowers delay buying homes, starting businesses, and saving for retirement because of monthly loan payments. At the same time, student loans help more people access higher education, which can increase earning potential and contribute to long-term economic growth. Economists often view student debt as both a financial burden for some households and an investment in future workforce development.
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