Highest Amount of Student Loan Debt in the United States Explained

The United States has a staggering amount of student loan debt, with the total debt exceeding $1.7 trillion.

This massive debt burden affects millions of Americans, with over 44 million borrowers carrying student loan debt.

The average student loan debt per borrower is around $31,300, which can be a significant financial strain.

Many students graduate with debt, with 70% of graduates in the class of 2020 leaving college with loans.

Student loan debt can be overwhelming, but understanding the different types can help you make sense of it. A slim majority of undergraduates borrow money from the federal government, accounting for 92.8% of student loan debt.

Federal loans dominate the student loan landscape, with 51.8% of undergraduate program completers using federal loans at some point. Stafford Loans make up 53.6% of federal student loan debt, with 18% being subsidized and 35.6% being unsubsidized.

Here's a breakdown of the types of federal student loans:

Private loans, on the other hand, account for 7.2% of outstanding student loan debt, with a national private student loan balance of $128.8 billion.

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Federal student loans are a significant portion of the overall student loan debt in the US. They account for 92.8% of student loan debt, according to recent data.

The majority of federal student loans are in the form of Stafford Loans, which make up 53.6% of federal student loan debt. This is a crucial piece of information for students and parents considering borrowing federal loans.

Stafford Loans can be further broken down into subsidized and unsubsidized loans. Subsidized Stafford Loans account for 18% of federal debt, while unsubsidized Stafford Loans account for 35.6%. This distinction is important because it affects the interest rates and repayment terms of the loans.

The federal government also offers direct consolidated loans, which make up 33.3% of federal student loan debt. These loans can be a helpful option for borrowers who need to combine multiple loans into one.

Parent PLUS loans and Grad PLUS loans are other types of federal loans that are used by parents and graduate students, respectively. Parent PLUS loans account for 6.8% of student loan debt, while Grad PLUS loans account for 6.1%. Perkins loans, on the other hand, make up a very small portion of federal student loan debt, at 0.2%.

Take a look at this: Fafsa Grad Student Loan Amount

Here's a breakdown of the types of federal loans and their corresponding percentages of total federal student loan debt:

Overall, federal student loans are a significant part of the student loan debt landscape in the US.

Private student loans are a significant part of the overall student loan debt landscape. They constitute 7.2% of the outstanding student loan debt.

The national private student loan balance is a staggering $128.8 billion. This is a substantial amount of money, and it's essential to understand where this debt comes from. 88.93% of this balance is for undergraduate loans, while 11.07% is for graduate student loans.

7.3% of students use student loans from a private source, such as a bank or credit union. This is a relatively small percentage, but it's still a significant number of students who are relying on private loans to fund their education.

Here are some key statistics about private student loan debt:

Navient, the largest student loan servicing company in the United States, has been involved in several controversies. As of 2022, Navient is no longer contracted to service federal loans from the U.S. Department of Education.

In 2017, the Consumer Financial Protection Bureau (CFPB) sued Navient, alleging gross mismanagement and deceiving students and borrowers. This included failing to correctly apply or allocate payments made by borrowers.

Navient was also accused of pushing borrowers to pay more on loans than they could, or pushing them into forbearance. The company was further accused of obscuring information about maintaining lower payments.

In 2019, the CFPB received over 20,000 complaints related to both federal and private loans, resulting in ongoing enforcement actions. This is a stark reminder of the importance of scrutinizing student loan servicing companies.

Here are some of the key allegations against Navient:

The "Operation Game of Loans" initiative, launched in 2017, aimed to hold student debt relief companies accountable for their actions. This effort involved the Federal Trade Commission (FTC), CFPB, US Dept. of Education, and state Attorney General offices.

Student loan debt doesn't affect everyone equally. A staggering 54.1% of independent undergraduate students accepted federal student loans.

Middle-income students are the most likely to take out federal loans, with 58.4% doing so. This might not be surprising, but it's worth noting that living in campus housing doesn't necessarily mean you'll take out loans – 63.6% of students in campus housing still use federal loans.

Here's a breakdown of who's more likely to take out federal loans:

These statistics highlight the complexity of student loan debt and how it affects different demographics.

Student loan debt affects people from different racial and ethnic backgrounds in varying ways. Among bachelor's degree holders, black students are the most likely to borrow federal loans at 76.1%.

The financial burden is particularly significant for black students, who owe an average of $25,000 more than white or Caucasian borrowers for bachelor's graduates.

This disparity is also evident in the repayment patterns of student borrowers. Four years after graduation, 48% of black student borrowers and 17% of white student borrowers owe more than they initially borrowed.

Interestingly, this trend continues into graduate school, where 40% of black students accumulate debt, compared to 22% of white students.

Here's a breakdown of the student loan debt by race:

Note: The data for white or Caucasian students is not provided in the article section facts.

Student loan debt varies significantly based on the level of education attained. The average federal student loan debt is $19,270 for those with an associate's degree, $26,190 for bachelor's degree holders, and a staggering $106,850 for graduate degree holders.

Those with higher levels of education are more likely to have higher student loan debt balances. In fact, 60.5% of all graduate school completers have federal student loan debt.

The average graduate student owed $106,850 in total federal loan debt in 2016, which is equivalent to $106,850 in June 2022 dollars. This highlights the significant financial burden that graduate students often face.

Here's a breakdown of the average federal student loan debt by educational attainment:

Doctors of Medicine are the most likely to have student loan debt, with 81.0% owing any student loan debt and 80.3% having unpaid loans from graduate school.

Student Loan Debt Forgiveness is a growing option for borrowers, especially those in public service roles. According to the latest data, over 2 million PSLF borrowers have one or more approved employment certification forms with a positive loan balance.

The Federal Student Aid data shows that a total of 6.1 million PSLF forms have been submitted, with 3.9 million completed forms.

A significant number of borrowers have been granted PSLF, TEPSLF, and the limited waiver, with 670,264 unique borrowers receiving forgiveness.

On average, borrowers have had $69,776 forgiven through these programs.

Here's a breakdown of the numbers:

Student loan debt is a massive burden for many students, especially women. Women take about two years longer than men to repay student loans.

The cost of education has more than doubled over the past generation, while household incomes have barely budged. This means that students, especially women, are taking on a significant amount of debt to finance their education.

Seventy percent of complaints about student loan servicing companies are related to mismanagement and deliberate deception. This can lead to students being placed in suspended payment options that rack up interest instead of income-driven repayment plans.

In 2015, less than 6% of eligible borrowers of FFELP loans were enrolled in income-driven repayment plans. This is a stark contrast to nearly 30% of borrowers with loans made directly by the Department of Education.

Here are the top student loan servicing companies with the most complaints:

Recent graduates are facing the worst unemployment crisis since the Great Depression, and women are faring worse than men. Women filed nearly 59% of unemployment claims in the early weeks of the pandemic, despite being only half of the labor force.