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Student DebtFor decades, higher education has been a key step to middle- and upper-class prosperity for millions of Americans. But the rising costs of a degree—tuition, fees, living costs, and more—have left many with significant debt burdens after leaving school. As of the first quarter of 2024, roughly 43 million Americans held a cumulative $1.6T in federal student debt—a sum equal to the 12th largest economy in the world. Factor in private loans, and the total rises to $1.74T. The average household with student debt owed around $55K, with estimated payments of $500 per month. Average annual tuition now ranges from around $10K for an in-state public university to almost $40K for a private institution. Those figures have tripled since 1970, accounting for inflation.Explore Student Debt

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Do student loans affect your credit score?While student loans can impact your credit score, that's not necessarily a bad thing. Repaying the loan on time can strengthen your credit score, whereas paying late can hurt it. To find out more about how student loans can impact your credit score, read this article. The Week Should you pay off your student loans early?While paying off student loans can feel like a big achievement, some experts argue that it’s not a good idea to pay off student debt early if you have to sacrifice retirement or emergency savings to do so. Bankrate Around two in five students in any given academic year take out some form of student loansAmong the nearly two in five students who take out loans, 90% of those students rely on federal loan programs. These federal loans come in three flavors—subsidized, unsubsidized, and options for parents and graduate students. Each option has its own financial considerations; see an overview of each, along with what to consider when borrowing funds to cover higher education costs. StudentAid.Gov How student loans became incredibly prevalentAs of 2024, the total outstanding federal student loan debt sat at $1.6T, held by almost 43 million borrowers. Explore the history of student loans and how they became prevalent in the US, as told by several influential actors in the creation of the program over the years. Lumina Foundation 43% of Americans don't have savings to pay for a $1K emergencyThat's according to data from January 2026 shared by US News. Among those who did have an emergency fund, the median balance was $5K. US News & World Report An MBA return on investment calculatorOn average, the total investment for an MBA degree is more than $200K, which includes tuition, living expenses, lost income, and potential interest on student loans. This calculator can help you figure out your own future MBA degree’s estimated ROI based on your unique situation. MBA.com Gen X has the most student debt per borrowerGen X is the generation that came of age in the 1980s and 1990s. A podcast episode explains how this came to be. Spotify Private K-12 schools rely on tuition; colleges rely on funding for researchTuition, endowments, donors, and grants often fund private schools, allowing them to eschew national curriculum standards. Private colleges and universities also charge tuition, but often rely on federal funding for research. Investopedia The 'dupe' economy is fueled by the youthful thrill of thriftHistorically, you don't want people to know you have a knock-off luxury item. But today's younger generations are embracing the "dupe" economy, an open celebration of luxury knock-off items where consumers are proud to pay less for something roughly equivalent to premium brand offerings. Salon.com US women got the right to open a credit card in their own name in 1974Before that year, banks in the US were legally allowed to deny women credit or charge them higher interest if they failed to get a male cosigner. Kiplinger Credit cards were the fourth-highest source of US consumer debt as of 2024US consumer debt nationwide totaled $17.9T as of 2024 Q3. Mortgage debt ranked as number one, with student loan debt coming in at number two. Education Data Initiative College tuition has climbed 600% in 40 yearsThe cost of attending college has outpaced inflation in the US. Tuition has climbed more than 600% in the past 40 years; more than three times the inflation rate. Many students have racked up student loans to cover rising college costs, while others have chosen not to attend college altogether. MyeLearningWorld The scope of 529 plans has expanded, but 529s still have some drawbacksThe tax-advantaged accounts can be used to pay for K-12 education, apprenticeship programs, and student loans, in addition to their original purpose: paying for college. But 529s have downsides, such as fees and penalties for non-qualified uses. Investopedia See the growth of US consumer debtAmericans reached an all-time high debt burden in 2024. Data compiled from The Kaplan Group shows the evolution of auto loans, mortgages, credit card debt, and student loans from 2003 to 2023, and finds that after a brief decline after 2008, the total debt burden grew rapidly. Visual Capitalist Student loan debt differs from state to stateWhile Washington, DC, has the highest average federal student loan debt in the country at $54,795 per borrower, North Dakota has the country's lowest average at $29,647 per borrower. Visual Capitalist For some debtors without assets that can be sold or returned, filing for bankruptcy can provide a path toward a clean slateHowever, the bankruptcy process does not apply to several types of common debt, including money owed toward child support or alimony payments. Most debtors also do not qualify for relief from student loan payments. Nolo College majors ranked by median resulting student debtAs of 2023, student loans were the third-largest category of US household debt at $1.6T. But not all student debt is created equal. Statistically, some majors incur more debt than others. Behavioral science majors, for instance, had the highest median student debt as of 2022. Visual Capitalist Student loan forgiveness is a contentious topicPresident Joe Biden’s plan to forgive up to $20K of student debt per borrower was ultimately struck down by the Supreme Court. But at the center of the debate about his proposal sat one core question that persists today: Is student loan forgiveness fair? Vox John Oliver explains the student debt problemFrom serious policy approaches to novelty giveaways from fast food chains, paying down student loans has become a central issue in public consciousness. John Oliver takes an entertaining look at the problem, how it became a political hot potato, why it’s difficult to solve, and more (warning—strong language). Last Week Tonight Calculate your student loan paymentsAs of summer 2024, interest rates on federal student loans ranged from 6.5% for undergraduates to above 9% for loans taken out by parents (private loans can exceed 17%). The interest rate determines how quickly the amount owed grows. Use this calculator to estimate your monthly payments. Sallie Mae Student debt has a widespread economic impactStudent debt is no different than the big rent or car payment that comes out of someone’s paycheck every month: Its presence affects that household’s purchasing power. Multiply that household by the 43 million Americans who had outstanding federal loan debt in September 2023, and student debt’s impact becomes considerable. Investopedia More than 3 million student loan borrowers were in default at the end of 2021More than 3 million student loan borrowers were in default at the end of 2021. While default rates have declined since pandemic-era payment pauses, failing to pay off student debt can still have serious consequences, from a low credit score to the government withholding wages. BestColleges.com A study followed a cohort of Black graduates beginning in the 1995–96 school yearWhile access to higher education led to improved outcomes across minority groups in the US, a significant gap exists in the average amount of debt held and the time it takes to pay back loans. This study found median Black borrowers still owed 95% of the principal two decades later. Brandeis University Student loan debt isn’t evenly distributed across age groupsMillennials and Gen X borrowers account for more than 70% of outstanding federal student debt ($1.1T). The discrepancy is driven by several factors, including a drop in college enrollment by younger Americans and older cohorts having more years to pay off balances. Investopedia Just 7% of student loan borrowers account for 40% of outstanding student loan debtMost student loan debt went to support graduate studies. Total student loan debt in the US is more than $1.6T. Downloadable tables show the raw data behind federal student aid. StudentAid.Gov Total student debt has ballooned to $1.7T, up almost 150% since the Great RecessionWhile the burden falls across roughly 43 million Americans, the debt load itself is not uniform—millennials and those pursuing graduate or professional degrees represent an outsized portion of loans. NerdWallet The federal government offers billions in student aid each year in the form of scholarships, grants, loans, and moreThe very first—and necessary—step is to fill out a federal application to get your information into the system. Known as the Free Application for Federal Student Aid, or FAFSA, this key form must be completed by Oct. 1 for the following academic year. StudentAid.Gov The average cost for an in-state, public university is close to $30K per yearTo cover the cost, students turn to a variety of sources. Parental contributions plus savings funds cover about half of the expenses on average, with students relying on other sources—typically federal aid, in the form of scholarships and loans—to cover the rest. Education Data Initiative The first federal student loan program began in 1958As the Cold War heated up, federal officials recognized the need to provide financial aid to students pursuing degrees in areas critical to national security, like science, math, and engineering. These programs evolved to broadly support the general population, both increasing access to college while acting as a driver of increased costs. This six-part series takes a deep dive into the history of federal student aid. Lumina Foundation The federal government uses the FAFSA to determine student's eligibility aid Apply for billions of dollars in scholarships, grants, loans, and Federal Work-Study funds using the Free Application for Federal Student Aid form. Get an overview of how the FAFSA form can help you finance your education with money from the federal government, your state, and school; understand when to apply; and find out what you'll need to fill it out. Federal Student Aid

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