For 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.
Hours of research by our editors, distilled into minutes of clarity.
About 43 million Americans hold a cumulative $1.6T in federal student debt. That's more than the country's combined credit card balance, according to data from in the first quarter of the year 2024.
While 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.
A simulator lets you select different income levels, high school experience, race and ethnicity, and more. How does meeting with a counselor alter your trajectory? Should you emphasize extracurriculars or test scores?
To 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.
As 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.
As 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.
Grad and professional school cost more than undergraduate schools. Individuals with advanced degrees owe many times more than graduates with bachelor’s degrees. For example, the average student debt held by a PhD was around $125K in 2023, while those with undergraduate debt averaged $37K.
Student 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.
While 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.
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Most 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.
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