Do people regret student debt?
It's perhaps no surprise, then, that 24% of Americans with student loan debt say it's their biggest financial regret, according to a survey from personal finance site Bankrate.
Key findings. The average federal student loan debt held as of the third quarter of 2023 is $37,645. Black Americans hold an average (median) of $26,000 in student loan debt, while white Americans have $25,000. Fifteen percent of Americans with student loans are behind on their payments.
Key Takeaways
Carrying student debt can affect your ability to buy a home if your debt-to-income ratio is too high. If you have too much student loan debt, you won't be able to save as much for retirement. Student loan debt can lower your credit score, especially if you fail to make on-time payments.
The average student loan debt owed per borrower is $28,950, so $80K is a larger-than-average sum. However, paying off your balance is possible. Since payments on an $80,000 balance can be high, extending the repayment term to lower monthly payments may be tempting.
Key Takeaways:
Almost one-quarter of all borrowers reported regret, over 40% experienced stress, 20% reported hopelessness, and less than 40% said their education was worth the financial cost. Student loans prevent financial milestone and the accumulation of financial assets.
Americans hold $1.77 trillion nationwide in student debt, but some 20- and 30-year-olds are foregoing the expectation to repay those loans.
The Federal Reserve Bank of Philadelphia recently offered an explanation for this situation. It reported that more than half of borrowers who didn't make a payment in October — including some who were on plans allowing them to make payments as a percentage of their income — said it was because they couldn't afford it.
Research from EducationData.org shows that almost 45.3 million Americans hold an average federal student loan debt balance of $37,338. Combined, student loan debt in the U.S. adds up to nearly $2 trillion. According to the same data, the average student loan monthly payment is $503.
The average student loan debt for bachelor's degree recipients was $29,400 for the 2021-22 school year, according to the College Board. Among all borrowers, the average balance is $38,290, according to mid-2023 data from Experian, one of the three national credit bureaus.
43.2 million borrowers have federal student loan debt. The average federal student loan debt balance is $37,088, while the total average balance (including private loan debt) may be as high as $39,981. Less than 2% of private student loans enter default as of 2021's fourth financial quarter (2021 Q4).
How aggressive should you pay off student loans?
The answer depends on your situation. You probably should if you can afford to pay more than the minimum payment without sacrificing other financial goals. Because student loans come with low fixed interest rates and fixed monthly payments, you may not be in a hurry to pay them off.
Key takeaways. Paying off student loans early can benefit you financially, but it should typically come second to building your emergency fund and retirement savings. People with private student loans or without other debt tend to benefit more from paying off student loans early.
The monthly payment on a $150,000 student loan ranges from $1,591 to $13,468, depending on the APR and how long the loan lasts. For example, if you take out a $150,000 student loan and pay it back in 10 years at an APR of 5%, your monthly payment will be $1,591.
It's perhaps no surprise, then, that 24% of Americans with student loan debt say it's their biggest financial regret, according to a survey from personal finance site Bankrate.
Black and Latino borrowers are disproportionately impacted by student loan debt. Due to racial wealth disparities, most Black and Latino college students come from low-income backgrounds and can count on only a fraction of the financial support.
Proponents argue that large-scale debt cancellation would help advance racial and socioeconomic equality and boost the economy. Without the burden of student loans, they say, more people will be able to buy homes, take entrepreneurial risks, or save for retirement.
Do student loans go away after 7 years? While negative information about your student loans may disappear from your credit reports after seven years, the student loans will remain on your credit reports — and in your life — until you pay them off.
However, 40% of the 22 million borrowers who had bills due failed to make a payment as of mid-November, according to a new report published by the Department of Education. That means about 9 million Americans who have payments due are not making them.
Roughly 43 million Americans have outstanding federal student loan debt — that's about 13% of the U.S. population, per census data. Source: Federal Student Aid, Portfolio by Age Q4 2023.
About 43.4 million Americans have federal student loan debt. Find out how many people have student loan debt by year, state, age, degree level, and other demographics in this guide.
What happens if you don't pay off student loans in 25 years?
Any borrower with ED-held loans that have accumulated time in repayment of at least 20 or 25 years will see automatic forgiveness, even if the loans are not currently on an IDR plan. Borrowers with FFELP loans held by commercial lenders or Perkins loans not held by ED can benefit if they consolidate into Direct Loans.
Based on the GOP's reaction, if the program is deemed unlawful, debt relief may be taken off the Democrat's agenda. Some Republicans have opposed debt relief because it makes it harder for the army to recruit since a free education motivates many civilians to join the military.
What is the monthly payment on a $70,000 student loan? The monthly payment on a $70,000 student loan ranges from $742 to $6,285, depending on the APR and how long the loan lasts. For example, if you take out a $70,000 student loan and pay it back in 10 years at an APR of 5%, your monthly payment will be $742.
If you racked up $30,000 in student loan debt, you're right in line with typical numbers: the average student loan balance per borrower is $33,654. Compared to others who have six-figures worth of debt, that loan balance isn't too bad. However, your student loans can still be a significant burden.
| Total Student Loan Debt | Repayment Period |
|---|---|
| $10,000-$20,000 | 15 years |
| $20,000-$40,000 | 20 years |
| $40,000-$60,000 | 25 years |
| Greater than $60,000 | 30 years |
