Student Loan Debt Statistics that Explain the Crisis

Did you know student loans are the third-largest cause of U.S. consumer debt, behind only mortgages and auto loan debt? Yes, a huge number of young Americans have been forced to put their lives on hold due to crippling loan repayments.

Bearing in mind that college graduates have a much better chance on the labor market than people with lower levels of education and that manual jobs are rapidly disappearing due to advances in technology, it's no wonder more Americans go to college than ever before.

This is one key reason why students and their families are increasingly indebted. Tuition fees are skyrocketing and the average student debt is keeping pace. A dizzying number of people are struggling to cover even the most basic expenses.

Most Important Student Loan Debt Statistics for 2026 - Editor’s Choice

• There were some 18.4 million borrowers repaying a federal student loan debt in 2025.
• The average student walks away from college with almost $39,547 in debt.
• Total U.S. student loan debt reached $1.84 trillion in late 2025.
• A total of 44.6 million people had borrowed money to pay for their studies as of 2025
• Student loans are the second-largest source of average American debt.

Total US student loan debt amounted to more than $1.84 trillion in the final quarter of 2025.

(The Federal Reserve)

There were more than 42.8 million Americans with federal student loan debt as of late 2025.

The average student loan debt for federal loans was $39,547 in 2025.

(Department of Education)

The average has more than doubled since 2007, when it was sitting at $18,233.

Around nine in 10 students use college loans to cover the expenses of attending private, for-profit colleges.

(VOA)

Students at for-profit colleges have lower earnings and higher debt. It’s more likely that they will have a harder time paying back the loans.  

Almost half of borrowers (48%) who attended private for-profit colleges start to repay their loans at default rates within 12 years.

(The Institute for College Access & Success)

This is the case with only 12% of public college students and 14% of non-profit private college attendees.

The average cost of in-state tuition at public universities in 2025-2026 is about $11,950 per year, but the number skyrockets to $45,000 annually for private nonprofit colleges.

(Business Insider)

Most American students who don’t have access to scholarships and grants need to get student loans to pay for their college degrees. Even some of those who do have access to college funding need additional finances to cover living costs, books, and fees.

College loan debt is among the highest for medical students. The median debt for medical graduates is $215,000 for the class of 2025.

(AAMC)

The data sounds even more alarming when we consider the fact that 73% of such students now graduate with debt, up from 71% just a few years before.

The average college debt of dental graduates reached $297,800 in 2025.

(American Dental Education Association)

Although dental school graduates have a good reputation for making their repayments, the survey concluded that such a high level of debt can jeopardize a new dentist’s career.

The typical repayment amount for students’ loans in 2026 is approximately $434 per month, or $5,208 per year.

(Education Data Initiative)

The average borrower now takes around 20 years to repay their debt.  

More than 3.27 million applications for public service student loan forgiveness had been submitted as of 2025.

(Forbes)

Out of those, 1.2 million have received student loan forgiveness as of early 2026.

As of 2025, there were 18.4 million borrowers repaying a federal student loan debt.

(Federal Student Aid; Forbes)

Around 10.9 million borrowers are in student loan deferment, forbearance, or default. 

In 2025, private college debt accounted for 7.7% of the total student loan debt in the U.S.

(Enterval)

The total outstanding private student loan debt stood at around $140.38 billion.

14.7 million Americans aged 25-34 had a federal student loan debt in 2025. Combined, this debt was worth $487 billion.

(Federal Student Aid)

More shockingly, 2.8 million Americans aged 62 or over owed a total of $121.5 billion in student loans.

More than 50% of American students do not take full advantage of federal student loans.

(The Institute For College Access and Success)

Instead of relying on federal student loan debt, which has some in-built protections, these students take out private loans with substantially higher interest rates.

87.3% of all undergraduates claim some type of financial aid.

(NCES)

The average aid package awarded to undergraduates is now around $15,480.

The parent PLUS loan debt in the US reached $116 billion in 2025.

(Federal Student Aid)

The average debt for 2024 was $30,639.

There were 7.7 million federal student loan borrowers in default as of December 2025.

(Federal Student Aid)

The number had spiked due to the end of pandemic-era protections, as there were roughly 5.2 million students in default in late 2024.

43% of borrowers opt for a 10-year standard repayment plan.

(The College Investor)

The SAVE plan, which was declared defunct in early 2026, previously held roughly 7.5 million borrowers who are now transitioning to the new Repayment Assistance Plan (RAP).

More than a third (36%) of older Gen Zers (1997-2001) have student debt.

(Federal Reserve Bank of St. Louis)

In comparison, the same report stated that 31% of Millennials had student debt at that time.

54% of Americans have faced mental health issues due to their student debts.

(ELVTR)

What's more, 56% of Americans with student debt faced anxiety, and 32% had depression due to being in debt.

36% of Americans regret borrowing money to get higher education.

(ELVTR)

Additionally, 23% stated that they weren't sure if getting a loan for school was a good investment.

Graduate student loans will face a new annual cap of $20,500 starting in mid-2026.

(Department of Education)

The policy also introduces a lifetime aggregate limit of $100,000 for graduate studies, excluding any existing undergraduate debt.

Total debt forgiven through the PSLF program reached $90.6 billion as of January 2026.

(Forbes / Department of Education)

This milestone averages out to nearly $75,000 in relief per forgiven borrower, a significant jump from previous years.

Roughly 10% of federal student loan dollars were considered 90+ days delinquent by the fourth quarter of 2025.

(Federal Reserve)

This spike followed the conclusion of the government's on-ramp period, which had previously protected borrowers from the harshest consequences of missed payments.