As the U.S. government implements its coronavirus student debt relief plan, here are some underlying figures to help you understand how much such proposals might help.
In the charts below, we’ll focus on federal student loans, as they represent the bulk of outstanding debt. Have a look to gauge the lay of the land as leaders in Washington attempt to deal with the college debt in the era of the coronavirus. (And refer to our student loan statistics report for background data on student debt.)
- 20 million Americans have an average $276 monthly federal student loan bill
- Borrowers accrue $158 in interest every month, on average, $5.3 billion altogether
- Monthly payments and outstanding balances vary widely across the states
- Most borrowers owe less than $20,000, but not in all states
- Gen Xers and boomers carry bigger balances than millennials
- African-American college grads carry bigger debts than other races and ethnicities
- Fewer than half of student borrowers have active monthly payments
- 85% of borrowers are current on their monthly bills (excluding collections)
- Fewer than half of borrowers in repayment are on a 10-year payoff plan
- The vast majority Direct loan borrowers in deferment are still in school
- Discretionary forbearance is the most common type
- Plenty of borrowers – especially parents – use alternative debt to pay for school
20 million Americans have an average $276 monthly federal student loan bill
| Federal Student Loans by the Numbers | |
|---|---|
| Total Federal Student Debt (Trillions) | $1.5 |
| Total Number of Federal Student Loan Borrowers (Millions) | 42.8 |
| Number of Federal Student Loan Borrowers (Millions)… | |
| in Repayment | 20 |
| in Default | 7.7 |
| in Forbearance or Deferment | 6.2 |
| in School or Grace | 8 |
| in Unemployment or Economic Hardship Deferment | 0.32 |
| Who Owe Less Than $10,000 | 14.9 |
| Who Owe More Than $100,000 | 2.9 |
| Are Behind on Their Payments | 3 |
| Average… | |
| Federal Student Loan Balance | $33,545 |
| Monthly Federal Student Loan Payment | $276 |
| Monthly Student Loan Payment, Private and Federal Student Loans | $300 |
| Monthly Interest Accrued per Borrower from Federal Loans | $158 |
Borrowers accrue $158 in interest every month, on average, $5.3 billion altogether
| Interest Accrued on Federal Student Loans in 2019 | ||
|---|---|---|
| Interest Accrued (Millions) | Average per Borrower Accruing Interest | |
| Annually | $63,555 | $1,897 |
| Monthly | $5,296 | $158 |
| Note: As of 9/30/19, the end of the DoEd’s fiscal year. Number of borrowers accruing interest include all borrowers in repayment, default, forbearance and deferment at end of fiscal year. | ||
Monthly payments and outstanding balances vary widely across the states
Most borrowers owe less than $20,000, but not in all states
Gen Xers and boomers carry bigger balances than millennials
African-American college grads carry bigger debts than other races and ethnicities
Fewer than half of student borrowers have active monthly payments
85% of borrowers are current on their monthly bills (excluding collections)
Fewer than half of borrowers in repayment are on a 10-year payoff plan
The vast majority Direct loan borrowers in deferment are still in school
Discretionary forbearance is the most common type
Plenty of borrowers – especially parents – use alternative debt to pay for school
| How People Financed Education Costs | ||
|---|---|---|
| Own Education | Child’s or Grandchild’s Education | |
| Student loan | 93% | 81% |
| Credit card | 24% | 15% |
| Home equity loan | 7% | 11% |
| Other loan | 12% | 0% |
Sources
Department of Education data as of December 31, 2019; 2019 Federal Student Aid annual report ; “Trends in Student Aid 2019,” The College Board; anonymized My LendingTree credit reports.
