How Much Student Loan Debt Is There?

The U.S. student loan debt situation is messy, huge, and increasingly personal for many people. Here’s what’s going on and why it matters, who’s most affected, and what everyone can do about it. 

What’s the Debt Magnitude + Who Holds It 

• Total U.S. student loan debt in 2025 is about $1.81 trillion, including federal and private debt. 

• Roughly 42-43 million Americans carry that debt. That’s a lot of folks (more than many U.S. states’ populations). 

• Over 91% of that comes from federal student loans. Private loans are only around 8–9% of the total. 

Averages, Medians & State Variations 

• Average federal loan balance per borrower: ~$39,000. Including private loans, average creeps up to about $42,600. 

• Median debt (what “most people” have) is lower: between $20,000-$25,000. 

• Some states carry heavier burdens per person: for example, states like Maryland and Georgia show high average balances per borrower. Others like California and Texas lead in total aggregate debt (because of large populations + many borrowers). 

Repayment + Delinquency: What Happens When Payments Resume 

After the payment pause during COVID, repayment resumed in October 2023. Several important things have come out of that: 

• As of January 2024, about 43 million borrowers hold federal loans. (Government Accountability Office) 

• Of those borrowers who were in repayment and not in default: 
  • ~50% (representing ~$706 billion in debt) are making payments on time. (Government Accountability Office) 
  • ~30% are past due (one or more days late) — that covers ~$290 billion. (Government Accountability Office) 
  • The rest are in deferment or forbearance (temporary pauses or reductions in payment due to hardship, school, etc.) — about $254 billion worth. (Government Accountability Office) 

• Delinquency rates have shot up. By some estimates, 4 million+ borrowers are behind on payments now. (Forbes) 

• More than 30% of borrowers with payments due are now 90+ days delinquent (substantially higher than just after the pause or pre-pandemic levels). (The Guardian) 

Defaults: What % and Who 

• About 15% of all federal student loan borrowers — that’s roughly 6.8 million people — are in default. That means they have not met the minimum payments for a long enough period (typically 270 days past due for federal loans). (ConsumerAffairs) 

• Demographics matter: default rates are higher among Black and Hispanic borrowers, women, and those who are older or who have had less stable financial situations. (ConsumerAffairs) 

• The longer someone is in default, the worse things often get — owing more than the original balance (because of fees, interest compounding, collections costs). (ConsumerAffairs) 

Repayment Plans & Forgiveness Programs 

• There are various repayment plans, including income-driven repayment (IDR) plans. These tie monthly payments to income (and family size), which can reduce what someone has to pay monthly. (Government Accountability Office) 

• One newer plan: the SAVE repayment plan, introduced to help borrowers with lower payments. But it has run into legal challenges. Some thousands of applications for SAVE have been denied because of those legal issues. (Politico) 

• Also worth noting: during the pause and forbearance periods, many borrowers weren’t required to make payments, and penalties (including negative credit reporting) were mostly suspended. Once payments resumed, those protections largely ended. (Government Accountability Office) 

Impact on Borrowers’ Lives 

• Monthly budgets are taking hits. Some studies show that after repayments resumed, many borrowers cut spending in other areas (groceries, travel, etc.) to make room for student loan payments. One estimate: median borrower reduced consumption by ~$130/month. (Federal Reserve) 

• Credit scores are also at risk. Delinquency gets reported, defaults come with penalties. For many, missing payments during the pause led to credit scores dropping once negative reporting resumed. (Forbes) 

Risky Trends & Alarms 

• Because delinquency is rising, there is concern that default rates will climb more sharply in the near term. (The Guardian) 

• With some repayment plans being blocked, or in flux, borrowers may not always know what plan they’re eligible for or what the implications are. Eg, people who applied for SAVE expecting low payments are facing denials. (Politico) 

• For many, the cost of living is rising (housing, food, inflation), so adding or restarting a student loan payment feels like adding more water to an already full bucket. 

Who Is More Burdened (Demographics & Income) 

• Borrowers aged 35+ now make up more than half of all federal student loan borrowers (not just young people fresh out of school). Debt doesn’t just disappear when you turn 30. (Forbes) 

• By age group: 
  • 25–34 year olds carry a big chunk of the total debt (multiple hundreds of billions). (Forbes) 
  • Older age groups also owe sizeable amounts, and many continue payments well into their 40s, 50s, 60s. (Forbes) 

• Race & gender disparities: as mentioned, Black and Hispanic borrowers tend to default more often; women, on average, carry similar or greater burdens compared to men in some studies. (Forbes) 

Government Policy + What Borrowers Should Know 

• Collections on defaulted loans restarted on May 5, 2025 for many borrowers. Wage garnishment and other penalties are back in play for those in default. (Investopedia) 

• The SAVE plan and some “lower-payment” options are being challenged legally, which means borrowers need to stay on top of what’s available. Plans change. Eligibility changes. A plan someone signed up for may be blocked later or replaced. (Politico) 

• Important grace periods or “on-ramps” (times when late payments don’t immediately lead to credit damage) have ended, so timing matters. (AP News) 

What This Means & What You (or Your Clients) Should Do 

Because so many people are affected, here are some takeaways & tips (with a little humor): 

1. Check your repayment plan 
   Make sure you’re on the plan that best fits your income. If you’re eligible for income-driven repayment, see how much your payments would be, whether a $0 payment is possible, etc. 

2. Don’t wait for help 
   With legal uncertainties and changing rules, delaying action can cost you more (interest, penalties, credit damage). 

3. Budget for the restart 
   If your payments were paused or reduced, your budget likely changed. Plan ahead: build buffers for grocery bills, rent, insurance — don’t assume everything goes back to “just like before.” 

4. Avoid default if possible 
   Default has serious consequences: wage garnishment, tax refund intercepts, long-term credit damage. 

5. Stay informed 
   Federal policies change. DOTED (the Department of Education) rules, court rulings, etc., can shift repayment options. Use trustworthy sources. 

6. Use available supports 
   Deferment, forbearance, IDR plans, loan rehabilitation may help. Sometimes you qualify for programs you didn’t even know about. 

Final Thoughts 

The student loan issue isn’t just about dollar amounts. It’s about how those dollars impact people’s lives, credit scores, families, and future financial opportunities. 
$1.81 trillion is more than just a number — it’s a burden shared by tens of millions, growing in complexity as repayment resumes, delinquency climbs, and repayment options shift. 

But here’s the bright side: with knowledge, planning, and taking advantage of the right programs, many borrowers can ease the load. And you do have more control than you think.