Average student loan debt has been on the rise as families try to keep up with soaring college costs. The average total student debt hovers near $30,000, with 2024 college graduates owing $494 more in loans on average compared with the prior year, according to U.S. 海角社区app data.
Data reported to U.S. 海角社区app by 992 colleges in an annual survey showed that graduates from the class of 2024 who took out en route to a bachelor’s degree borrowed $29,890 on average. That’s $560 more than borrowers from the class of 2015 shouldered, representing a roughly 2% increase in the amount students borrowed over that decade.
The average debt of graduates varies based on institution type, per U.S. 海角社区app data. Those who graduated in 2024 from a ranked private, nonprofit college borrowed more on average, at $32,806, than public college graduates, who took out $25,549. The average debt among 2024 graduates of proprietary or schools was $32,787.
However, a smaller percentage of students are borrowing money to pay for college. In 2020, about 62% of college graduates took on federal student loan debt, while in 2024, 56% of graduates had borrowed, per data reported to U.S. 海角社区app.
The average total student loan debt, which includes both federal and , jumped by $11,169 from 2005 to 2017. But in recent years, the average amount borrowed has stabilized.
Factors That Lead to Student Loan Borrowing
Borrowing is often tied to the cost of college tuition and fees, and other educational expenses such as housing, food and textbooks. Financial aid can help cover these expenses, but families often experience a between financial aid received and the remaining cost of college.
“A lot of students continue to face what we call the affordability gap, and the majority of students who are facing that gap do turn to the to cover it,” says Michele Zampini, associate vice president of federal policy and advocacy at The Institute for College Access & Success.
Public institutions in particular have seen declines in state funding, she says.
“?States have been less and less able to subsidize their public institutions as the vast majority of students enroll in public institutions, whether two-year or four-year,” Zampini says.
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Over the last few decades — since the ’80s — states have been removing more of these costs from their budgets and putting them “on the backs of individual students and families to make up in the form of tuition and fees and other costs,” she says. “That’s kind of the broader why over the last several decades, we’ve seen the ‘I can work my way through college’ versus ‘I can’t cover costs without taking on debt.'”
But within the last five to 10 years, Zampini says, “the picture does change a little bit. Tuition costs are sometimes lowering in some sectors and borrowing is actually going down slightly, especially around undergraduates. But that doesn’t tell the entire story. It’s still too expensive and there’s still a really wide gap, especially for students with lower incomes. ?However, compared to the peak of tuition costs or the peak of borrowing, it has declined a little bit over the past several years.”
There’s also broad societal pressure about a college degree being “essential for career success,” Jesse Moore, senior vice president, head of student debt at Fidelity Investments, wrote in an email. That means “students are willing to take on debt in hopes of a better future. It’s a decision rooted in optimism, but it comes with long-term financial implications,” he says.
How Does Student Loan Debt Affect Borrowers?
Student loans are a burden for many Americans, especially when inflation rises significantly or during an economic recession. National student loan debt was $1.64 trillion in the second quarter of 2025, according to a quarterly by the Federal Reserve Bank of New York issued in August 2025.
This debt often has a major impact on the quality of life for those who take out loans to especially for borrowers who go into default, experts say.
“Student loan debt has a ripple effect on nearly every aspect of a borrower’s life,” Moore says. “It can delay major milestones like buying a home, starting a family or saving for retirement. Having debt can also take an emotional toll. Borrowers often report feeling stressed, anxious and overwhelmed.”
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technically occurs after more than 270 days of overdue payment, leading to potential legal implications and lost eligibility for further federal student aid. About 10% of aggregate student debt was reported to be at least 90 days past due, per Federal Reserve data.
“Defaulting on a student loan is something we always encourage borrowers to avoid if possible, because the consequences can be severe,” Moore says. “Defaulting can damage your credit score, making it harder to qualify for future loans or even rent an apartment. In the case of federal loans, your wages can be garnished, and you may lose access to important benefits like deferment or income-driven repayment plans. It’s a situation that can quickly spiral, which is why education and proactive support are so critical.”
What to Consider Before Taking Out a Student Loan
As prospective students start thinking about college, cost should not be the only factor. Research colleges’ outcomes data and potential future earnings, experts say.
“More than non-Pell take out federal student loans,” Zampini says. “The idea that students from low-income backgrounds have sufficient grant aid or state aid to cover their costs is not true. A lot of those students say, ‘We basically can’t enroll in college without taking on some type of debt.’ It becomes this question of, ‘Is this good debt or is this bad debt?’ That really depends on what type of program the student enrolls in, if they are able to complete some kind of degree or credential that then increases their earning potential and enables them to make good on that loan investment and repay over time.”
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Ultimately, if you decide to take out a loan, “it’s essential to understand what you’re signing up for,” Moore says. “That means looking at the total cost of the loan — not just the amount borrowed, but the interest and repayment terms over time.”
Zampini advises undergrads to maximize the amount of federal student loans they can take out before considering private loans, since federal options usually come with “more consumer protections” and “typically lower rates.”
“If you are looking at the private market, be very discerning about what company you’re working with, what lender you’re working with and see if there are any other options that you can take on before taking on that private debt,” she says. “The repayment terms are typically really strict and the rates are typically higher, and many times they’re a variable rate. So those loans are just not anywhere near the kind of consumer-friendly ‘product’ that is available through the federal government.”
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Update 09/23/25: The data above reflects information U.S. 海角社区app received as of Aug. 22, 2025.
