2025 Student Loan Debt: The cost of college has increased steadily over the past 30 years. In that time, tuition at public four-year colleges has gone up from $4,160 to $10,740. Private nonprofit colleges have seen an even bigger jump, with tuition rising from $19,360 to $38,070, after adjusting for inflation. As college costs have grown, more students have needed loans and financial aid to help pay for their education.
How Much Do Students Borrow?
In the United States, the total student loan debt is $1.75 trillion, which includes both federal and private loans. On average, each borrower owes about $28,950. According to Forbes, most student loans (about 92%) are federal loans, with the rest being private loans. More than half of students from public four-year colleges (55%) and private nonprofit colleges (57%) take out student loans to pay for their education.
States with the Most and Least Student Debt
| Highest debt states | Lowest debt states | ||
|---|---|---|---|
|
New Hampshire
|
$39,928
|
Utah
|
$18,344
|
|
Delaware
|
$39,705
|
New Mexico
|
$20,868
|
|
Pennsylvania
|
$39,375
|
California
|
$21,125
|
|
Rhode Island
|
$36,791
|
Nevada
|
$21,357
|
|
Connecticut
|
$35,853
|
Wyoming
|
$23,510
|
Source: The Institute for College Access and Success
While many Americans continue to pursue higher education, the increasing cost has led some to question whether it is worth it. A 2024 study by NerdWallet found that while 57% of Americans believe a four-year degree is valuable, 30% of people who borrowed money for their education regret taking out student loans.
Average Student Loan Debt by State
Federal student loan borrowers nationally have an average balance of $35,210. The five states and territories with the highest balance are as follows:
1. Washington, D.C. $54,708.52
2. Maryland. $42,350.91
3. Georgia. $40,268.87
4. Virginia. $38,251.37
5. Florida. $37,709.72
| State/territory | Average loan balance |
|---|---|
|
Alabama
|
$35,848.13
|
|
Alaska
|
$34,055.73
|
|
Arizona
|
$34,693.64
|
|
Arkansas
|
$32,188.84
|
|
California
|
$36,755.80
|
|
Colorado
|
$35,932.11
|
|
Connecticut
|
$34,713.76
|
|
Delaware
|
$36,135.11
|
|
District of Columbia
|
$54,708.52
|
|
Florida
|
$37,709.72
|
|
Georgia
|
$40,268.87
|
|
Hawaii
|
$36,238
|
|
Idaho
|
$32,228
|
|
Illinois
|
$37,233
|
|
Indiana
|
$31,483
|
|
Iowa
|
$29,350
|
|
Kansas
|
$31,502
|
|
Kentucky
|
$31,685.24
|
|
Louisiana
|
$33,376.54
|
|
Maine
|
$32,679.74
|
|
Maryland
|
$42,350.91
|
|
Massachusetts
|
$33,710.38
|
|
Michigan
|
$35,253.08
|
|
Minnesota
|
$32,513.98
|
|
Mississippi
|
$35,381.31
|
|
Missouri
|
$34,412.96
|
|
Montana
|
$32,414.91
|
|
Nebraska
|
$30,978.93
|
|
Nevada
|
$33,663.96
|
|
New Hampshire
|
$33,119.66
|
|
New Jersey
|
$35,202.31
|
|
New Mexico
|
$33,550.79
|
|
New York
|
$37,196.72
|
|
North Carolina
|
$36,632.59
|
|
North Dakota
|
$27,874.56
|
|
Ohio
|
$33,490.59
|
|
Oklahoma
|
$31,011.14
|
|
Oregon
|
$36,230.49
|
|
Other
|
$44,150.11
|
|
Pennsylvania
|
$34,535.56
|
|
Puerto Rico
|
$29,480.74
|
|
Rhode Island
|
$31,779.66
|
|
South Carolina
|
$36,729.04
|
|
South Dakota
|
$29,798.42
|
|
Tennessee
|
$35,431.18
|
|
Texas
|
$32,285.33
|
|
Utah
|
$31,861.93
|
|
Vermont
|
$37,037.04
|
|
Virginia
|
$38,251.37
|
|
Washington
|
$35,223.26
|
|
West Virginia
|
$31,121.28
|
|
Wisconsin
|
$30,777.92
|
|
Wyoming
|
$30,360.53
|
|
Source: Direct Portfolio Data by Location Q1 2023
|
Student Loan Repayment
Since the start of the Covid-19 pandemic, student loan payments have been temporarily paused. Federal student loan payments have been on hold since March 2020, and most federal loans are currently in forbearance. However, in October 2023, nearly 37 million student loan borrowers will have to restart their monthly payments.
At the beginning of 2020, only 2.7 million borrowers had their federal loans in forbearance. According to Federal Student Aid By the end of 2021, that number increased to 24 million borrowers. However, this forbearance period is expected to end in May 2022, and federal student loan payments will resume.
| Status | Amount of debt | Number of borrowers |
|---|---|---|
|
In-school
|
$118 billion
|
6.4 million
|
|
Grace period
|
$41 billion
|
1.6 million
|
|
Repayment
|
$16 billion
|
0.5 million
|
|
Deferment
|
$113 billion
|
3.1 million
|
|
Forbearance
|
$968 billion
|
24 million
|
|
Default
|
$112 billion
|
5.1 million
|
Student Loan Debt by Degree
The amount of student loan debt varies depending on the type of degree a student pursues. Graduates with a bachelor’s degree typically owe around $29,300. However, those who pursue graduate or professional degrees face much higher debts.
Graduate students usually owe $77,300, while law school graduates carry an average debt of $132,740. Medical school students face even higher amounts, with debts averaging $212,341, and dental students owe about $296,500.
These high debts often come with the promise of higher salaries in the future, but it can take years or even decades to pay them off.
Parent PLUS Loans
Many parents borrow money to help pay for their children’s education through Parent PLUS loans. On average, parents owe $30,639 in these loans. This extra debt can put a strain on families, delaying parents’ own financial goals, such as saving for retirement.
Debt by Field of Study
Some fields of study also come with significant debt. Graduates from nursing, pharmacy, and veterinary schools owe anywhere from $40,000 to $296,000, depending on the program.
Student Loan Debt by Age and Gender
Student loan debt also differs by age. Borrowers between the ages of 50 and 61 carry the highest average debt, at $46,790, which shows how loans can impact people well into their retirement years. Younger borrowers under 24 owe an average of $14,162, while those aged 25 to 34 have debts of about $33,150.
| Age group | Amount owed | Number of borrowers |
|---|---|---|
|
24 or younger
|
$110 billion
|
7.6 million
|
|
25 to 34
|
$500 billion
|
14.9 million
|
|
35 to 49
|
$622 billion
|
14.4 million
|
|
50 to 61
|
$282 billion
|
6.4 million
|
|
62 and older
|
$98 billion
|
2.4 million
|
Gender plays a role in student loan debt as well. According to Federal Reserve of St. Louis Women, on average, borrow slightly more than men, with women owing $31,276 compared to $29,270 for men.
- 47% of women hold student loan debt
- 40% of men hold student loan debt
Average Student Loan Debt by Race
- 50% of Black adults have student loan debt, with an average balance of $9,800.
- 44% of white adults have student loan debt, with an average balance of $8,700
- 37% of Hispanic/Latino adults have student loan debt, with an average balance of $7,000
However, black women face even greater challenges. They graduate with 43% more undergraduate debt and nearly 99% more graduate school debt than white women, according to a 2022 study by The Education Trust. This highlights the ongoing disparities in access to education and financial resources for marginalized groups.
