There are over 43.2 million student loan borrowers that have a total of $1.73 trillion in student loan debt. Here is the average student loan debt balance by state.

While the average balances across the United States hover in a range, Washington DC has the highest average student loan debt, while North Dakota has the lowest average student loan debt.

Here's a breakdown of the average student loan debt by state in 2024. Make sure you check out all of our student loan debt statistics.

Nationwide Student Loan Fast Facts

The descriptive statistics below reflect the state of student loan borrowers across the United States through the third quarter of 2023. However, the delinquency facts in the table below are likely skewed because of the repayment restart.

Note, given the pandemic and all federal student loan payments being paused, the average student loan payment data is skewed. You can see the past average student loan payment and average student loan debt by graduating class here.

Although debt levels continue to rise, some student loan borrowers are seeing their debt loads fall. Nearly half (49%) of all borrowers who took out loans to pay for their education have paid the loans off in full. 

Among current borrowers, 31.4% saw their debt loads shrink in 2023. 

Student Loans By State Fast Facts

While the nationwide debt statistics paint a concerning picture, the actual debt loads vary significantly from state to state within a range of about $30,000.

While it's expected to see that California has the most borrowers, it's interesting to see some of the other data.

*Washington D.C. is a district rather than a state, but its average student loan balance is a whopping $54,945.

Student Loan Debt By State Breakdown

You can see a state by state breakdown of the student loan debt situation below.

Once you've completed your 5 consecutive years, you can apply for forgiveness under the program. 

Note: You cannot combine both PSLF and Teacher Loan Forgiveness.

A circumstance where it might not make sense is if you don't plan on working for 10 years. If you meet the 5 year criteria, and don't plan on teaching any longer, Teacher Loan Forgiveness could make sense.

Another circumstance where it could make sense is if you haven't consolidated your loans and have FFEL loans. Since FFEL loans don't qualify for PSLF, you could do Teacher Loan Forgiveness first, then consolidate your loans and go for PSLF. 

The difficult part of Perkins loans is that they are administered by your college where you received the loan. In order to apply for forgiveness, you need to reach out to your loan servicer or the financial aid office where you received the Perkins Loan.

Note: Perkins Loans stopped in 2017. It's pretty rare for a teacher to still have these types of loans.

Option 4. State-Based Loan Repayment Assistance Programs

45 states and the District of Columbia all offer state-based student loan repayment assistance programs. These programs are designed to help states staff teachers in areas or programs where they have shortages. 

We have a complete list of state-based student loan forgiveness programs here: Student Loan Forgiveness Programs By State.

It's important to note that, while you may qualify for multiple programs, you cannot overlap programs. For example, if you qualify for a state-based program, you cannot qualify for PSLF at the same time - you would need to do it sequentially. 

That's why it's important to look at the value of the state-based program and your own situation prior to signing up for any program.

The student loan crisis is a complex issue with multiple underlying causes. Rising college costs, increased student borrowing, complicated repayment options and a lack of adequate oversight have all contributed to the problem.

Responsibility for this crisis is shared by several stakeholders:

• Federal and state governments
• Educational institutions
• Student loan servicers
• Private lenders
• Individual borrowers and their parents (who may not fully grasp the long-term implications of their loans)

Colleges have raised tuition faster than inflation, and government grants have failed to keep pace with increases in college costs, pushing more costs onto students and their families. Loan servicers and lenders have also been criticized for misleading practices, and many borrowers lack access to sufficient financial education before taking on debt.

Solving the student loan problem requires a comprehensive strategy, not a single solution. Addressing the problem will require a multifaceted approach involving policy reforms, simplifying the student loan programs, and better regulation of college costs and lending practices. Additionally, increasing financial literacy can help students make more informed decisions about borrowing and repayment.

Ultimately, understanding the root causes of the student loan crisis is key to developing effective and sustainable solutions.

The Scope Of The Student Loan Problem

People perceive the growth in student loan debt as a sign of a problem.

Here are the key student loan debt statistics as of the end of last year:

• Total Student Loan Debt: $1.76 Trillion
• Number Of Student Loan Borrowers: 43.2 Million Borrowers
• Total Federal Student Loan Debt: $1.60 Trillion
• Total Private Student Loan Debt: $130 Billion
• Average Federal Student Loan Debt Per Borrower: $37,088
• Median Federal Student Loan Debt Per Borrower: $19,281

Student loans are the second-largest category of household debt, second only to mortgage debt. Student loan debt exceeds outstanding auto loans and credit card debt.

Most college graduates start their careers saddled with tens of thousands of dollars in debt, which can take a decade or longer to repay. The financial burden of student loans can delay major milestones like buying a home, starting a family, or saving for retirement.

The root of the issue may not be the existence of student loans themselves, but rather a college completion problem. The vast majority of college graduates are able to repay their student loans.

Undergraduate students who leave school without finishing a degree are four times more likely to default on their loans than those who graduate. In fact, three-quarters of all defaults are from borrowers who dropped out and did not earn a degree, leaving them with debt but not the credentials needed to boost their earnings and repay it.

Default rates remain stubbornly high, even with income-driven repayment plans, as many borrowers have trouble understanding and navigating the repayment plans.  

Still, student loan debt is less widespread than other forms of debt. Only 21.7% of families have student loan debt, while 45.2% carry credit card balances, 40.9% have mortgages, and 34.7% owe on auto loans.

In recent years, new student loan borrowing has declined, with total annual federal student loan debt dropping from its peak of $106 billion in 2011-2012 to less than $80 billion per year. This trend is partly due to fewer borrowers and a decline in the average loan amount for most types of loans, except for PLUS loans.

Nonetheless, the total student loan balance continues to grow, as new loans are taken out each year while old loans are repaid slowly over decades.

Related: Find more student loan debt statistics here.

Impact Of Student Loan Debt

Despite concerns about the broader economic impact of student loan debt, annual student loan payments represent a small fraction of the U.S. GDP. However, the burden on individual borrowers can be substantial, as student loan payments often take precedence over other financial priorities, like paying off consumer debt or building savings. Although the typical student loan payment is lower than a typical car payment, it can still strain the finances of many households.

The impact of student loan debt is not uniform across all demographics. Low-income, first-generation college students, independent students, and borrowers who are Black, Hispanic or Native American are more likely to borrow larger amounts and face greater difficulty repaying their loans. Female graduates are also more likely to have student loan debt and typically earn less after graduation, making repayment more challenging.

When a borrower struggles to repay their student loans, the student loan debt may persist into old age, with senior citizens far more likely to be in default than younger borrowers. According to the Government Accountability Office (GAO), 37% of borrowers aged 65 and older and 54% of those aged 75 and older are in default. The federal government can even garnish Social Security benefits to repay defaulted loans, which is particularly harsh for seniors who rely on these funds for essentials like food and medicine. This practice is both financially harmful and ethically questionable.

Ultimately, the burden of student loan debt increases financial stress and can harm borrowers’ productivity and overall well-being. Addressing the student loan issue requires a nuanced approach, focusing on college completion, improved loan servicing, better financial education, and targeted policy reforms to alleviate the strain on the most vulnerable borrowers.

Here’s a breakdown of who bears responsibility for the student loan problem.

The Federal Government

Over 92% of all student loans are federal, making the U.S. government the dominant player in the student loan market and a central contributor to the current debt crisis. While the federal loan system was designed to make higher education more accessible, it has also led to a significant increase in student debt, with unintended and damaging consequences for many borrowers.

Federal student loans have several characteristics that resemble predatory lending practices. These include granting loans without adequate assessment of a borrower’s ability to repay, high interest rates and fees, interest capitalization, negative amortization, and inadequate disclosures.

For example, unlike private lenders, the federal government does not evaluate the borrower’s debt-to-income ratio or potential future earnings. This makes it easy for students to borrow large sums, often beyond what they can reasonably expect to repay after graduation.

Federal student loans lack many standard consumer protections that apply to other types of loans. For instance:

• No Statute of Limitations: Federal student loans do not expire, meaning the debt can follow borrowers for life.
• No Defense of Infancy: Even borrowers who took out loans as minors cannot discharge their debt based on age.
• Aggressive Collection Powers: The federal government has powerful tools for debt collection, such as garnishing wages, seizing tax refunds, and even withholding Social Security disability and retirement benefit payments. These measures can be devastating, especially for older borrowers who depend on these benefits for basic needs like food and medication.
• High Collection Charges: When a borrower defaults, as much as a fifth of the student loan payment is siphoned off to cover collection charges before the rest is applied to interest and the student loan balance. This slows the repayment trajectory considerably, sustaining a high level of debt.

The Parent PLUS Loan and Grad PLUS Loan programs allow for virtually unlimited borrowing, with the only restriction being the total cost of attendance minus other financial aid. The credit checks for these loans are minimal, considering only past credit issues without assessing future repayment ability.

"This creates a moral hazard for students and colleges, enabling families to borrow freely without facing immediate consequences, which in turn drives up the amount of debt."

Federal student loan repayment plans are notoriously complex. While income-driven repayment (IDR) options are designed to make student loans more affordable by basing monthly payments on the borrower’s income rather than the amount owed, they are often confusing and difficult to navigate.

Many borrowers struggle to select the best repayment plan for their situation, missing out on opportunities to lower their payments, reduce interest, or qualify for loan forgiveness. The complexity of the system contributes to missed payments, loan delinquency, and defaults.

For example, over 40% of borrowers are enrolled in the Standard repayment plan, which may cost them more than an income-driven repayment plan.

In IDR plans, borrowers may find that their monthly payments are less than the accruing interest, causing the total loan balance to increase — a phenomenon known as negative amortization. While remaining debt may be forgiven after 20 or 25 years, the system essentially provides a retroactive grant for over-borrowing, creating long-term financial instability for many.

Policymakers have prioritized student loans over grants as a way to pay for higher education because loans are less expensive to the government in the short term. Government grants have failed to keep pace with increases in college costs, shifting more of the burden of paying for college to students and their families.

Student loans are the only form of financial aid (if you call it that) that demonstrates any degree of elasticity, causing debt at graduation to grow faster than inflation. 

Colleges And Universities

College costs have skyrocketed, far outpacing inflation and wage growth. Colleges have continued to increase tuition, knowing that students have access to federal loans to cover rising costs.

Tuition and fees at public and private non-profit 4-year colleges have increased more than 20-fold over the past 50 years. Even after adjusting for inflation, college costs have more than tripled, putting higher education increasingly out of reach for many families.

One major factor driving tuition hikes is the feast-famine cycle of state funding for public colleges and universities. When states face budget shortfalls, they often reduce funding for higher education, forcing public colleges to compensate by raising tuition and fees.

This shifts more of the financial burden onto students and families, leading to a surge in student borrowing. As a result, students are increasingly reliant on federal loans to bridge the gap between the cost of attendance and their ability to pay.

In addition to rising costs, some colleges aggressively market their programs to low-income and vulnerable populations, making promises of high-paying jobs that often fail to materialize. These students, lured in by the prospect of upward mobility, frequently end up with substantial debt but no degree. Without the increased earning potential that a college degree typically provides, they struggle to repay their loans, making them much more likely to default.

Students who borrow heavily but do not complete their degrees are at particularly high risk. They face larger debts relative to the value of their education, leading to financial strain and increased likelihood of default. For many borrowers, this can become a lifelong financial burden, affecting their ability to buy a home, start a family, or save for retirement.

Borrowers (And Their Parents)

Many students rely on student loans to cover tuition, fees, and living expenses. However, some borrow more than what they need to pay the college bills, treating student loans as though they are free money. But, student loans have to be repaid, usually with interest.

The complexity of the system is also a problem, because borrowers don't understand how much they owe or how to track their loan balances.

This confusion often results in underestimating the total debt and the cost of repayment. The lack of transparency and clear communication can leave borrowers overwhelmed and ill-prepared to manage their debt.

Some college students borrow more than they can realistically afford to repay, fueled by unrealistic expectations about their future income. They assume that a college degree will automatically lead to high-paying jobs, but this is not always the case.

This overconfidence can lead to financial distress, especially if their actual post-graduation earnings are lower than expected. Additionally, there is a growing element of moral hazard, where some borrowers believe that their loans may eventually be forgiven or that they will not be held fully responsible for repaying the debt.

Many borrowers choose repayment plans that extend the term of the loan, opting for lower monthly payments without fully understanding the implications. While a longer repayment term may reduce the monthly student loan payment, providing short-term relief, it significantly increases the total interest paid over the life of the loan. In many cases, borrowers end up paying far more than the original amount borrowed, extending their financial burden for years or even decades.

One of the most significant issues is the lack of financial literacy among college students. Many do not fully grasp the terms of their loans or the long-term impact of taking on significant debt to pay for college.

Financial counseling, if provided at all, is often insufficient or poorly timed. This lack of education can lead to overborrowing and difficulties in managing debt, setting students up for financial strain after graduation.

Loan Servicers

Loan servicers also contribute to the problem by lacking transparency in their advice to borrowers. Unlike fiduciaries, loan servicers are not required to prioritize the options that are in the borrower's best interests, and this has led to widespread criticism.

Loan servicers have been criticized for providing inaccurate or misleading information, which complicates the already confusing repayment process. Instead of offering options that could reduce the borrower’s long-term debt burden, servicers often fail to provide clear explanations of repayment plans and their eligibility requirements. Many borrowers report difficulties enrolling in income-driven repayment (IDR) plans, often because they receive conflicting advice or encounter bureaucratic hurdles.

For example, we conducted a survey of student loan borrowers and only about two-thirds were able to understand their student loan repayment plan options:

Loan servicers have been accused of steering borrowers to forbearance instead of income-driven repayment plans. A forbearance allows the borrower to temporarily pause payments. However, unpaid interest continues to accrue, causing the loan balance to grow. Borrowers are left with a higher loan balance than they started with, digging them into a deeper hole.

Solutions To The Student Loan Problem

There are several solutions that can reduce reliance on student loan debt and make student loans easier to repay.

Expand Grant Aid For Low-Income Students

The federal government should replace loans with grants in the financial aid packages of financially vulnerable students, such as low-income students and current/former foster youth.

A significant increase in the Pell Grant, potentially doubling or tripling the current average amount, would be a critical first step. This increase should be implemented immediately and indexed to inflation to maintain its value over time.

Eligibility should be tied to students from families earning up to 150% of the federal poverty line, ensuring targeted aid without expanding eligibility unnecessarily.

Simplify The Federal Student Loan System

The current system is overly complex, with multiple types of loans and repayment plans, making it difficult for borrowers to make informed choices.

Consolidating the options into two main repayment plans would streamline the process: standard repayment (level payments with a 10-year term) and income-based repayment (10% of the excess of income over 150% of the poverty line, with the remaining debt forgiven after 20 years of payments).

Income-based repayment is intended to provide a safety net for borrowers whose debt exceeds their income.

Implement Sensible Loan Limits

Student loan borrowing limits should be set based on the borrower’s future earning potential, rather than the cost of attendance alone. 

Aggregate borrowing should be capped at no more than the expected annual post-graduation income, ensuring that borrowers can reasonably expect to repay their loans within a decade. This would help prevent over-borrowing and reduce default risk.

Annual loan limits should be derived from the aggregate limits.

Eliminate the PLUS Loan Program

The PLUS loan program for parents and graduate students allows borrowing beyond reasonable limits, often leading to excessive debt burdens. Eliminating this program and adjusting interest rates on the Federal Direct Stafford Loan to maintain revenue neutrality would help contain borrowing and focus resources on need-based aid.

Enhance Financial Literacy Education

Requiring comprehensive financial literacy training before students take out loans can help ensure they understand the long-term impact of borrowing. Personalized counseling should be provided, tailored to each student’s financial situation and career plans.

Regular, standardized monthly statements should also be sent during college, keeping borrowers informed about their loan status and the growth of their debt. Increasing awareness of the impact of student loan debt will help borrowers exercise restraint.

Standardize Loan Disclosures

Federal student loans should adopt the same disclosure standards as private loans, offering uniform transparency. 

This would provide borrowers with a clearer understanding of the terms, risks, and potential costs associated with their loans, regardless of the lender.

Targeted Loan Forgiveness

Student loan forgiveness should be targeted and needs-based, focusing on borrowers who are truly unable to repay their debt. Priority should be given to:

• Low-income borrowers struggling with repayment.
• Senior Citizens, particularly those whose Social Security benefits are at risk of garnishment.
• Borrowers in essential but low-paying professions, such as public service or teaching in underserved areas.

Improve College Completion Rates

A key factor in student loan default is the failure to reach the finish line. Students who do not graduate are significantly more likely to struggle with loan repayment.

Policies that focus on increasing college retention and completion rates, such as enhanced academic support and advising, can help more students earn a degree and improve their ability to repay loans.

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Let's talk about how to get a student loan. 

Whether you need a Federal student loan, or a private student loan, there are certain things you need to know about how to take out a student loan.

While it would be great to cover all your college costs using a combination of savings, help from family members, scholarships, and your personal income, those funds aren’t always going to cut it. Many college-bound students will need to apply for student loans to cover the gap between the cost of education and their limited resources.

This guide explains how to apply for student loans, and how to select the amount to borrow when you take out the loans.

A good starting point: How To Find The Best Student Loan Rates >>

How to Apply for a Federal Student Loan

For U.S. citizens applying for educational loans in the U.S., the FAFSA application is the starting point for Federal student loans. Here’s how you apply for Federal student loans.

Criteria And Requirements For A Federal Student Loan

If you’re looking to get a federal student loan here’s the criteria:

• Have a valid Social Security number.
• Men must be registered with the selective service. Male students between 18-25 have to register with the selective service to receive loans.
• Be a citizen or eligible noncitizen. Undocumented immigrants are not eligible to receive federal or state funding. Permanent residents with green cards can apply for aid. Immigrants with T-1, battered-immigrant-qualified alien, or refugee status may also be eligible.
• Have a high school diploma or equivalent, such as a GED or certificate from a homeschooling program.
• Enroll in an eligible school. Students at unaccredited schools might not qualify for federal aid. Some schools also choose not to receive federal aid.
• Fill out the Free Application for Federal Student Aid. Any high schooler interested in financial aid needs to fill out the FAFSA, a form that asks for your family’s financial information to determine how much you qualify for. Even those with little to no demonstrated need can be eligible for student loans, so officers encourage everyone to apply. Without the FAFSA, you won’t receive any federal loans, scholarships or grants.
• Be in good standing with federal financial aid. Students can’t be in default on other federal loans or owe money on a federal grant.
• Maintain a 2.0 GPA. Students need to maintain a 2.0 cumulative GPA or risk losing financial aid until their grades improve.
• Be at part-time status or more. Students must be considered part-time to be eligible for loans. Each college determines what part-time and full-time status means, so ask your financial aid officer how many credits you’ll need to take.

Fill Out the FAFSA

Applying for Federal student loans starts by filling out the Free Application for Federal Student Aid (FAFSA). To fill out the application, you’ll need your information and your parents’ information from tax filing from two years ago (for the 2025-2026 school year, you’ll need the 2023 tax returns), plus information about your parents’ assets, your assets, and other financial details.

Once you submit the FAFSA, your school (or schools of choice if you’re still deciding where to attend) will create a student aid report for you. This report will include information about free aid (such as grants, scholarships, and more). It will also show information about work-study options and, of course, student loans.

In the United States, almost all schools use the FAFSA to issue need-based aid to students. Even if you don’t plan to take out student loans, you should be completing the FAFSA. You may learn that you qualify for grants or extra scholarships from your school of choice based on your financial status.

Review the Aid Offer from Your School

About two weeks after you submit the FAFSA to your school, you can expect to receive an aid offer (most financial aid offers usually arrive between January and March). The offer will include information about all sources of aid including:

• Scholarships
• Grants
• Work-study programs
• Subsidized student loans
• Unsubsidized student loans

In general, you want to take all the free money you can get. That means accepting the scholarships and the grants. If you plan to live on campus, you may want to consider taking the work-study offer too.

However, consider work-study as a baseline for your earnings, not a cap. Often, work-study jobs do not pay very well. Side hustles like reffing soccer or basketball, tutoring, waiting tables and tending a bar, or any form of skilled labor typically pay much better.

And, of course, starting a business may be the best way to earn money during college.

The last form of aid will be student loans. These will include subsidized loans, which have a lower interest rate (and interest doesn’t accrue while you’re in school), and unsubsidized loans (where interest starts accruing right away).

Read our full guide to paying for college here >>

Take Out The Appropriate Student Loan Amount

Once you review the offer, you can accept any part of the offer you want. You do not have to take out all the loans. In fact, I recommend borrowing as little as possible to pay for your tuition and other upfront costs. You also have to content with federal student loan borrowing limits, which are very low.

Between savings, frugal living, and working, most undergraduate students can pay for their living expenses without borrowing money.

Student loans aren’t free money. You will have to pay them back. It always makes sense to look for alternatives to borrowing to pay for your education.

It may seem smart to borrow a little extra now, but I advise against that. After college, you may have a salary of $50,000 to $60,000 to start (or even lower in many fields). That sounds like a lot of money, but paying back $50,000+ of student loans on a starter salary is a huge challenge.

Think about your future self, and limit your borrowing today. You might also want to make sure you complete the student loan entrance counseling first so you have a good understanding of the expectations for repayment.

Finally, remember that the collateral for student loans is your future earnings!

How to Apply for Private Student Loans

In some cases, students in the U.S. may want to apply for private student loans rather than Federal student loans. A few reasons to consider private loans include:

• You want to attend a non-accredited educational opportunity (such as a coding bootcamp).
• You plan to take one course at a time (you need at least half-time enrollment to qualify for most Federal programs).
• You’re not a U.S. citizen, so you don’t qualify for Federal loans.
• You have a strong income and a strong credit score, so private lenders may offer better rates than the unsubsidized Federal loans.
• You’re refinancing your existing student loans to a private lender with a substantially lower interest rate.

If one of these situations applies to you, then follow these steps below to apply for private student loans.

Gather All Your Documents

When you apply for any loan, you’ll need documents to prove your income, credit score, and whether you have assets. In general, you’ll need the following:

• Tax returns or W-2 forms from the previous years.
• Employment pay stubs.
• Personal identification information (driver’s license, etc.).
• Bank statements.
• If you’re applying for private loans while attending school, you’ll need information about the cost of attending.
• If you have a cosigner, you’ll need their information too.
• Loan documents for existing student loans (if refinancing).

Compare Rates from a Few Lenders

Once you’ve gathered up the information, start doing some loan shopping. We recommend the lenders on our Best Places To Find Private Student Loans list.

Many lenders allow you to preview rates without having a hard credit pull. You can also “shop” for rates using sites like Credible.

Comparing rates using an aggregation site (like Credible) will help you get a feel for the interest rates and terms available to you.

Apply for Identical Loans from at Least Two Lenders

After unofficially comparing rates, apply for loans from at least two lenders. That way you can pick the best possible interest rate. The underwriting and approval process can take anywhere from a few hours to a few weeks depending on the lender.

Remember to also compare key features like loan repayment terms, loan discharge options (like disability discharge), and more.

Take Out The Best Student Loan Offer

When you have a few loan offers in hand, compare them to see which loan is the best for you. Then sign the loan documents and move forward with your education or paying off your loans.

If you have a cosigner, you may also want to get a term life insurance policy to protect your cosigner should anything happen to you. A term life insurance policy for the loan balance (when you're a young adult) can be very inexpensive.

Remember, some private student loans require immediate payments, so make sure you double-check your lender and their repayment plans before you commit.

Best Student Loans For Grad School

Once you get to looking at student loans, there's another order of operations to follow. You should start with Direct Student Loans, the move to Grad PLUS Loans, the consider private loans.