Student loan debt is now the second highest consumer debt category in the United States, surpassed only by mortgages. It’s no wonder that many people are struggling to pay back their loans on time – according to data from The Student Loan Report, students who have student loans owe an average of $35,000.
The National average of student loan debt
In the United States, the average student loan debt amount is $30,000. This is a significant increase from when the average student loan debt amount was only $17,500 back in 2007. The average student loan debt amounts vary significantly depending on your state of residence. In California, for example, the average student loan debt amount is $41,000.
There are a number of reasons why the average student loan debt amount has increased so much in recent years. One reason is that more students are taking out loans to pursue higher education. Another reason is that the interest rates on student loans have been relatively low compared to other types of loans.
Student loan debt can have a significant impact on a person’s ability to get ahead in life. It can lead to decreased earnings potential over time and can be a barrier to achieving financial independence. If you are struggling with student loan debt, it may be helpful to speak with a financial advisor about options available to you.
Average amount of student loan debt for different types of students
Student loan debt is an increasing problem across the board, but the amount of debt incurred differs depending on a student’s education and career path.
In 2016, The Student Loan Report found that the average amount of student loan debt for graduates with a bachelor’s degree was $37,172. However, the amount of debt incurred differed significantly depending on a student’s field of study. For instance, students in the humanities and social sciences had the highest average amount of student loan debt at $46,555. Meanwhile, students in engineering and technology fields had the lowest average amount of student loan debt at $29,450.
The report also looked at average debt levels by type of college attended. The average amount of student loan debt for undergraduate students at four-year colleges was $35,952. However, this figure increased to $47,172 for graduate students at these same colleges. Interestingly, private colleges had an average amount of student loan debt that was higher than those at public universities ($40,452 versus $35,004).
The report also looked at types of students who incur more or less student loan debt. First-time college students tended to have more debt than those who had attended college
What can young adults do to reduce their student loan debt?
Student loan debt is a large problem for young adults, and there are many things that can be done to reduce the amount of debt that is accrued. Here are five tips to help reduce student loan debt:
1. Pursue scholarships and grants. Many young adults don’t realize that scholarships and grants are available to them, and they should look for these opportunities when searching for financial aid packages. There are also many online resources that list scholarships and grants available.
2. Consider a consolidation loan. A consolidation loan is a good option if you have multiple student loans, as it will combine them into one loan with a lower interest rate. This will save you money in the long run, and you will also be able to get a lower interest rate than if you had each loan from a different lender.
3. Live below your means. One of the best ways to reduce your student loan debt is to live below your means. When you’re living within your means, you’re not spending money on things that you can’t afford, and this includes student loans. Try to make cuts in other areas of your life in order to make ends meet and pay off your student loans quicker.
4. Pay off your debts as quickly as
Student Loan Debt by State
The average student loan debt in the United States is $37,172, and varies by state.
The states with the highest student loan debt averages are:
1. New York – $48,584
2. California – $41,992
3. Florida – $36,012
4. Illinois – $34,708
5. Texas – $32,792
6. Ohio – $31,752
7. Pennsylvania – $30,944
8. Maryland – $30,588
9. Michigan – $29,680
10. Connecticut – $28,224
Average Amount of Student Loan Debt per Person
How Much Student Loan Debt In The Us?
According to the 2016 Educational Debt Report by the Institute for College Access and Success (ICAS), the average amount of student loan debt per person in the United States is $30,500. This number has increased by almost $5,000 since 2013. Despite this increase in debt, however, borrowers still have a lower level of debt than ever before. In 2012, the average amount of student loan debt per person was $33,000.
The primary reason for this decrease in debt is due to the amount of government assistance available to students. In 2004, there were only about 9 million students borrowing money from private lenders. However, as of 2016 there are over 42 million borrowers in the country. This dramatic increase in borrowers has led to an increase in private loans as well as government loans.
Despite these numbers, it is important to keep in mind that not everyone is able to pay off their student loan debt quickly and easily. According to a study by Student Loan Hero, almost half of all borrowers who took out a student loan between 2007 and 2015 will not be able to pay it back within 10 years. Additionally, about 20% of borrowers who took out
How Student Loans Affect Your Credit Score
Student loans can have a significant impact on your credit score, depending on the type of loan and how much you owe.
File Photo by Dennis Van Tine/UPI | License Photo
If you have federal student loans, your credit history will be reported to lenders when you apply for a mortgage, car loan, or other type of credit. Lenders can use your student loans to determine your eligibility for a loan and how much they’re willing to offer you.
If you have private student loans, your lender will likely not report your student loans to credit agencies. However, private lenders are often more aggressive about lending to people with low credit scores, so it’s important to keep good debt management practices in place if you have student loans.
In either case, making timely payments on your student loans is key to maintaining a good credit score. If you have questions about how student loans affect your credit score, speak with a financial advisor.
Repayment Options for Student Loan Debt
There are a few different ways to repay student loan debt. Here are the most common repayment options and their corresponding costs:
1) Repayment Plan 1: borrowers must pay back their loans in full each month, with no grace period. This plan has the highest monthly cost, at $335.
2) Repayment Plan 2: borrowers have a few months of grace after they graduate, during which time they can pay back their loans at a reduced rate. This plan has the second-highest monthly cost, at $278.
3) Repayment Plan 3: borrowers have 10 years to repay their loans in full, with interest only payments starting after 5 years. This plan has the lowest monthly cost, at $116.
4) Income-driven repayment plans: these plans adjust the amount borrowers pay based on how much income they make each month. These plans have the lowest total cost over the life of the loan, at $0 per month.
Each repayment option has its own set of benefits and drawbacks. The most important thing to keep in mind is what’s best for you and your financial situation.
The average amount of student loan debt in the United States is $37,172. This number has been on the rise for a few years now and it looks like it is only going to continue doing so. With interest rates at an all-time high, it is no wonder so many people are struggling with student loan debt. However, if you are able to get a good education and manage your finances well, you can actually overcome this kind of debt. So don’t be discouraged – there are ways to deal with student loan debt and find relief from the weight that it has placed on so many shoulders.