Here's the Average Student Loan Debt by Age
More than half of the students in America go into debt to pay for school and this is how much they owe based on age, according to CNBC.
Average tuition prices are around $22,000 and are showing no signs of slowing down. Lawmakers have become aware of the issue and many have run on the agenda of debt relief. President-elect Joe Biden has been vocal about his plans to alleviate some of the pressure on borrowers.
US student loan debt is currently at $1.7 trillion, according to Federal Reserve data. Individuals in their mid-30s had the largest amount of debt. Much of this debt is from Parent PLUS loans taken out by parents sending their kids to college.
Here is the average amount of student loan debt by age, according to the U.S. Department of Education’s Q4 2020 data:
- 24 and younger: $14,807.69
- 25 to 34: $33,817.56
- 35 to 49: $42,373.23
- 50 to 61: $42,290.32
- 62 and older: $37,739.13
Federal student loans are typically calculated using a 10-year repayment plan. There is an option to choose an income-driven repayment plan which allows individuals to make smaller payments over 20 years. In 2019, a study conducted by New York Life asked 2,200 individuals about their financial mistakes. The average amount of time this pool of respondents reported was 18.5 years to pay off student loans.