Student Loan Debt Today
A look at the numbers behind one of the most pressing issues many Americans face
Student debt has made lots of headlines recently due to its astronomical growth: Student loan debt in the U.S. now totals $1.5 trillion.1 To put that number in perspective, $1.5 trillion is enough money to cover the costs of 24 million American households for a whole year.2
If you’re struggling with your loan payments or looking for ways to make repayment easier, you have options.
- The government offers several income-driven repayment plans designed to help low-income borrowers avoid defaulting on their loans.
- You may also benefit from consolidating your loans. This process combines multiple monthly bills into one, potentially making it easier to stay on top of repayments. Note that consolidating can result in losing any credit you’ve earned toward forgiveness programs like Public Service Loan Forgiveness.
- If you feel your interest rate is simply too high, you can also try refinancing your loans through a private bank. If you do so, note that you’ll lose the protections that come with federal loans.
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1 Brookings, Yilla, Kadija and Wessel, David, “Five facts about student loans,” November 2019.
2 U.S. Census Bureau, Guzman, Gloria, “Household Income: 2018,” September 2019.
3 Pew Research Center, Cilluffo, Anthony, “Five Facts about Student Loans,” August 2019.
4 U.S. Department of Education, “Federal Student Loan Portfolio,” December 2019.
5 Pew Research Center, Cilluffo, Anthony, “Five Facts about Student Loans,” August 2019.
6 Federal Reserve Bank of New York, “Who Is More Likely to Default on Student Loans?” November 2017.