10+ Hidden Student Loan Debt Facts 2022

Looking for top student loan debt facts, you must know? Keep reading!

A student loan is a real-life challenge that many of us are trying to get rid of as soon as possible.

As you all know, a student loan is totally out of control in the United States these days, and the increase has come as historically high shares of young adults going to college and the constantly increasing cost of higher education. 

On average, Americans owe about $1.5 trillion in student loans, which is 2x higher than what they owed a decade earlier.

While investing in a college education is inevitable, the life-long effects of debt can’t be overlooked.

A huge percentage of students are entering the workforce with prodigious amounts of student debt, while older generations are still struggling to pay off their student debts year after education.

In this article, we’ll explore some key student loan debt facts in the United States that most of you may not know about, based on the data from the Federal Reserve and the U.s Department of Education. Let’s get started! 

Top-student-loan-debt-facts

A Student loan is the Second-Largest Source of Household Debt 

A Student loan debt is one of the fastest-growing sources of household debts, surpassing both credit card and auto loan debts in 2010.

Total student loan debt is the second-largest source of household debts, consistently outpacing other non-mortgage household debts. 

Read: Average Student Loan Debt?

Read: What Is Debt Financing? 

Read: 10 Best Debt Relief Companies For Credit Card Debt

Student Loan Debt Has Doubled Since 2008

The student debt was around $600 billion in 2008, which has become doubled in 2020, totaling nearly $1.6 trillion.

The growth in debt has increased significantly with an increase in the number of college-going students.

As per the Department of Education, the percentage of undergraduates has risen by 2% and by 12% for the graduate level.

Student Loan Debts in America have Exceeded the Trillion-Dollar Mark 

The statistic of the federal reserve Q3 2018 shows that the student loan debt in the USA has hit a record of 1.5 trillion dollars (about $4,600 per person in the US), followed by motor vehicle loans is 1.1 trillion dollars, and credit card debt which is 1 trillion dollars.

A decade earlier, car payments were the biggest monthly issue, but now student loan debt is a permanent part of a monthly expense surpassing the vehicle expense.

Read: What Is Debt Relief? – Everything You Need To Know

A Small Fraction of borrowers owe the Most

One of the most mind-blowing facts is that a third of all outstanding student debt is owed by 6% of the borrowers.

Six percent of the borrowers owe more than $100,000 in debt, while 2% owe more than %200,000.

The six percent owe 1/3 of the outstanding $1.5 trillion debt. On the other hand, 18% of borrowers owe less than $5,000 loan debt, and they jointly owe 1% of debt outstanding, 

Adults between 25-34 of Ages have More Student Debt 

Student debt is more common among the age group 25–34-year-old. According to data from The Washington Post, a third of adults in this age group have federal student loans, followed by 18-24- and 35–49-year-olds.

In this age range, people face financial commitments like first-time mortgages, building a family, or even building a family or even adding graduate student loans into higher education debt, which makes it hard to make monthly payments. 

Women Have More Student Loan Debt

It is hard to believe, but women owe more student loans than men. In 2019, women owed around $929 billion (about $2,900 per person in the US) in student loans.

Women have a higher graduation rate than men, which is why they are more in student loan debt. Also, despite having higher education, women have fewer earnings than males. 

Most Student Debt is Owed to the Federal Government 

A few decades ago, student loans were provided by private lenders but subsidized and backed by the federal government, but today, around 92% of all the outstanding student loan debt is owed to the federal government, while the remaining 8% is lent by the private financial institutions.

Many Students Borrow to Cover the Living Cost

A vast majority of students take student loans to cover the cost of living.

The student borrowing patterns among those for whom financial aid covers the whole tuition bill are similar to those who have to pay the tuition.

The borrowing percentage of students with no net tuition was $24,000, while those who pay net tuition borrowed around $28,000.

Read: Debt Relief Programs – Understand Your Options Available With Their Cons


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