Student Loan Debt 2025: Over the past three decades, the cost of college in the United States has grown significantly. Tuition at public four-year colleges, which was $4,160 in 1994, has risen to $10,740 in 2024.
Private nonprofit colleges have seen an even steeper rise, from $19,360 to $38,070, after adjusting for inflation. This sharp increase in college costs has led more students to rely on loans and financial aid to fund their education.
Student Loan Debt 2025
Currently, the total student loan debt in the U.S. stands at approximately $1.75 trillion, which includes both federal and private loans. According to Forbes, on average, each borrower owes about $28,950.
Federal loans make up about 92% of this debt, with the remaining 8% coming from private loans. More than half of students attending public four-year colleges (55%) and private nonprofit colleges (57%) rely on student loans to help cover the cost of their education.
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A 2024 study by NerdWallet found that while 57% of Americans still believe a four-year degree holds value, 30% of those who borrowed money to fund their education regret taking out student loans. As the cost of higher education continues to rise, many Americans are questioning whether it is worth the financial burden.
Here is the list of States with the Most and Least Student Debt
| Highest debt states | Lowest debt states | ||
|---|---|---|---|
|
New Hampshire
|
$39,928
|
Utah
|
$18,344
|
|
Delaware
|
$39,705
|
New Mexico
|
$20,868
|
|
Pennsylvania
|
$39,375
|
California
|
$21,125
|
|
Rhode Island
|
$36,791
|
Nevada
|
$21,357
|
|
Connecticut
|
$35,853
|
Wyoming
|
$23,510
|
Source: The Institute for College Access and Success
Average Student Loan Debt in 2025 by State
The average federal student loan debt for borrowers across the United States is $35,210. However, some states and territories have higher average balances than others. The five states with the highest average student loan balances are:
- Washington, D.C. – $54,708.52
- Maryland – $42,350.91
- Georgia – $40,268.87
- Virginia – $38,251.37
- Florida – $37,709.72
| State/territory | Average loan balance |
|---|---|
|
Alabama
|
$35,848.13
|
|
Alaska
|
$34,055.73
|
|
Arizona
|
$34,693.64
|
|
Arkansas
|
$32,188.84
|
|
California
|
$36,755.80
|
|
Colorado
|
$35,932.11
|
|
Connecticut
|
$34,713.76
|
|
Delaware
|
$36,135.11
|
|
District of Columbia
|
$54,708.52
|
|
Florida
|
$37,709.72
|
|
Georgia
|
$40,268.87
|
|
Hawaii
|
$36,238
|
|
Idaho
|
$32,228
|
|
Illinois
|
$37,233
|
|
Indiana
|
$31,483
|
|
Iowa
|
$29,350
|
|
Kansas
|
$31,502
|
|
Kentucky
|
$31,685.24
|
|
Louisiana
|
$33,376.54
|
|
Maine
|
$32,679.74
|
|
Maryland
|
$42,350.91
|
|
Massachusetts
|
$33,710.38
|
|
Michigan
|
$35,253.08
|
|
Minnesota
|
$32,513.98
|
|
Mississippi
|
$35,381.31
|
|
Missouri
|
$34,412.96
|
|
Montana
|
$32,414.91
|
|
Nebraska
|
$30,978.93
|
|
Nevada
|
$33,663.96
|
|
New Hampshire
|
$33,119.66
|
|
New Jersey
|
$35,202.31
|
|
New Mexico
|
$33,550.79
|
|
New York
|
$37,196.72
|
|
North Carolina
|
$36,632.59
|
|
North Dakota
|
$27,874.56
|
|
Ohio
|
$33,490.59
|
|
Oklahoma
|
$31,011.14
|
|
Oregon
|
$36,230.49
|
|
Other
|
$44,150.11
|
|
Pennsylvania
|
$34,535.56
|
|
Puerto Rico
|
$29,480.74
|
|
Rhode Island
|
$31,779.66
|
|
South Carolina
|
$36,729.04
|
|
South Dakota
|
$29,798.42
|
|
Tennessee
|
$35,431.18
|
|
Texas
|
$32,285.33
|
|
Utah
|
$31,861.93
|
|
Vermont
|
$37,037.04
|
|
Virginia
|
$38,251.37
|
|
Washington
|
$35,223.26
|
|
West Virginia
|
$31,121.28
|
|
Wisconsin
|
$30,777.92
|
|
Wyoming
|
$30,360.53
|
|
Source: Direct Portfolio Data by Location Q1 2023
|
Student Loan Repayment
Since the onset of the Covid-19 pandemic, federal student loan payments have been temporarily paused. The payments have been on hold since March 2020, and most federal loans are currently in forbearance. However, in October 2023, nearly 37 million student loan borrowers will have to resume making monthly payments.
As per Federal Student Aid, only 2.7 million borrowers had their federal loans in forbearance in 2020. By the end of 2021, that number had increased significantly to 24 million borrowers. The forbearance period was initially expected to end in May 2022, but payments have remained paused due to ongoing circumstances.
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Here’s a breakdown of the student loan debt by status:
| Status | Amount of debt | Number of borrowers |
|---|---|---|
|
In-school
|
$118 billion
|
6.4 million
|
|
Grace period
|
$41 billion
|
1.6 million
|
|
Repayment
|
$16 billion
|
0.5 million
|
|
Deferment
|
$113 billion
|
3.1 million
|
|
Forbearance
|
$968 billion
|
24 million
|
|
Default
|
$112 billion
|
5.1 million
|
The forbearance period will end, and borrowers are expected to resume payments, making it important to plan ahead for the return of loan obligations.
Debt by Degree
The amount of student loan debt students accumulate depends on the type of degree they pursue. Graduates with a bachelor’s degree typically owe around $29,300. However, those who pursue graduate or professional degrees face much higher debts.
Graduate students usually owe $77,300, while law school graduates have an average debt of $132,740. Medical school students and dental students face even higher amounts, with debts averaging $212,341 and $296,500, respectively.
Certain fields of study often come with substantial debt due to the cost of specialized education. For example, graduates from nursing, pharmacy, and veterinary schools can owe between $40,000 and $296,000, depending on the program.
Impact of Student Loans Across Age Groups
Student loan debt also varies by age group. Borrowers aged 50 to 61 carry the highest average debt, at $46,790. On the other hand, younger borrowers under 24 owe an average of $14,162, while those aged 25 to 34 have debts of around $33,150. Student loan debt can continue to affect individuals well into their retirement years, as many borrowers struggle to pay off their loans.
| Age group | Amount owed | Number of borrowers |
|---|---|---|
|
24 or younger
|
$110 billion
|
7.6 million
|
|
25 to 34
|
$500 billion
|
14.9 million
|
|
35 to 49
|
$622 billion
|
14.4 million
|
|
50 to 61
|
$282 billion
|
6.4 million
|
|
62 and older
|
$98 billion
|
2.4 million
|
Gender Differences in Student Loan Debt
Women tend to borrow slightly more than men. On average, women owe $31,276, while men owe $29,270. This difference in borrowing is an important factor to consider, as women are more likely to hold student loan debt compared to men. Approximately 47% of women carry student loan debt, compared to 40% of men.
Racial Disparities in Student Loan Debt
Racial disparities in student loan debt are a significant concern. According to recent data, 50% of Black adults have student loan debt, with an average balance of $9,800. In comparison, 44% of white adults carry student loan debt, with an average balance of $8,700, and 37% of Hispanic/Latino adults hold student loan debt, with an average balance of $7,000.
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According to Centre for economics and policy research, Among Black women, the student loan debt burden is even more severe, as they graduate with 43% more undergraduate debt and nearly double the graduate school debt compared to white women.
The Financial Burden of Parent PLUS Loans
Many parents borrow money to help fund their children’s education through Parent PLUS loans. On average, parents owe $30,639 in these loans. This added financial burden can delay parents’ financial goals, such as saving for retirement or purchasing a home.
