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Updated December 2, 2022
A Snapshot of Federal Student Loan Debt
After years of increasing, growth in counts of federal
46% of Direct Loan program dollars disbursed went to
student loan borrowers, average annual amounts borrowed,
graduate students, up from 40% in AY2017-2018, and 34%
and average cumulative debt owed appears to be
in AY2011-2012.
moderating somewhat. Overall, though, more student loan
dollars continue to be disbursed than are repaid, resulting in
Cumulative Amounts Owed
an expanding federal student loan portfolio. Nearly 43
Figure 2 shows estimates of average cumulative debt for
million individuals—one in six adult Americans—have
program completers by degree type since AY2003-2004;
federal student loan debt, and the federal student loan
detailed estimates are described below. Many students
portfolio now exceeds $1.6 trillion.
borrow over a period of several years and, while in school,
interest may accrue on their loans.
Annual Borrowing
Title IV of the Higher Education Act of 1965 (HEA)
Figure 2. Average Cumulative Amounts Owed on
authorizes the primary federal student loan programs. U.S.
HEA Title IV Loans at Program Completion
Department of Education (ED) data show that from
(Estimates for AY2003-2004 through AY2017-2018)
academic year (AY) 1995-1996 to AY2011-2012, average
annual amounts of Title IV loans undergraduate students
borrowed increased from $3,800 to $6,500 (71%), while
counts of undergraduate borrowers increased from 4.1
million to nearly 9.3 million (124%). (See Figure 1.) From
AY2011-2012 to AY2017-2018, average amounts annually
borrowed increased to $6,700 (3%), while counts of
undergraduate borrowers decreased to 6.4 million (-31%).
Figure 1. HEA Title IV Loans: Average Annual
Amounts Borrowed and Numbers of Borrowers
(Estimates for AY1995-1996 through AY2017-2018)
Source: ED, NPSAS: 2004, 2008, 2012, 2016, and 2018.
Notes: Nominal dollars. Estimates of total amount owed (including
capitalized interest) on Title IV loans for program completers. (Data
series begins with AY2003-2004; identification in AY2017-2018 of
program completers is not directly comparable to prior years.)
Estimates for graduate degree programs also include undergraduate
borrowing. Excludes Parent PLUS Loans. For 50 states and DC only.
Undergraduate certificate. In AY2003-2004, 50%
(207,300) of undergraduate certificate recipients had Title
IV loans and owed an average of $6,300. In AY2017-2018,
49% (248,700) of certificate recipients had Title IV loans
Source: ED, National Postsecondary Student Aid Studies (NPSAS):
and owed an average of $14,800.
1996, 2000, 2004, 2008, 2012, 2016, and 2018.
Notes: Nominal dollars. Excludes Parent PLUS Loans. For 50 states
Associate’s degree. In AY2003-2004, 31% (329,700) of
and DC only. Data series begins with AY1995-1996.
students who earned an associate degree had Title IV loans
and owed an average of $9,700. In AY2017-2018, 33%
For graduate students, from AY1995-1996 to AY2011-
(259,100) of associate’s degree recipients had Title IV
2012, average amounts annually borrowed increased from
loans and owed an average of $20,900.
$10,500 to $21,200 (102%), while counts of graduate
student borrowers increased from 688,000 to nearly 1.6
Bachelor’s degree. In AY2003-2004, 58% (980,000) of
million (132%). Increased borrowing was due in part to
students who earned a bachelor’s degree had Title IV loans
graduate students becoming eligible for PLUS Loans in
and owed an average of $16,900. In AY2017-2018, 53%
AY2007-2008. From AY2011-2012 to AY2017-2018,
(1.0 million) of students earning a bachelor’s degree had
average amounts annually borrowed increased to $24,900
Title IV loans and owed an average of $27,500.
(17%) and counts of borrowers fell to 1.4 million (-10%).
Master’s degree. In AY2003-2004, 55% (323,800) of
Graduate student borrowing comprises an increasing share
students who earned a master’s degree had Title IV loans
of annual aggregate loan disbursements. In AY2021-2022,
and owed an average cumulative total of $32,700. In
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A Snapshot of Federal Student Loan Debt
AY2017-2018, 46% (405,800) of master’s degree recipients
Loan Repayment Terms and Conditions
had Title IV loans and owed an average of $71,800.
Borrowers may choose from among an array of options
when structuring loan repayment. A standard 10-year
Doctor’s degree (research/scholarship). In AY2003-2004,
repayment plan requires 120 equal payments of principal
44% (40,500) students who earned a doctoral degree in
and interest spread over 10 years. Income-driven repayment
research and scholarship fields (e.g., Ph.D.) had Title IV
(IDR) plans cap monthly payment amounts at a share of
loans and owed an average of $53,900. In AY2017-2018,
discretionary income (e.g., 10%, 15%), extend the
33% (27,700) had loans and owed an average of $112,400.
repayment period to 20 or 25 years, and forgive any unpaid
principal and interest that remains after that period. Under
Doctor’s degree (professional practice). In AY2003-
IDR plans, a borrower’s required monthly payment can be
2004, 81% (75,400) of students who earned a professional
less than the interest that accrues, which may result in an
practice doctoral degree (e.g., M.D., J.D.) had Title IV
increasing outstanding loan balance over time. Other
loans and owed an average of $74,500. In AY2017-2018,
repayment plans are also available to borrowers. Borrowers
69% (88,800) had loans and owed an average of $185,100.
may also pay off their existing loans with a new Direct
Consolidation Loan that, depending on the loan balance,
Student Loan Debt in the Aggregate
may have a new repayment period of up to 30 years.
Over the past 15 years, the federal portfolio of outstanding
Title IV loans increased from $516 billion in loans made on
Should alternatives to the current mix of repayment plans
behalf of 28.3 million students, to $1.6 trillion in loans
be offered? If so, how should various repayment plan
made on behalf of 42.8 million students. (See Figure 3.)
alternatives balance competing aims such as keeping
monthly payments affordable, facilitating the payment of
Figure 3. HEA Title IV Student Loan Portfolio
principal and interest, and limiting costs to the government?
(Outstanding principal and interest, FY2007 to FY2022)
To what extent should repayment plans account for
differences between undergraduate and graduate students or
differences in borrowers’ economic circumstances?
Loan Forgiveness and Cancellation
An array of loan forgiveness and cancellation benefits exist;
however, rules for determining borrower eligibility vary
considerably. What is the optimal balance between targeted
and widely available loan forgiveness? How should
concerns about the potential advantages of providing debt
relief be balanced against concerns about its cost to the
government? How does the prospect of relief from the
obligation to repay some portion of their debts influence
students’ postsecondary education and career choices and
the amount of debt they are willing to incur?
Source: ED, National Student Loan Data System (NSLDS).
Notes: Nominal dollars. Data available beginning in 2007. The loan
Debt and Societal Well-Being
recipient is the student on whose behalf a loan to a student or a
How do the benefits of an education financed with federal
parent is made.
student loans and the burden of loan repayment interact and
affect borrowers’ opportunities, well-being, and choices
Federal Student Loan Debt Policy Issues
concerning careers, family formation, home ownership,
Congress could consider a number of policy issues related
savings, and wealth accumulation? How should the
to student loan debt in the context of its oversight of the
responsibility for funding or financing the costs of a college
federal student loan programs, as part of reauthorization of
education be distributed among the individual, the higher
the HEA, or as stand-alone legislation.
education sector, and different levels of government?
Loan Limits and Availability
Sustainability of the Federal Loan Portfolio
Under current law, annual and aggregate loan limits for
The federal student loan portfolio continues to grow as new
Direct Subsidized Loans and Direct Unsubsidized Loans
loans are disbursed at a faster rate than existing loans are
constrain the amounts that undergraduate and graduate
repaid. What are the long-term implications of the federal
students may borrow. However, graduate students and the
government overseeing and administering a growing and
parents of undergraduate dependent students may use
increasingly complex loan portfolio? How does federal
Direct PLUS Loans to borrow up to a student’s annual cost
administration of student loan programs impact borrowers’
of attendance (COA), less other aid received. There is no
ability to realize existing benefits and other forms of relief?
specific limit on aggregate PLUS Loan borrowing.
David P. Smole, Coordinator of Research Planning
To what extent should annual and aggregate limits cap the
Rita R. Zota, Analyst in Education Policy
amount of student loan debt individuals may incur? Should
students and their families be able to use federal student
IF10158
loans to finance any amounts that, based on federal student
aid rules, they are expected to contribute from their own
income or assets toward college expenses?
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A Snapshot of Federal Student Loan Debt
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