Average Student Loan Debt by Year

Report Highlights. Currently, student loan debt at graduation is an estimated $37,650. Despite the rising cost of tuition, graduates who have been out of school for years often owe more than new graduates due to interest rates.

  • The average total student loan debt-to-income ratio (DTI) for a new graduate is 63%
  • The average monthly student loan payment for the Class of 2020 is an estimated $289
  • After adjusting for inflation, the Class of 2020 graduated with the highest amount of debt, with an average balance of $43,140 in September 2023 dollars.
  • Before adjusting for inflation, the average student loan debt at graduation has increased 106% since 2007; after adjusting for inflation, the average debt increased 41%.

Related reports include Student Loan Debt Statistics | Average Student Loan Debt | Average Time to Repay Student Loans | Average Cost of College | How Do People Pay for College? | Student Loan Refinancing

Student Loan Debt (per Student) at Graduation by Year
Graduation Year Debt per Student Debt in September 2023 Dollars
2023

$37,650*

$37,650

2022

$37,570

$38,970

2021

$37,110

$40,970

2020

$36,510

$43,140

2019

$35,210

$42,170

2018

$33,550

$41,100

2017

$32,090

$40,060

2016

$30,550

$38,940

2015

$29,140

$37,920

2014

$27,760

$36,390

2013

$26,270

$34,690

2012

$24,760

$33,190

2011

$23,240

$31,690

2010

$21,860

$30,700

2009

$20,470

$29,170

2008

$19,300

$28,250

2007

$18,230

$26,720

*Based on Q3 2023 data

Student Loan Debt at Graduation

Among graduates with bachelor’s degrees, debt may range from a few hundred to tens of thousands of dollars. The average public university graduate typically owes much less than the average graduate of a private, for-profit institution.

  • $33,710 is the mean average student loan debt for the past decade.
  • $39,730 is the mean average student loan debt for the past decade when adjusted for inflation.
  • The average starting salary of bachelor’s degree holders over the past 10 years is $52,390. 
  • Even when adjusted for inflation, the average debt at graduation has risen significantly over recent decades.

When estimating current debt by graduation year, you may use our report on Average Student Debt by Age as a rough guide. A significant portion of students, however, do not graduate at the traditional age of 22.

Average Debt-to-Income by Graduation Year

Another method to determine current debt by graduation year is to compare the average debt at graduation with the average starting salary for graduates in that year. Note that the borrower’s salary is presumably lower than at the start of repayment than it would be 10 years into repayment, and interest rates change over time.

  • The Class of 2018 had the highest DTI at 66%. 
  • In 2008, bachelor’s degree holders had the lowest DTI at 39%. 
  • A healthy DTI is considered to be roughly 36%, as stated by the Consumer Financial Protection Bureau.  
  • Over 16% of student borrowers will have a DTI of at least 20% from solely student loans after graduating from college.
Debt-to-Income Ratio Among Bachelor’s Degree Earners at Graduation
Graduation Year Average Starting Salary DTI Among New Grads
2021

$58,860

63%

2020

$56,580

65%

2019

$54,490

65%

2018

$51,030

66%

2017

$50,250

64%

2016

$49,530

62%

2015

$50,220

58%

2014

$48,130

58%

2013

$45,330

58%

2012

$44,260

56%

2011

$51,170

45%

2010

$48,290

45%

2009

$48,630

42%

2008

$49,220

39%

2007

$45,730

40%

Overall Average Debt-to-Income by Year

The average total DTI among bachelor’s degree holders increases in most years. Note that, unlike starting salaries, these data are from the U.S. Bureau of Labor Statistics (as opposed to the National Association of Colleges and Employers).

  • The average DTI among bachelor’s degree holders increased by 37.6% between 2007 and 2023. 
  • Also between 2007 and 2023, the average income among bachelor’s degree holders increased 50.1%. 
  • Average student debt increases 113% faster than average income.
  • Most student loan lenders will not accept applicants with a monthly total DTI higher than 50%.
  • Lenders can use income-driven-plan repayments to qualify buyers as long as it shows up on their credit report. 
  • If there is no information on your credit report, the lenders might use up to 1% of your remaining loan balance to calculate monthly payments, which are based on a 20-25 year amortization schedule.
Student Loan Debt vs. Income By Year
Year Average Monthly Student Loan Repayment Average Income
for All Bachelor’s Degree Holders
2020 $289

$67,650

2019 $318

$64,860

2018 $282

$62,310

2017 $247

$61,130

2016 $280

$60,100

2015 $302

$59,150

2014 $259

$57,190

2013 $230

$57,560

2012 $225

$55,420

2011 $299

$54,800

2010 $399

$53,940

2009 $413

$53,310

2008 $424

$52,610

2007 $367

$51,440

Line Graph: Average Federal Student Loan Debt Adjusted for Inflation. From $34,690 in 2013 to $37,650 in 2023; peak $43,140 in 2020

Average Student Loan Debt by Year

There is little data regarding average private student loan debt, but data about federal debt is available for certain time periods.

  • The average federal debt per student borrower is $37,650. 
  • Including private student loan debt, the highest possible average debt balance is $40,670. 
  • A typical starting salary for bachelor’s degree holders is approximately $58k per year.
  • It takes the average student borrower up to 20 years to pay off their loans.
Federal Student Loan Debt Per Indebted Borrower
Year Percentage of Enrolled
Students Who Borrowed
Average Debt
Per Borrower
2021

38%

$37,110

2020

41%

$36,510

2019

43%

$35,210

2018

44%

$33,550

2017

46%

$32,090

2016

46%

$30,550

2015

47%

$29,140

2014

47%

$27,760

2013

49%

$26,270

2012

51%

$24,760

2011

50%

$23,240

2010

51%

$21,860

2009

47%

$20,470

2008

46%

$19,300

2007

44%

$18,230

Total Student Loan Debt by Year

The national student loan balance, including federal and private debt, has risen steadily over the past 50 years and is currently approaching $1.7 trillion. 

  • The national student debt surpassed $1.5 trillion in 2019. 
  • The growing total reflects growth in the average debt per borrower as well as the borrowing rate among the nationwide student population. 
  • Since 2018, the national total student loan debt balance has grown by 13.5%. 
  • The total student loan debt grew at an annual rate of 1.5%; meanwhile, the cost of college increased at an annual rate of 3.8%, and the value of the US dollar has grew at a rate of 12% in 2022.

Analysis: Student Loans May Fuel the Cycle of Poverty

The average 1996 college graduate left school with $12,750 ($24,740 in September 2023 dollars) in student loan debt. Just over ten years later, 1996 graduates with debt remaining owed an average of $16,500, with a median debt of $17,200.

Theoretically, the average debt per borrower in a single graduating class should diminish with each passing year. In 10 years, however, 1996 graduates who were still in debt had an average balance of 1.28% lower than it had been the previous decade.

Further, a median balance of $17,200 indicates that the largest outstanding balances among 1996 graduates must not total much more than $34,400 – or 9.45% less than the average 2023 graduate’s estimated student loan debt.

Finally, the consistency of the average outstanding balance indicates that, over the long term, 1996 graduates are often able to make payments that go toward interest but not toward the loan’s principal. In other words, their debt rarely shrinks despite years of repayment.

All of this indicates a long-term struggle among borrowers to make payments toward their loan’s principal. In the long run, this means they pay more for their loans. Thus, student loan borrowers who lack the finances to pay off their loans remain in debt.

Sources

  1. U.S. Department of Education, Federal Student Loan Portfolio
  2. Bureau of Labor Statistics, Data Retrieval
  3. National Association of Colleges and Employers, Job Market
  4. BLS, CPI Inflation Calculator
  5. Best Colleges, Student Loan Debt by Year
  6. The College Investor, Student Loans
  7. Federal Reserve, Consumer Credit – G.19
  8. One Wisconsin Now, Twenty to Life: Higher Education Turning Into Multi-Decade Debt Sentence
  9. J.P. Morgan, Currency Volatility: Will a Strong US Dollar Return?
  10. NCES, Digest of Education Statistics
  11. Loan Repayment Calculator
  12. LendEDU, Data From Nearly 10,000 Student Loan Borrowers 
  13. College Board, Trends in College Pricing