Average Student Loan Payment

Report Highlights. The average monthly student loan payment is an estimated $503 based on previously recorded average payments and median average salaries among college graduates.

  • The average borrower takes 20 years to repay their student loan debt.
  • The average student loan accrues $27,000 in interest alone over 20 years (at the rounded average interest rate of 6%).
  • Up to 42% of the average borrower’s total cost of repayment is generated interest.

Related reports include Average Time to Repay Student Loans | Student Loan Debt Statistics | Average Student Loan Interest Rate | Student Loan Default Rate

Average student loan payment on Education Data Initiative

Average Student Loan Payments

An appropriate monthly payment is based on multiple variables. The indebted student’s income is a significant factor in determining monthly payments. The total debt and interest rate as well as the borrower’s repayment timeline may all affect the dollar amount of their monthly payments.

  • In 2016, the average student loan payment was $393.
  • Adjusted for inflation, this is the equivalent of $503.
  • In 2005, the average student loan payment was $227; adjusted for inflation, this is equivalent to $361.
  • 20% of your gross income (GI) should go toward paying off debts based on the 50-20-30 rule of finance.
  • $503 monthly payments are equivalent to 10% of a $60,360 annual GI; $393 monthly payments are 10% of $47,160.
  • 36% of income is the maximum amount that should go toward paying off debt according to the 28/36 rule of finance.
  • $461 monthly payments are equivalent to 36% of a $15,370 annual GI; $393 monthly payments are equivalent to 36% of $13,100.
  • The median starting salary among all new graduates is $61,600.
  • 10% of the mean starting salary is $513.
  • The standard repayment plan offered by the federal government has a 10-year timeline.
  • The most commonly used federal student loans have an interest rate closer to 5%.
  • The average federal student loan debt per borrower is $37,338.
  • Among private student loan borrowers, the average debt is $54,921.
  • Overall, the average debt per borrower is $40,114.
  • The majority of undergraduate borrowers owe less than $30,000.
Average New Graduate’s Loan Payments (4.99% APR, $513 Monthly Payment)
Average Debt Repayment Term Ultimate Cost
$30,000 5 yrs and 8 mos $34,450
$35,000 6 yrs and 9 mos $41,250
$40,000 7 yrs and 11 mos $48,450
$45,000 9 yrs and 2 mos $56,100
$55,000 11 yrs and 11 mos $72,970
Average New Graduate’s Loan Payments (4.99% APR for 10 Years, $61,600 GI)
Monthly Payment % of Income Average Debt Ultimate Cost
$318 6.2% $30,000 $38,166
$371 7.2% $35,000 $44,527
$424 8.3% $40,000 $50,888
$477 9.3% $45,000 $57,249
$583 11.4% $55,000 $69,971

Class of 2021 Student Loan Payments

Because student loan interest rates are at historic lows, current students may reasonably expect to pay off their student loan debts within the recommended 10-year timeline.

  • Between $354 and $541 is the ideal monthly payment for a newly graduated Bachelor’s degree holder.
  • 4.99% is the interest rate for Direct Subsidized and Unsubsidized federal student loans to undergraduate borrowers.
  • Undergraduates of public institutions owe an average of $32,400 per enrolled student.
  • $43,120 is a low-end starting salary for a new graduate with a Bachelor’s degree.
  • $80,080 is a high-end salary.
  • $61,600 is the median annual salary for a recent graduate with a Bachelor’s degree.

Undergraduate Class of 2021 Student Loan Payments

Payments on a Low-End Starting Salary (4.99% APR, $52,125 GI)
Monthly Payment % of Income Average Debt Repayment Term Ultimate Cost
$621 10% $31,824 4 yrs and 10 mos $35,864
$621 10% $33,949 5 yrs and 3 mos $38,595
$621 10% $49,836 8 yrs and 2 mos $60,762
$337 5% $31,824 10 yrs $40,486
$360 6% $33,949 10 yrs $43,190
$528 9% $49,836 10 yrs $63,401
Payments on an Average Starting Salary (4.99% APR, $74,464 GI)
Monthly Payment % of Income Average Debt Repayment Term Ultimate Cost
$434 10% $31,824 7 yrs and 4 mos $38,041
$434 10% $33,949 7 yrs and 11 mos $41,150
$434 10% $49,836 13 yrs and 1 month $67,890
$337 8% $31,824 10 yrs $40,486
$360 8% $33,949 10 yrs $43,190
$528 12% $49,836 10 yrs $63,401

Associate’s Student Loan Payments

Student borrowers with Associate’s degrees are the most likely to pay off their student loans faster than other degree holders. From a purely financial stand-point, this gives the average Associate’s degree the highest value in terms of cost-benefit ratio.

  • Just 28% of Associate’s degree holders who graduated from public institutions use student loans to pay for school.
  • 58% of attendees of private, nonprofit schools take on student loan debt.
  • 78% of attendees of private, for-profit schools take on student loan debt.
  • $52,260 is the average annual salary for an Associate’s degree holder.
  • $36,600 is the low-end average annual salary.
  • 4 to 7+ years is the projected student loan debt repayment period for Associate’s degree holders.
Payments on a Low-End Starting Salary (4.99% APR, $36,582 GI)
Monthly Payment Average Debt Repayment Term Repayment Term Ultimate Cost
$305 10% $19,387 6 yrs and 2 mos $22,561
$305 10% $30,411 10 yrs and 10 mos $39,358
$305 10% $32,256 11 yrs and 8 mos $42,587
$206 7% $19,387 10 yrs $24,664
$322 11% $30,411 10 yrs $38,689
$342 11% $32,256 10 yrs $41,036
Payments on an Average Starting Salary (4.99% APR, $52,260 GI)
Monthly Payment Average Debt Repayment Term Repayment Term Ultimate Cost
$436 10% $19,387 4 yrs and 2 mos $21,481
$436 10% $30,411 6 yrs and 11 mos $35,991
$436 10% $32,256 7 yrs and 5 mos $38,628
$206 5% $19,387 10 yrs $24,664
$322 7% $30,411 10 yrs $38,689
$342 8% $32,256 10 yrs $41,036

Average Payments for Graduate Student Loans

Graduate students logically must make higher monthly payments. For some degrees, this doesn’t just mean paying a higher dollar amount; it may also mean a significant portion of a borrower’s income goes toward repaying student loan debt.

  • 6.54% is the interest rate for Direct Unsubsidized federal student loans to graduate or professional borrowers.
  • 7.54% is the interest rate for Direct PLUS loans, which go to graduate or professional borrowers as well as parents of undergraduates borrowing on their behalf.
  • A low-end salary for a graduate degree holder has $56,100 GI.
  • An average salary is for a professional degree holder, who can make over $100,000.

Master’s Student Loan Payments

  • $53,846 is the average student debt for a borrower who graduated from a public institution with a Master’s degree.
  • $78,923 is the average debt for Master’s degree holders who attended a private, for-profit institution.
  • $86,372 is the average salary for a Master’s degree holder.
  • $60,460 is the low-end salary for a Master’s degree holder.
Student Loan Payments on a Low-End Salary (6.54% APR, $60,460 GI)
Monthly Payment % of Income Average Debt Repayment Term Ultimate Cost
$504 10% $54,991 15 yrs and 5 mos $93,096
$504 10% $68,707 25 yrs and 11 mos $156,251
$504 10% $83,439 N/A† N/A†
$654 13% $54,991 10 yrs $78,468
$817 16% $68,707 10 yrs $98,040
$992 20% $83,439 10 yrs $119,061
Student Loan Payments on an Average Salary (6.54% APR, $86,372 GI)
Monthly Payment % of Income Average Debt Repayment Term Ultimate Cost
$720 10% $54,991 8 yrs and 9 mos $75,145
$720 10% $68,707 12 yrs and 3 mos $105,210
$720 10% $83,439 17 yrs and 4 mos $149,725
$654 9% $54,991 10 yrs $78,468
$817 11% $68,707 10 yrs $98,040
$992 14% $83,439 10 yrs $119,061

It is not possible to pay off this loan at this rate.

Professional & Doctorate Student Loan Payments

The average debt for a graduate from a private, nonprofit institution with a Professional degree is about the same as the average medical school debt.

  • $108,300 is the average salary for people with Doctorate degrees.
  • $75,800 is a low-end salary for Doctorate degree holders.
  • $129,203 is the average debt for a Doctorate degree.
  • $218,600 is the average debt for Professional degree holders who attended private, nonprofit institutions.
  • $108,160 is the average annual salary for someone with a Professional degree.
  • $75,710 is a low-end salary for someone with a Professional degree.
Payments on a Doctorate’s Low-End Salary (6.54% APR, $75,821 GI)
Monthly Payment % of Income Average Debt Repayment Term Ultimate Cost
$610 10% $176,196 N/A N/A
$610 10% $235,011 N/A N/A
$610 10% $274,056 N/A N/A
$1,725 28% $274,056 84 yrs and 6 mos $1,748,622
$2,095 34% $176,196 10 yrs $251,419
$2,795 46% $235,011 10 yrs $335,344
$3,259 53% $274,056 10 yrs $391,058
Payments on a Doctorate’s Average Salary (6.54% APR, $108,316 GI)
Monthly Payment % of Income Average Debt Repayment Term Ultimate Cost
$903 10% $107,696 18 yrs and 5 mos $199,497
$903 10% $113,538 20 yrs and 10 mos $225,011
$903 10% $184,023 N/A N/A
$1,281 14% $107,696 10 yrs $153,674
$1,350 15% $113,538 10 yrs $162,011
$2,188 24% $184,023 10 yrs $262,588
Payments on a Professional’s Low-End Salary (6.54% APR, $73,228 GI)
Monthly Payment % of Income Average Debt Repayment Term Ultimate Cost
$631 10% $165,989 N/A N/A
$631 10% $212,598 N/A N/A
$631 10% $260,350 N/A N/A
$1,650 26% $260,350 63 yrs and 4 mos $1,253,879
$1,974 31% $165,989 10 yrs $236,854
$2,528 40% $212,598 10 yrs $303,362
$3,096 49% $260,350 10 yrs $371,501
Payments on a Professional’s Average Salary (6.54% APR, $108,160 GI)
Monthly Payment % of Income Average Debt Repayment Term Ultimate Cost
$901 10% $165,989 N/A N/A
$901 10% $212,598 N/A N/A
$901 10% $260,350 N/A N/A
$1,650 18% $260,350 63 yrs and 4 mos $1,253,879
$1,974 22% $165,989 10 yrs $236,854
$2,528 28% $212,598 10 yrs $303,362
$3,096 34% $260,350 10 yrs $371,501

Payments for Medical School Debt

Among professional degree holders, medical and law degrees are among the most commonly sought. They are also among the most expensive.

  • $251,000 is the average student loan debt for a medical school graduate.
  • $63,400 is a first-year resident’s annual salary.
  • $274,000 is a general physician’s salary.
  • $454,000 is an anesthesiologist’s salary.
Payments on a First-Year Resident’s Salary‡ (6.54% APR)
Monthly Payment % of Income Repayment Term Ultimate Cost
$528 10% N/A N/A
$1,600 30% 56 yrs and 6 mos $1,084,247
$2,985 56% 10 yrs $358,145

The average medical school debt is $250,990; the average salary for a first-year resident is $63,400.

Payments on a Family Medicine Physician’s Salary ($273K)
Monthly Payment % of Income % APR Repayment Term Ultimate Cost
$2,277 10% 6.54% 15 yrs and 9 mos $428,817
$2,985 14% 6.54% 10 yrs $358,145
Payments on an Anesthesiologist’s Salary ($457K)
Monthly Payment % of Income % APR Repayment Term Ultimate Cost
$3,781 10% 6.54% 7 yrs and 3 mos $325,808
$2,985 8% 6.54% 10 yrs $358,145

Payments for Law School Debt

The average law school debt is more than four times higher than the average undergraduate student debt but still only two-thirds of the average medical school debt. The average starting salary for a new law school graduate is 15% lower than the average salary for someone with a bachelor’s degree.

  • $182,700 is the average student loan debt for a law school graduate.
  • $92,500 is the average starting salary for a law school graduate.
  • $160,250 is the average salary for an experienced attorney.
  • $185,000 is the average high-end salary for a senior attorney.
Payments on a Lawyer’s Starting Salary¶ (6.54% APR)
Monthly Payment % of Income Repayment Term Ultimate Cost
$771 10% N/A N/A
$1200 16% 41 yrs, 10 mos $601,211
$2,173 28% 10 years $260,700

The average law school debt is $183K; the average starting salary for new law school graduates is $92,500.

Payments on a Lawyer’s Starting Salary (6.54% APR)
Monthly Payment % of Income Repayment Term Ultimate Cost
$750 16.3% 53 yrs, 11 mos $485,200
$1,656 36% 10 yrs, 6 mos $209,100
$1,721 37.4% 10 years $206,500
Payments on an Experienced Lawyer’s Salary ($160,000 GI)
Monthly Payment % of Income % APR Repayment Term Ultimate Cost
$1,335 10% 6.54% 26 yrs and 2 mos $418,891
$2,173 14% 6.54% 10 yrs $260,700
Payments on a Senior Attorney’s High-End Salary ($188K GI)
Monthly Payment % of Income % APR Repayment Term Ultimate Cost
$1,542 10% 6.54% 18 yrs and 2 mos $335,889
$2,173 14% 6.54% 10 yrs $260,700

Private Student Loan Payments

Private student loans, for the most part, come from academic institutions as well as banks and credit unions. The total amount of private student loan debt is difficult to track because little of the related data is a matter of public record.

  • 1.2% is the lowest known private student loan interest rate, available only to those with excellent credit.
  • 3.7% is the low-end private student loan interest rate for most student borrowers.
  • 15.9% is the high-end interest rate.
  • Most students owe between $20,000 and $40,000 in student loan debt.
  • 53.2% of indebted borrowers owe $20,000 or less in student loan
  • 33.1% of indebted student borrowers owe $10,000 or less in federal student loans.
  • 16.9% of borrowers owe less than $5,000.
  • 20.1% of borrowers owe between $10,000 and $20,000 in student loans.
  • 18.0% owe $40,000 to $100,000.
  • 7.4% owe $100,000 or more.
  • 2.2% owe in excess of $200,000.
  • The average income among private borrowers is $64,900.
Private Student Loans Payments◊ at the Lowest Possible APR (1.2%)
Average Debt Repayment Term Ultimate Cost
$15,000 2 yrs and 6 mos $15,231
$30,000 5 yrs and 1 month $30,928
$60,000 10 yrs and 5 mos $63,841

A $61,600 annual GI is $5,133 monthly, 10% of which is $513.33 or a rounded $513.

Private Student Loan Payments at a Low-End APR (3.65%)
Monthly Payment % of Income Average Debt Repayment Term Ultimate Cost
$513 10% $15,000 2 yrs and 7 mos $15,733
$513 10% $30,000 5 yrs and 5 mos $33,084
$513 10% $60,000 12 yrs and 1 month $74,266
$598 12% $60,000 10 yrs $71,705
Private Student Loan Payments at a High-End APR (15.9%)
Monthly Payment % of Income Average Debt Repayment Term Ultimate Cost
$513 10% $15,000 3 yrs and 2 mos $19,132
$513 10% $30,000 9 yrs and 7 mos $58,546
$513 10% $60,000 N/A N/A
$800 15.60% $60,000 46 yrs and 6 mos $445,887
$1,005 19.60% $60,000 10 yrs $120,565

Sources

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  3. ED OFSA, Federal Student Loan Portfolio
  4. PEW Research Center, Student Loan System Presents Repayment Challenges
  5. U.S. Federal Reserve, Consumer Credit – G.19
  6. U.S. Bureau of Labor Statistics (BLS), Learn more, Earn More: Education Leads to Higher Wages, Lower Unemployment
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  8. NCES, The Condition of Education: Loans for Undergraduate Students
  9. CNBC, College Grads Expect to Earn $60,000 in Their First Job—Here’s How Much They Actually Make
  10. National Association of Colleges and Employers, Class of 2018’s Preliminary Salary Shows Slight Drop
  11. BLS, Consumer Price Index Inflation Calculator
  12. U.S. Department of Justice, Entry-Level and Experience Attorneys
  13. National Library of Medicine, Graduate Medical Education Funding Mechanisms, Challenges, and Solutions: A Narrative Review
  14. U.S. Government Accountability Office, Graduate Medical Education: Trends in Training and Student Debt
  15. Current Student Loan Interest Rates and How They Work
  16. American Institutes for Research, What’s The Value Of An Associate’s Degree?: The Return On Investment For Graduates And Taxpayers
  17. Monster, Best-Paying and Worst-Paying Master’s Degrees
  18. PayScale, Doctorate (PhD) Degree
  19. Forbes, College Degrees with the Highest and Lowest Starting Salaries in 2017
  20. How Much Do Residents Make in 2023? | BeMo®
  21. Offerdx
  22. Salaries of Legal Professionals 2023 – PublicLegal
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  24. Here’s how much the average student loan borrower owes when they graduate
  25. 50-20-30 Rule – Financial Wellness Calculator.
  26. 28/36 Rule: What It Is, How to Use It, Example.
  27. Twenty to Life: Higher Education Turning Into Multi-Decade Debt Sentence | One Wisconsin Now