Report Highlights. The average monthly student loan payment is an estimated $460 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 $26,000 in interest alone over 20 years (at the rounded average interest rate of 6%).
Up to 67.1% of the average borrower’s total cost of repayment is generated interest.
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 $461.
In 2005, the average student loan payment was $227; adjusted for inflation, this is equivalent to $331.
10% of your gross income (GI) should go toward paying off debts according to federal guidelines.[1]
$461 monthly payments are equivalent to 10% of a $55,320 annual income; $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 same federal guidelines.
$461 monthly payments are equivalent to 36% of a $15,370 annual GI; $393 monthly payments are equivalent to 36% of $13,100.
The mean starting salary among all new graduates is $55,800.
10% of the mean starting salary is $465.
Financial experts and the federal government list 10 years as the ideal timeline for paying off undergraduate student loan debt.[2]
The most commonly used federal student loans have an interest rate closer to 3%.
The average federal student loan debt per borrower is $37,693.
Among private student loan borrowers, the average debt is $54,921.
Overall, the average debt per borrower is $39,351.
The majority of undergraduate borrowers owe less than $30,000.
The average debt per enrolled student is $30,000. These are the only parameters available for some historical data.
Average New Graduate’s Loan Payments (3% APR, $465 Monthly Payment)
Average Debt
Repayment Term
Ultimate Cost
$30,000
5 yrs, 10 mos
$32,800
$37,693
7 yrs, 7 mos
$42,175
$39,351
8 years
$44,703
$54,921
11 ys, 8 mos
$65,171
$48,156
10 years
$55,800
Average New Graduate’s Loan Payments (3% APR for 10 Years, $55,800 GI)
Monthly Payment
% of Income
Average Debt
Ultimate Cost
$290
6.2%
$30,000
$34,800
$364
7.8%
$37,693
$43,676
$380
8.2%
$39,351
$45,597
$530
11.4%
$54,921
$63,639
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.
2.75% is the interest rate for Direct Subsidized and Unsubsidized federal student loans to undergraduate borrowers.
Undergraduates of public institutions owe an average of $29,500 per enrolled student.
$42,500 is a low-end starting salary for a new graduate with a Bachelor’s degree.
$73,800 is a high-end salary.
$64,900 is the average annual salary for a recent graduate with a Bachelor’s degree.
$52,000 is the median salary for new graduates with Bachelor’s degrees.
Undergraduate Class of 2021 Student Loan Payments
Average Payments on a Low-End Starting Salary (2.75% APR, $42,500 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$354
10%
$29,500
7 yrs, 9 mos
$32,800
$393
11.1%
$29,500
6 yrs, 10 mos
$32,400
$393
11.1%
$35,000
8 yrs, 4 mos
$39,200
$393
11.1%
$45,300
11 yrs, 2 mos
$52,700
Payments on a Mid-Range Starting Salary (2.75% APR, $52,000 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$393
9%
$29,500
6 yrs, 10 mos
$32,400
$433
10%
$29,500
6 yrs, 2 mos
$32,100
$433
10%
$35,000
7 yrs, 6 mos
$38,800
$433
10%
$45,300
10 yrs
$51,900
Payments on a High-End Starting Salary (2.75% APR, $64,900 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$393
7%
$29,500
6 yrs, 10 mos
$32,400
$541
10%
$29,500
4 yrs, 10 mos
$31,500
$541
10%
$35,000
5 yrs, 10 mos
$37,900
$541
10%
$45,300
7 yrs, 9 mos
$50,400
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 41% of Associate’s degree holders who graduated from public institutions use student loans to pay for school.
84% of attendees of private, nonprofit schools take on student loan debt.
88% of attendees of private, for-profit schools take on student loan debt.
$46,100 is the average annual salary for a recently graduated Associate’s degree holder.
$33,800 is the low-end average annual salary.
4 to 7+ years is the projected student loan debt repayment period for Associate’s degree holders who graduate in 2021.
Associate’s Student Loan Payments, 10% of $33,800 GI
Monthly Payment
Average Debt
Repayment Term
Ultimate Cost
$281
$17,800
5 yrs, 9 mos
$19,300
$281
$28,300
9 yrs, 7 mos
$32,200
$281
$30,100
10 yrs, 3 mos
$34,600
Associate’s Student Loan Payments, 10% of $46,100 GI
Monthly Payment
Average Debt
Repayment Term
Ultimate Cost
$384
$17,800
4 yrs, 1 mo
$18,800
$384
$28,300
6 yrs, 9 mos
$31,000
$384
$30,100
7 yrs, 3 mos
$33,200
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.
4.3% is the interest rate for Direct Unsubsidized federal student loans to graduate or professional borrowers.
5.3% 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 $42,000 GI.
An average salary is for a professional degree holder, who can make over $100,000.
Master’s Student Loan Payments
$58,300 is the average student debt for a borrower who graduated from a public institution with a Master’s degree.
$96,700 is the average debt for Master’s degree holders who attended a private, for-profit institution.
$77,800 is the average salary for a Master’s degree holder.
$42,000 is the low-end salary for a Master’s degree holder.
Student Loan Payments on a Low-End Salary (4.3% APR, $42,000 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$350
10%
$58,300
21 yrs, 2 mos
$88,900
$350
10%
$77,000
36 yrs, 2 mos
$151,900
$350
10%
$96,700
107 yrs, 4 mos
$450,800
$599
17.1%
$58,300
10 years
$71,800
$791
22.6%
$77,000
10 years
$94,900
$993
28%
$96,700
10 years
$119,100
Student Loan Payments on an Average Salary (4.3% APR, $77,800 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$648
10%
$58,300
9 yrs, 1 mo
$70,500
$648
10%
$96,700
17 yrs, 10 mos
$138,600
$648
10%
$58,300
9 yrs, 7 mos
$74,500
$648
10%
$77,000
12 yrs, 11 mos
$100,500
$791
12.2%
$77,000
10 years
$94,900
Student Loan Payments on a Low-End Salary (5.3% APR, $42,000 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$350
10%
$58,300
25 yrs, 2 mos
$105,700
$350
10%
$77,000
67 yrs, 5 mos
$283,000
$350
10%
$96,700
NA†
NA
$430
12.3%
$96,700
94 yrs, 6 mos
$487,500
$627
17.9%
$58,300
10 years
$75,200
$828
23.7%
$58,300
10 years
$99,400
$1,040
29.7%
$96,700
10 years
$124,800
†It is not possible to pay off this loan at this rate.
Student Loan Payments on a Low-End Salary (5.3% APR, $77,800 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$648
10%
$77,000
14 yrs, 1 mo
$109,400
$648
10%
$96,700
20 yrs, 4 mos
$158,200
$828
12.8%
$77,000
10 years
$99,400
$993
15.3%
$77,000
10 years
$119,100
$1,039
16%
$96,700
10 years
$124,800
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.
$101,100 is the average salary for people with Doctorate degrees.
$69,000 is a low-end salary for Doctorate degree holders.
$98,700 is the average debt for a Doctorate degree.
$243,300 is the average debt for Professional degree holders who attended private, nonprofit institutions.
$100,000 is the average annual salary for someone with a Professional degree.
$62,500 is a low-end salary for someone with a Professional degree.
Payments on a Doctorate’s Low-End Salary (4.3% APR, $69,000 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$575
10%
$98,700
22 yrs, 3 mos
$153,500
$575
10%
$100,700
23 yrs, 0 mos
$158,800
$575
10%
$171,400
NA
NA
$623
10.8%
$171,400
99 yrs, 2 mos
$741,600
$1,014
17.6%
$98,700
10 years
$121,600
$1,034
18.0%
$100,700
10 years
$124,100
$1,760
30.6%
$171,400
10 years
$211,20
Payments on a Doctorate’s Average Salary (4.3% APR, $101,100 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$843
10%
$98,700
12 yrs, 8 mos
$128,200
$843
10%
$100,700
13 yrs, 0 mos
$131,700
$843
10%
$171,400
30 yrs, 5 mos
$307,300
$1,014
12.0%
$98,700
10 years
$121,600
$1,034
12.3%
$100,700
10 years
$124,100
$1,760
20.9%
$171,400
10 years
$211,200
Payments on a Doctorate’s Low-End Salary (5.3% APR, $69,000 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$575
10%
$98,700
26 yrs, 10 mos
$185,200
$575
10%
$100,700
28 yrs, 1 mo
$193,800
$575
10%
$171,400
NA
NA
$761
13.2%
$171,400
99 yrs, 4 mos
$907,000
$1,061
18.5%
$98,700
10 years
$127,400
$1,083
18.8%
$100,700
10 years
$129,900
$1,844
32.1%
$171,400
10 years
$221,200
Payments on a Doctorate’s Average Salary (5.3% APR, $101,100 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$843
10%
$98,700
13 yrs, 9 mos
$139,300
$843
10%
$100,700
14 yrs, 2 mos
$143,400
$843
10%
$171,400
43 yrs, 2 mos
$436,700
$1,061
12.6%
$98,700
10 years
$127,400
$1,083
12.9%
$100,700
10 years
$129,900
$1,844
21.9%
$171,400
10 years
$221,200
Payments on a Professional’s Low-End Salary (4.3% APR, $62,500 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$521
10%
$152,600
NA
NA
$555
11%
$152,600
71 yrs, 11 mos
$494,300
$800
15.4%
$203,600
56 yrs, 7 mos
$543,500
$880
17%
$237,400
79 yrs, 3 mos
$836,900
$1,567
30%
$152,600
10 years
$188,000
$1,875
36%
$237,400
14 yrs, 1 mo
$316,900
$1,875
36%
$203,600
11 yrs, 6 mos
$258,300
$2,091
40.1%
$203,600
10 years
$250,900
$2,438
48.7%
$237,400
10 years
$292,500
Payments on a Professional’s Average Salary (4.3% APR, $100K GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$833
10%
$152,600
24 yrs, 11 mos
$248,800
$833
10%
$203,600
48 yrs, 7 mos
$485,800
$833
10%
$237,400
NA
NA
$900
10.8%
$237,400
67 yrs, 8 mos
$730,700
$1,567
18.8%
$152,600
10 years
$188,022
$2,091
25.1%
$203,600
10 years
$250,900
$2,438
29.3%
$237,400
10 years
$292,500
Payments on a Professional’s Low-End Salary (5.3% APR, $62,500 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$700
13.4%
$152,600
62 yrs, 3 mos
$523,000
$1,000
19.2%
$203,600
43 yrs, 5 mos
$520,800
$1,060
20.4%
$237,400
85 yrs, 7 mos
$1,088,400
$1,641
31.5%
$152,600
10 years
$196,900
$1,875
36%
$203,600
12 yrs, 4 mos
$277,900
$1,875
36%
$237,400
15 yrs, 6 mos
$348,500
$2,189
42%
$203,600
10 years
$262,700
$2,553
49.0%
$237,400
10 years
$306,400
Payments on a Professional’s Average Salary (5.3% APR, $100K GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$833
10%
$152,600
31 yrs, 4 mos
$313,000
$833
10%
$203,600
NA
NA
$833
10%
$237,400
NA
NA
$1,000
12.0%
$203,600
43 yrs, 5 mos
$520,800
$1,100
13.2%
$237,400
57 yrs, 11 mos
$764,200
$1,641
19.7%
$152,600
10 years
$192,900
$2,189
26.3%
$203,600
10 years
$262,700
$2,553
30.6%
$237,400
10 years
$306,400
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.
$241,600 is the average student loan debt for a medical school graduate.
$63,200 is a first-year resident’s annual salary.
$174,000 is a general physician’s salary.
$400,000 is an anesthesiologist’s salary.
Payments on a First-Year Resident’s Salary‡ (4.3% APR)
Monthly Payment
% of Income
Repayment Term
Ultimate Cost
$527
10%
NA
NA
$1000
19%
46 yrs, 9 mos
$561,400
$2,481
47.1%
10
$297,700
‡The average medical school debt is $241,600; the average salary for a first-year resident is $63,200.
Payments on a First-Year Resident’s Salary (5.3% APR)
Monthly Payment
% of Income
Repayment Term
Ultimate Cost
$527
10%
NA
NA
$1,100
20.9%
66 yrs, 4 mos
$875,800
$2,598
49.3%
10 years
$311,800
Payments on a General Physicians’s Salary ($174K)
Monthly Payment
% of Income
% APR
Repayment Term
Ultimate Cost
$1,450
10%
4.3%
21 yrs, 2 mos
$368,500
$2,481
17.1%
4.3%
10 years
$297,700
$1,450
10%
5.3%
25 yrs, 2 mos
$438,100
$2,598
17.9%
5.3%
10 years
$311,800
Payments on an Anesthesiologist’s Salary ($400K)
Monthly Payment
% of Income
% APR
Repayment Term
Ultimate Cost
$3,330
10%
4.3%
7 yrs, 0 mos
$280,300
$3,330
10%
5.3%
7 yrs, 4 mos
$291,900
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.
$160,000 is the average student loan debt for a law school graduate.
$55,200 is the average starting salary for a law school graduate.
$127,000 is an average salary for an experienced attorney.
$188,000 is an average salary for a patent attorney.
Payments on a Lawyer’s Starting Salary¶ (4.3% APR)
Monthly Payment
% of Income
Repayment Term
Ultimate Cost
$460
10%
NA
NA
$650
14.1%
49 yrs, 10 mos
$388,400
$1,643
35.7%
10 years
$197,100
¶The average law school debt is $160,000; the average starting salary for new law school graduates is $55,200.
Payments on a Lawyer’s Starting Salary (5.3% 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%
0 years
$206,500
Payments on an Experienced Lawyer’s Salary ($127K GI)
Monthly Payment
% of Income
% APR
Repayment Term
Ultimate Cost
$1,058
10%
4.3%
18 yrs, 2 mos
$230,900
$1,643
15.5%
4.3%
10 years
$197,100
$1,058
10%
5.3%
20 yrs, 10 mos
$264,700
$1,721
16.3%
5.3%
10 years
$206,500
Payments on a Patent Attorney’s Salary ($188K GI)
Monthly Payment
% of Income
% APR
Repayment Term
Ultimate Cost
$1,567
10%
4.3%
10 yrs, 7 mos
$199,600
$1,567
10%
5.3%
11 yrs, 4 mos
$213,200
$1,721
11%
5.3%
10 years
$206,500
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.
3.82% is the low-end private student loan interest rate for most student borrowers.
14.5% is the high-end interest rate.
Most students owe between $20,000 and $40,000 in student loan debt.
56% of indebted borrowers owe $20,000 or less in student loan
34.3% of indebted student borrowers owe $10,000 or less in federal student loans.
17.1% of borrowers owe less than $5,000.
21.4% of borrowers owe between $10,000 and $20,000 in student loans.
18.4% owe $40,000 to $100,000.
7.4% owe $100,000 or more.
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, 4 mos
$15,200
$30,000
4 yrs, 9 mos
$30,900
$60,000
9 yrs, 10 mos
$63,600
◊A $64,900 annual GI is $5,408.33 monthly, 10% of which is $540.83 or a rounded $541.
Private Student Loan Payments at a Low-End APR (3.82%)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$541
10%
$15,000
2 yrs, 5 mos
$15,700
$541
10%
$30,000
5 years, 1 mos
$33,100
$541
10%
$60,000
11 yrs, 5 mos
$74,100
$602
11.1%
$60,000
10 years
$72,300
Private Student Loan Payments at a High-End APR (14.5%)
