Report Highlights:
- The average monthly student loan payment is $393.
- It takes student borrowers an average of 20 years, or 240 monthly payments, to repay their student loan debt.
- At a 6% interest rate over 20 years, the average student loan accrues $26,000 in interest alone, or 67.1% of the total cost of repayment.
Most of the 43.4 million Americans with student loan debt make regular monthly payments to diminish their debt. The average student loan payment can range widely among individuals of various income and debt levels. Lump sum payments are rare and usually only happen in the event of student loan default. Instead, most borrowers pay off their debts in regular installments.
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.
- $393 is the average monthly student loan payment.
- 10% of income should go toward paying off debts according to federal guidelines; $393 is 10% of $47,160.
- 36% of income is the maximum amount that should go toward paying off debt according to the same federal guidelines; $393 is 36% of $13,100.
- 10 years is the ideal timeline for paying off student loan debt according to financial experts.
- The mean starting salary for among all new graduates is $55,800, 10% of which is $465.
- 3% is the rough interest rate on the most commonly used federal student loans.
- The average debt per borrower is $36,140; 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.
| Monthly Payment | % of Income | Income | Average Debt | Repayment Term | Ultimate Cost | Number of Payments |
|---|---|---|---|---|---|---|
| $393 | 10% | $47,160 | $40,700 | 10 years | $47,160 | 120 |
| $393 | 10% | $47,160 | $30,000 | 7 yrs, 1 mo | $33,300 | 85 |
| $465 | 10% | $55,800 | $30,000 | 5 yrs, 10 mos | $32,800 | 70 |
| $290 | 6.2% | $55,800 | $30,000 | 10 years | $34,800 | 120 |
| $290 | 7.3% | $47,160 | $30,000 | 10 years | $34,800 | 120 |
| $465 | 10% | $55,800 | $48,156 | 10 years | $55,800 | 120 |
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.
| Monthly Payment | % of Income | Income | Average Debt | Repayment Term | Ultimate Cost | Number of Payments |
|---|---|---|---|---|---|---|
| $354 | 10% | $42,500 | $29,500 | 7 yrs, 9 mos | $32,800 | 93 |
| $393 | 11.1% | $42,500 | “” | 6 yrs, 10 mos | $32,400 | 83 |
| “” | “” | “” | $35,000 | 8 yrs, 4 mos | $39,200 | 100 |
| “” | “” | “” | $45,300 | 11 yrs, 2 mos | $52,700 | 135 |
| “” | 9% | $52,000 | $29,500 | 6 yrs, 10 mos | $32,400 | 83 |
| “” | 7% | $64,900 | “” | “” | “” | “” |
| $433 | 10% | $52,000 | $29,500 | 6 yrs, 2 mos | $32,100 | 75 |
| “” | “” | “” | $35,000 | 7 yrs, 6 mos | $38,800 | 90 |
| “” | “” | “” | $45,300 | 10 yrs | $51,900 | 105 |
| $541 | 10% | $64,900 | $29,500 | 4 yrs, 10 mos | $31,500 | 59 |
| “” | “” | “” | $35,000 | 5 yrs, 10 mos | $37,900 | 71 |
| “” | “” | “” | $45,300 | 7 yrs, 9 mos | $50,400 | 94 |
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.
| Monthly Payment | Income | Average Debt | Repayment Term | Ultimate Cost | Number of Payments |
|---|---|---|---|---|---|
| $281 | $33,800 | $17,800 | 5 yrs, 9 mos | $19,300 | 67 |
| “” | “” | $28,300 | 9 yrs, 7 mos | $32,200 | 115 |
| “” | “” | $30,100 | 10 yrs, 3 mos | $34,600 | 124 |
| $384 | $46,100 | $17,800 | 4 yrs, 1 mo | $18,800 | 49 |
| “” | “” | $28,300 | 6 yrs, 9 mos | $31,000 | 81 |
| “” | “” | $30,100 | 7 yrs, 3 mos | $33,200 | 87 |
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.
- $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.
| Monthly Payment | % of Income | Income | % APR | Average Debt | Repayment Term | Ultimate Cost | Number of Payments |
|---|---|---|---|---|---|---|---|
| $350 | 10% | $42,000 | 4.3% | $58,300 | 21 yrs, 2 mos | $88,900 | 254 |
| “” | “” | “” | “” | $77,000 | 36 yrs, 2 mos | $151,900 | 434 |
| “” | “” | “” | “” | $96,700 | 107 yrs, 4 mos | $450,800 | 1,289 |
| “” | “” | “” | 5.3% | $58,300 | 25 yrs, 2 mos | $105,700 | 302 |
| “” | “” | “” | “” | $77,000 | 67 yrs, 5 mos | $283,000 | 809 |
| “” | “” | “” | “” | $96,700 | NA* | NA | NA |
| $430 | 12.3% | “” | “” | “” | 94 yrs, 6 mos | $487,500 | 1,134 |
| $648 | 10% | $77,800 | 4.3% | $58,300 | 9 yrs, 1 mo | $70,500 | 109 |
| “” | “” | “” | “” | $96,700 | 17 yrs, 10 mos | $138,600 | 214 |
| “” | “” | “” | “” | $58,300 | 9 yrs, 7 mos | $74,500 | 115 |
| “” | “” | “” | “” | $77,000 | 12 yrs, 11 mos | $100,500 | 156 |
| “” | “” | “” | 5.3% | “” | 14 yrs, 1 mo | $109,400 | 169 |
| “” | “” | “” | “” | $96,700 | 20 yrs, 4 mos | $158,200 | 245 |
| $599 | 17.1% | $42,000 | 4.3% | $58,300 | 10 years | $71,800 | 120 |
| $627 | 17.9% | “” | 5.3% | “” | 10 years | $75,200 | 120 |
| $791 | 22.6% | “” | 4.3% | $77,000 | 10 years | $94,900 | 120 |
| “” | 12.2% | $77,800 | “” | “” | 10 years | $94,900 | 120 |
| $828 | 23.7% | $42,000 | 5.3% | “” | 10 years | $99,400 | 120 |
| “” | 12.8% | $77,800 | “” | “” | 10 years | $99,400 | 120 |
| $993 | 28% | $42,000 | 4.3% | $96,700 | 10 years | $119,100 | 120 |
| “” | 15.3% | $77,800 | “” | $77,000 | 10 years | $119,100 | 120 |
| $1,040 | 29.7% | $42,000 | 5.3% | $96,700 | 10 years | $124,800 | 120 |
| $1,039 | 16% | $77,800 | “” | “” | 10 years | $124,800 | 120 |
*It is not possible to pay off this loan at this rate.
Monthly Payments for Professional and Doctorate Degree Holders
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.
| Monthly Payment | % of Income | Income | % APR | Average Debt | Repayment Term | Ultimate Cost | Number of Payments |
|---|---|---|---|---|---|---|---|
| $575 | 10% | $69,000 | 4.3% | $98,700 | 22 yrs, 3 mos | $153,500 | 267 |
| $575 | 10% | $69,000 | 4.3% | $100,700 | 23 yrs, 0 mos | $158,800 | 277 |
| $575 | 10% | $69,000 | 4.3% | $171,400 | NA | NA | NA |
| $575 | 10% | $69,000 | 5.3% | $98,700 | 26 yrs, 10 mos | $185,200 | 322 |
| $575 | 10% | $69,000 | 5.3% | $100,700 | 28 yrs, 1 mo | $193,800 | 337 |
| $575 | 10% | $69,000 | 5.3% | $171,400 | NA | NA | NA |
| $623 | 10.8% | $69,000 | 4.3% | $171,400 | 99 yrs, 2 mos | $741,600 | 1,191 |
| $761 | 13.2% | $69,000 | 5.3% | $171,400 | 99 yrs, 4 mos | $907,000 | 1,192 |
| $843 | 10% | $101,100 | 4.3% | $98,700 | 12 yrs, 8 mos | $128,200 | 152 |
| $843 | 10% | $101,100 | 4.3% | $100,700 | 13 yrs, 0 mos | $131,700 | 156 |
| $843 | 10% | $101,100 | 4.3% | $171,400 | 30 yrs, 5 mos | $307,300 | 365 |
| $843 | 10% | $101,100 | 5.3% | $98,700 | 13 yrs, 9 mos | $139,300 | 165 |
| $843 | 10% | $101,100 | 5.3% | $100,700 | 14 yrs, 2 mos | $143,400 | 170 |
| $843 | 10% | $101,100 | 5.3% | $171,400 | 43 yrs, 2 mos | $436,700 | 518 |
| $1,014 | 12.0% | $101,100 | 4.3% | $98,700 | 10 years | $121,600 | 120 |
| $1,014 | 17.6% | $69,000 | 4.3% | $98,700 | 10 years | $121,600 | 120 |
| $1,034 | 18.0% | $69,000 | 4.3% | $100,700 | 10 years | $124,100 | 120 |
| $1,034 | 12.3% | $101,100 | 4.3% | $100,700 | 10 years | $124,100 | 120 |
| $1,061 | 18.5% | $69,000 | 5.3% | $98,700 | 10 years | $127,400 | 120 |
| $1,061 | 12.6% | $101,100 | 5.3% | $98,700 | 10 years | $127,400 | 120 |
| $1,083 | 18.8% | $69,000 | 5.3% | $100,700 | 10 years | $129,900 | 120 |
| $1,083 | 12.9% | $101,100 | 5.3% | $100,700 | 10 years | $129,900 | 120 |
| $1,760 | 30.6% | $69,000 | 4.3% | $171,400 | 10 years | $211,200 | 120 |
| $1,760 | 20.9% | $101,100 | 4.3% | $171,400 | 10 years | $211,200 | 120 |
| $1,844 | 32.1% | $69,000 | 5.3% | $171,400 | 10 years | $221,200 | 120 |
| $1,844 | 21.9% | $101,100 | 5.3% | $171,400 | 10 years | $221,200 | 120 |
| Monthly Payment | % of Income | Income | % APR | Average Debt | Repayment Term | Ultimate Cost | Number of Payments |
|---|---|---|---|---|---|---|---|
| $521 | 10% | $62,500 | 4.3% | $152,600 | NA | NA | NA |
| $555 | 11% | $62,500 | 4.3% | $152,600 | 71 yrs, 11 mos | $494,300 | 863 |
| $1,567 | 30% | $62,500 | 4.3% | $152,600 | 10 years | $188,000 | 120 |
| $880 | 17% | $62,500 | 4.3% | $237,400 | 79 yrs, 3 mos | $836,900 | 951 |
| $1,875 | 36% | $62,500 | 4.3% | $237,400 | 14 yrs, 1 mo | $316,900 | 169 |
| $2,438 | 48.7% | $62,500 | 4.3% | $237,400 | 10 years | $292,500 | 120 |
| $800 | 15.4% | $62,500 | 4.3% | $203,600 | 56 yrs, 7 mos | $543,500 | 680 |
| $1,875 | 36% | $62,500 | 4.3% | $203,600 | 11 yrs, 6 mos | $258,300 | 138 |
| $2,091 | 40.1% | $62,500 | 4.3% | $203,600 | 10 years | $250,900 | 120 |
| $700 | 13.4% | $62,500 | 5.3% | $152,600 | 62 yrs, 3 mos | $523,000 | 747 |
| $1,641 | 31.5% | $62,500 | 5.3% | $152,600 | 10 years | $196,900 | 120 |
| $1,060 | 20.4% | $62,500 | 5.3% | $237,400 | 85 yrs, 7 mos | $1,088,400 | 1,027 |
| $1,875 | 36% | $62,500 | 5.3% | $237,400 | 15 yrs, 6 mos | $348,500 | 186 |
| $2,553 | 49.0% | $62,500 | 5.3% | $237,400 | 10 years | $306,400 | 120 |
| $1,000 | 19.2% | $62,500 | 5.3% | $203,600 | 43 yrs, 5 mos | $520,800 | 521 |
| $1,875 | 36% | $62,500 | 5.3% | $203,600 | 12 yrs, 4 mos | $277,900 | 148 |
| $2,189 | 42% | $62,500 | 5.3% | $203,600 | 10 years | $262,700 | 120 |
| $833 | 10% | $100,000 | 4.3% | $152,600 | 24 yrs, 11 mos | $248,800 | 299 |
| $1,567 | 18.8% | $100,000 | % | $152,600 | 10 years | $188,022 | 120 |
| $833 | 10% | $100,000 | 4.3% | $237,400 | yrs, mos | $ | |
| $833 | 10% | $100,000 | 4.3% | $237,400 | NA | NA | NA |
| $900 | 10.8% | $100,000 | 4.3% | $237,400 | 67 yrs, 8 mos | $730,700 | 812 |
| $2,438 | 29.3% | $100,000 | 4.3% | $237,400 | 10 years | $292,500 | 120 |
| $833 | 10% | $100,000 | 4.3% | $203,600 | 48 yrs, 7 mos | $485,800 | 583 |
| $2,091 | 25.1% | $100,000 | 4.3% | $203,600 | 10 years | $250,900 | 120 |
| $833 | 10% | $100,000 | 5.3% | $152,600 | 31 yrs, 4 mos | $313,000 | 376 |
| $1,641 | 19.7% | $100,000 | 5.3% | $152,600 | 10 years | $192,900 | 120 |
| $833 | 10% | $100,000 | 5.3% | $237,400 | NA | NA | NA |
| $1,100 | 13.2% | $100,000 | 5.3% | $237,400 | 57 yrs, 11 mos | $764,200 | 695 |
| $2,553 | 30.6% | $100,000 | 5.3% | $237,400 | 10 years | $306,400 | 120 |
| $833 | 10% | $100,000 | 5.3% | $203,600 | NA | NA | NA |
| $1,000 | 12.0% | $100,000 | 5.3% | $203,600 | 43 yrs, 5 mos | $520,800 | 521 |
| $2,189 | 26.3% | $100,000 | 5.3% | $203,600 | 10 years | $262,700 | 120 |
Payments for Medical and Law School Debt
Among professional degree holders, medical and law degrees are among the most commonly sought. They are also among the most expensive. 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. Further, 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.
- $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.
| Monthly Payment | % of Income | Income | % APR | Repayment Term | Ultimate Cost | Number of Payments |
|---|---|---|---|---|---|---|
| $460 | 10% | $55,200 | 4.3% | NA | NA | NA |
| $650 | 14.1% | $55,200 | 4.3% | 49 yrs, 10 mos | $388,400 | 598 |
| $1,643 | 35.7% | $55,200 | 4.3% | 10 years | $197,100 | 120 |
| $1,058 | 10% | $127,000 | 4.3% | 18 yrs, 2 mos | $230,900 | 218 |
| $1,643 | 15.5% | $127,000 | 4.3% | 10 years | $197,100 | 120 |
| $1,567 | 10% | $188,000 | 4.3% | 10 yrs, 7 mos | $199,600 | 127 |
| $750 | 16.3% | $55,200 | 5.3% | 53 yrs, 11 mos | $485,200 | 647 |
| $1,656 | 36% | $55,200 | 5.3% | 10 yrs, 6 mos | $209,100 | 126 |
| $1,721 | 37.4% | $55,200 | 5.3% | 10 years | $206,500 | 120 |
| $1,058 | 10% | $127,000 | 5.3% | 20 yrs, 10 mos | $264,700 | 250 |
| $1,721 | 16.3% | $127,000 | 5.3% | 10 years | $206,500 | 120 |
| $1,567 | 10% | $188,000 | 5.3% | 11 yrs, 4 mos | $213,200 | 136 |
| $1,721 | 11% | $188,000 | 5.3% | 10 years | $206,500 | 120 |
| Monthly Payment | % of Income | Income | % APR | Repayment Term | Ultimate Cost | Number of Payments |
|---|---|---|---|---|---|---|
| $527 | 10% | $63,200 | 4.3% | NA | NA | NA |
| $1000 | 19% | $63,200 | 4.3% | 46 yrs, 9 mos | $561,400 | 561 |
| $2,481 | 47.1% | $63,200 | 4.3% | 10 | $297,700 | 120 |
| $1,450 | 10% | $174,000 | 4.3% | 21 yrs, 2 mos | $368,500 | 254 |
| $2,481 | 17.1% | $174,000 | 4.3% | 10 years | $297,700 | 120 |
| $3,330 | 10% | $400,000 | 4.3% | 7 yrs, 0 mos | $280,300 | 84 |
| $527 | 10% | $63,200 | 5.3% | NA | NA | NA |
| $1,100 | 20.9% | $63,200 | 5.3% | 66 yrs, 4 mos | $875,800 | 796 |
| $2,598 | 49.3% | $63,200 | 5.3% | 10 years | $311,800 | 120 |
| $1,450 | 10% | $174,000 | 5.3% | 25 yrs, 2 mos | $438,100 | 302 |
| $2,598 | 17.9% | $174,00 | 5.3% | 10 years | $311,800 | 120 |
| $3,330 | 10% | $400,000 | 5.3% | 7 yrs, 4 mos | $291,900 | 88 |
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.
| Monthly Payment | % of Income | % APR | Average Debt | Repayment Term | Ultimate Cost | Number of Payments |
|---|---|---|---|---|---|---|
| $541 | 10% | 1.2% | $15,000 | 2 yrs, 4 mos | $15,200 | 28 |
| $541 | 10% | 1.2% | $30,000 | 4 yrs, 9 mos | $30,900 | 57 |
| $541 | 10% | 1.2% | $60,000 | 9 yrs, 10 mos | $63,600 | 118 |
| $541 | 10% | 3.82% | $15,000 | 2 yrs, 5 mos | $15,700 | 29 |
| $541 | 10% | 3.82% | $30,000 | 5 years, 1 mos | $33,100 | 61 |
| $541 | 10% | 3.82% | $60,000 | 11 yrs, 5 mos | $74,100 | 137 |
| $602 | 11.1% | 3.82% | $60,000 | 10 years | $72,300 | 120 |
| $541 | 10% | 14.5% | $15,000 | 2 yrs, 10 mos | $18,400 | 34 |
| $541 | 10% | 14.5% | $30,000 | 7 yrs, 8 mos | $49,900 | 92 |
| $541 | 10% | 14.5% | $60,000 | NA | >NA | NA |
| $730 | 13.5% | 14.5% | $60,000 | 34 yrs, 7 mos | $302,900 | 415 |
| $950 | 17.6% | 14.5% | $60,000 | 10 years | $114,000 | 120 |
Sources
- PEW Research Center, Student Loan System Presents Repayment Challenges
- U.S. Federal Reserve, Consumer Credit – G.19
- U.S. Bureau of Labor Statistics (BLS), Learn more, Earn More: Education Leads to Higher Wages, Lower Unemployment
- U.S. Department of Education (ED) Office of Federal Student Aid (OFSA), Federal Student Loan Portfolio
- ED OFSA, The Standard Repayment Plan is the Basic Repayment Plan for Loans from the William D. Ford Federal Direct Loan (Direct Loan) Program and Federal Family Education Loan (FFEL) Program
- National Center for Education Statistics (NCES), Trends in Student Loan Debt for Graduate School Completers
- NCES, The Condition of Education: Loans for Undergraduate Students
- CNBC, College Grads Expect to Earn $60,000 in Their First Job—Here’s How Much They Actually Make
- National Association of Colleges and Employers, Class of 2018’s Preliminary Salary Shows Slight Drop
- BLS, Consumer Price Index Inflation Calculator
- U.S. Department of Justice, Entry-Level and Experience Attorneys
- National Library of Medicine, Graduate Medical Education Funding Mechanisms, Challenges, and Solutions: A Narrative Review
- U.S. Government Accountability Office, Graduate Medical Education: Trends in Training and Student Debt
- Current Student Loan Interest Rates and How They Work
- American Institutes for Research, What’s The Value Of An
Associate’s Degree?: The Return On Investment For Graduates And Taxpayers - Monster, Best-Paying and Worst-Paying Master’s Degrees
- PayScale, Doctorate (PhD) Degree
- Forbes, College Degrees with the Highest and Lowest Starting Salaries in 2017