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.
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%)
