4 people hold up signs indicating the percentage of loan debt for each age group. 34% 18-29 year olds. 22% 30-44 year olds. 7% 45-49 year olds. 1% 60 plus year olds.

Student Loan Debt Today

Sep 1, 2020
Empower Insights

A look at the numbers behind one of the most pressing issues many Americans face

Student debt has made lots of headlines recently due to its astronomical growth: Student loan debt in the U.S. now totals $1.5 trillion.1 To put that number in perspective, $1.5 trillion is enough money to cover the costs of 24 million American households for a whole year.2 When you also consider the median student loan debt and how Americans are handling that debt, a clearer picture starts to form

34% of those 18-29 22% of those 30-44, 7% of those 45-59, 1% of those age 60 and over
Less than a bachelor’s degree: $10,000, Bachelor’s degree: $25,000, Advanced degree (e.g., MA, PhD or MD): $45,000
7.65 million borrowers are on an income-based or income-driven repayment plan.4 College graduates age 25-39 with student loans are twice as likely to report struggling financially as graduates without loans.5 Over one-third of borrowers who fail to earn a degree will go into default on their student loans
The amount of student loan debt a person has tends to correlate with how advanced their highest degree is
The government offers several income-driven repayment plans designed to help low-income borrowers avoid defaulting on their loans. You may also benefit from consolidating your loans. This process combines multiple monthly bills into one, potentially making it easier to stay on top of repayments. Note that consolidating can result in losing any credit you’ve earned toward forgiveness programs like Public Service Loan Forgiveness. If you feel your interest rate is simply too high, you can also try refinancing

If you are deciding whether to pay off your student loans or invest, or simply struggling with your loan payments or looking for ways to make repayment easier, you have options.

  • The government offers several income-driven repayment plans designed to help low-income borrowers avoid defaulting on their loans.
  • You may also benefit from consolidating your loans. This process combines multiple monthly bills into one, potentially making it easier to stay on top of repayments. Note that consolidating can result in losing any credit you’ve earned toward forgiveness programs like Public Service Loan Forgiveness.
  • If you feel your interest rate is simply too high, you can also try refinancing your loans through a private bank. If you do so, note that you’ll lose the protections that come with federal loans.

Having a discussion with a recent grad regarding their financial options can be difficult, so Personal Capital has compiled some Tips for Parents Talking to Recent Grads About Money that may help. 

Invest wisely with an Empower Investment Account

Get Started

1 Brookings, Yilla, Kadija and Wessel, David, “Five facts about student loans,” November 2019.

2 U.S. Census Bureau, Guzman, Gloria, “Household Income: 2018,” September 2019.

3 Pew Research Center, Cilluffo, Anthony, “Five Facts about Student Loans,” August 2019.

4 U.S. Department of Education, “Federal Student Loan Portfolio,” December 2019.

5 Pew Research Center, Cilluffo, Anthony, “Five Facts about Student Loans,” August 2019.  

6 Federal Reserve Bank of New York, “Who Is More Likely to Default on Student Loans?” November 2017.

Latest Empower Insights

View All
Carefully consider the investment option’s objectives, risks, fees and expenses. Contact Empower Retirement for a prospectus, summary prospectus for SEC-registered products or disclosure document for unregistered products, if available, containing this information. Read each carefully before investing.

Securities offered and/or distributed by GWFS Equities, Inc., Member FINRA/SIPC. GWFS is an affiliate of Empower Retirement, LLC; Great-West Funds, Inc.; and registered investment advisers, Advised Assets Group, LLC and Personal Capital. This material is for informational purposes only and is not intended to provide investment, legal or tax recommendations or advice. 

IMPORTANT: The projections, or other information generated on the website by the investment analysis tool regarding the likelihood of various investment outcomes, are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. The results may vary with each use and over time.

Insurance products are issued by or offered through Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: New York, NY. Guarantees are subject to the terms and conditions of the contract and the claims-paying ability of the insurer.

The Empower Institute is a research group within Empower Retirement, LLC.

All features may not currently be available and are subject to change without notice. ©2021 Empower Retirement, LLC. All rights reserved.

Unless otherwise noted: Not a Deposit | Not FDIC Insured | Not Bank Guaranteed | Funds May Lose Value | Not Insured by Any Federal Government Agency.