Americans are grappling with approximately $1.6 trillion in student loan debt as of June 2024, a significant 42% increase from a decade ago. This rise coincides with more young adults attending college and an escalation in higher education costs.
Based on data from the Federal Reserve Board’s 2023 Survey of Household Economics and Decisionmaking, among other sources, a Pew Research Center analysis found that 1 in 4 U.S. adults under 40 are burdened with student loan debt.
This figure declines with age — 14% among those aged 40 to 49, and only 4% among those 50 and older. Student loans are predominantly held by those with at least a four-year college degree.
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The survey highlights disparities in debt levels based on education level. For instance, individuals who attended some college but did not earn a bachelor’s degree have median debts ranging from $10,000 to $14,999. Those with postgraduate degrees typically owe between $40,000 and $49,999.
The financial strain is particularly evident among younger borrowers, especially those aged 25 to 39 with student loans, who report greater financial hardship compared to their peers without debt.
Despite earning higher household incomes facilitated by higher education, about 35% of these indebted college graduates believe the financial costs of their education were not worth the benefits, compared to 16% of those without loans.
[KARAH RUCKER]
AS OF JUNE 2024, AMERICANS ARE GRAPPLING WITH A STAGGERING $1.6 TRILLION IN STUDENT LOAN DEBT, A 42% SURGE FROM A DECADE AGO. THIS SPIKE REFLECTS MORE YOUNG ADULTS ATTENDING COLLEGE AMID SOARING HIGHER EDUCATION COSTS.
A NEW PEW RESEARCH CENTER ANALYSIS HAS SHED LIGHT ON THIS GROWING BURDEN.
HERE’S A BREAKDOWN: ONE IN FOUR U.S. ADULTS UNDER 40 IS SADDLED WITH STUDENT LOAN DEBT. AS WE LOOK AT OLDER DEMOGRAPHICS, THE NUMBERS DROP—ONLY 14% OF THOSE AGED 40 TO 49 AND JUST 4% OF THOSE OVER 50 ARE PAYING OFF STUDENT LOANS.
THE DEBT LOAD VARIES SIGNIFICANTLY BY EDUCATION LEVEL. FOR INSTANCE, THE AVERAGE DEBT FOR SOMEONE WITH SOME COLLEGE BUT NO BACHELOR’S DEGREE HOVERS BETWEEN $10,000 AND $14,999.
BACHELOR’S DEGREE HOLDERS TYPICALLY OWE BETWEEN $20,000 AND $24,999, WHILE THOSE WITH POSTGRADUATE DEGREES FACE BETWEEN $40,000 AND $49,999.
ALARMINGLY, A QUARTER OF THESE POSTGRADUATE BORROWERS OWE UPWARDS OF $100,000.
THE FINANCIAL STRAIN IS PARTICULARLY SERIOUS FOR YOUNG GRADUATES. A QUARTER OF THOSE AGED 25 TO 39 WITH STUDENT LOANS ADMIT TO STRUGGLING FINANCIALLY, COMPARED TO JUST 9% OF THEIR PEERS WITHOUT LOANS.
ALTHOUGH HALF OF THE INDEBTED YOUNG GRADUATES EARN AT LEAST $100,000 ANNUALLY, THEIR INCOMES STILL TRAIL BEHIND THOSE WHO GRADUATED DEBT-FREE.
MANY OF THESE YOUNG BORROWERS QUESTION THE COST OF THEIR EDUCATION. ABOUT 35% BELIEVE THE FINANCIAL TOLL OF THEIR DEGREE WASN’T WORTH IT, CONTRASTING WITH THE 16% OF DEBT-FREE GRADUATES WHO FEEL THE SAME.
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