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.
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.