The first student loan debt fact you should know is how much your average borrower owes. The average student loan balance varies by state and age group. You can also learn about the delinquency rate of direct student loan debt. This information can help you make informed decisions about your loan payments. Here are some other student loan debt facts that you may find interesting. In addition, you should be aware of the average loan balance, the age group at which most borrowers default, and the Delinquency rate for direct student loans.

Average student loan debt

Today, the average student loan debt is over $37,000 and rising, thanks to tuition increases and increased costs of living. With this, more students are taking out loans to pay for college, often not considering the true cost of their education. However, there are ways to achieve a college degree without accumulating massive debt. Here are some strategies to avoid getting sunk under this enormous debt. Listed below are three of the most effective strategies.

First, consider the age of the borrower. Students from higher-income families are less likely to be in debt after graduating from college. In fact, those from high-income families had 11 percentage points lower average student loan debt than students from low-income families. Finally, remember that women have a higher percentage of debt than men. This means that while the average student loan debt balance grows every 12 months, it can reach $18,000 in just a few years, which is far higher than the median for all borrowers.

The average debt per graduate at graduation varies by type of college. For public colleges, it was $27,700. For private for-profit institutions, it was $41,000. And students who obtained Associate’s degrees had an average debt of $19,600. Those with a Bachelor’s degree owed an average of $29,900. Of course, this figure does not include parent PLUS loans and parent loans for other children.

Taking on a large debt is not a good idea unless you can handle it. Rather, aim for a debt that’s manageable, which is roughly 10% of your expected income. For instance, if you’re planning to earn a $50,000 annual salary, your monthly payment should be no more than $279. This figure is still too high, but it’s more manageable than a student loan that is twice as much as the average income for a new bachelor’s degree.

According to the U.S. Federal Reserve, the average student loan debt was $28,800 last year. However, the actual amount varies, based on the type of education. Graduate degrees, for example, cost more and require longer repayment. Additionally, the average debt per household is higher than that of undergraduates, so a graduate degree means higher debt, which is accompanied by higher interest rates. However, federal student loans carry an average interest rate of 2.75% for the 2020-to-2021 school year, which is lower than the national average.

Average student loan balance in different states

The average student loan balance differs widely by state. The average balance in Republican states is $27,902, while the average balance in blue states is $30,447. This trend suggests that many people take out IDR loans for graduate school. However, the average IDR balance varies widely from state to state, ranging from $47,800 in Kentucky to $93,400 in Washington, D.C. In addition, the average balance in California, Hawaii, Maryland, New York, Vermont, and Massachusetts is over $60,000.

According to Experian, average individual balances in different states are projected to grow by more than nine percent by 2020. While average individual balances remained flat or even decreased in some states, growth was seen in 28 of those states. The most notable states had average balances more than nine percent higher than the national average. Clearly, students in these states will have to find ways to reduce their monthly payments while still paying for college.

Despite differences in debt levels, the state with the lowest average student loan balance is Utah. With just 32% of graduates carrying student loan balances, the state of Utah has the lowest average student loan balance. Other jurisdictions with low student loan balances include Oregon, Hawaii, Indiana, and Wyoming. These data are useful to determine the affordability of higher education for those who wish to pursue a career in one of these areas.

As you can see, there are many reasons for this variation in student loan debt. For instance, the largest age group with the highest average student loan debt is 25 to 34-year-olds. In addition, the average debt load for adults in New Hampshire is over $39,000. While the average student loan balance is still comparatively low, the most common reason for a huge difference in student loan debt is socioeconomic factors.

The average student loan balance varies by state, with the District of Columbia and Maryland having the highest average balances per borrower. Interestingly, Iowa and North Dakota have the lowest average student loan debt per borrower. While the average debt per borrower is nearly $37,000 in Maryland, North Dakota, the average balances of students in these states differ significantly. So, where does a borrower choose to live?

Average student loan balance in different age groups

The number of Americans with an outstanding student loan balance is growing. As of March 2019, the average student loan balance was $1.5 trillion, an increase of nearly two-thirds since 2004. These numbers are even higher among older borrowers – people over age 60 had their balance increase by 1,256% in the same period. Black students and people over age 50 are among the groups with the highest levels of outstanding student debt. Meanwhile, an average bachelor’s degree holder now has a balance of about $76,400, and a fifth of young adults with a technical degree owe around $31,000.

While age does play a role in debt level, a large portion of a student’s debt is owed by those who are between the ages of 30 and 49. Individuals aged between 30 and 39 are the most likely to have an outstanding student loan balance of $26,000, followed by those between 50 and 61. However, these averages only take a snapshot of the debt levels of college graduates and do not reflect the situation of borrowers of a particular age group.

Despite its importance, the average balance of borrowers does not explain the differences in average debt levels. The number of borrowers is a major factor, but it isn’t enough to fully explain the differences between age groups. The number of borrowers, as well as the average loan balance, also influence the amount a borrower owes. The number of borrowers per age group is also an important contextual piece of information. The higher the number of people in one age group, the more likely they are to experience debt problems.

Despite the differences in total debt, it is noteworthy that younger borrowers will have lower average student loan balances in 2021 than their older counterparts. The decrease in debt owing by young borrowers is partially a result of the declining number of people attending college. While the young borrowers have a greater likelihood of repaying their loans, their older counterparts will have a harder time. Despite this disparity, however, it should not be forgotten that a high student loan debt burden is a major stressor for borrowers of all ages.

Delinquency rate for direct student loan debt

Recent data released by the Department of Education show that nearly one out of every three college students has some kind of student loan debt. Delinquency rates continue to rise, and the number of student loan borrowers that are delinquent or have fallen behind on payments is increasing. In 2012, thirty percent of student loan borrowers were delinquent. That’s up from twenty percent in 2008. However, the effective delinquency rate doesn’t include people who aren’t yet on the hook for repayment. In addition, the rate of delinquency is highest among those who are younger than 30.

The delinquency rate for direct student loans has stabilized, though it still hovers above 10 percent at the national level. This is in contrast with declining delinquency rates for mortgages and credit cards. In Texas, the delinquency rate for student loans was 12.8%, ranking ninth among all states. If you’re struggling to make payments on your loans, you should consider refinancing. Refinancing can help you save money on your monthly payments while still maintaining your current lifestyle.

A fully specified model captures more than half of all student loan delinquencies, and compares favorably with the “perfect” model. The “perfect” model would capture 100 percent of all student loan delinquencies in the riskiest quartile. On the other hand, a model that includes only student loan balances captures only 35 percent of delinquencies. The model is close to the 45 degree line, suggesting that student loan balances are only a marginal predictor of delinquency.

Federal student loan delinquency rates are a significant issue. Nearly 37 million Americans have returned to normal repayment after being on forbearance. A recent study by the Federal Reserve Bank of New York found that borrowers with FFEL loans were more likely to fall behind when payments resume in May. The federal student loan forbearance program lasted for two years and was a “pandemic,” which meant that delinquency rates rose despite the forbearance program. This crisis is a short-term solution to the issue.

Although the delinquency rate for direct student loan debt is high, it is still lower than the overall rate of default. Although delinquency rates of large loans are higher, delinquency rates for smaller loans have smaller direct effects on the student loan market. Using both measures of delinquency rates can help understand the state of student loan debt in the United States. There are no guarantees, but they do provide some insight into the current state of the market.