U.S. families owe a record median of $22,000 in student debt. As we inch closer to a final decision on loan forgiveness from the White House, using data from the latest Federal Reserve Survey on Consumer Finances, researchers at LendingTree’s Student Loan Hero took a fresh look at who has student loans and which communities are most burdened by debt.
Published on June 14, the analysis provides a window into the student debt portfolios of the American family, with a laser focus on family structure, race, education level, net worth, and employment status.
The full report is available here.
KEY TAKEAWAYS
- More than 1 in 5 U.S. families hold student loan debt. 21.4% of families owe student debt. This is down from 22.3% in 2016. These families owe a record median of $22,000, up from $20,210 in 2016.
- Couples without children have the largest amount of student loan debt ($35,000), while those younger than 55 who are single and without children carry the second-highest amount at $21,500.
- Black families borrow student loans at higher rates than other races — and they owe more. 30.2% of Black families hold student loan debt, versus 20.0% of white and 14.3% of Hispanic families. Meanwhile, Black families owe a median of $30,000, compared with $23,000 among white and $17,600 among Hispanic families.
- Many families where the reference person only has a high school degree or didn’t finish college still hold substantial amounts of student debt. Just more than a quarter (25.8%) of families where the economically dominant person didn’t finish college owe student loan debt, at a median of $15,700. Meanwhile, 11.8% of families where the reference person only has a high school diploma owe student loan debt, at a median of $14,000.
- The least wealthy Americans are most likely to hold student loan debt — and more of it. 36.0% of families in the bottom quartile of net worth owe a median of $32,000 in student loans. Meanwhile, 5.7% of families in the top 10% owe student debt, at a median of $20,000.
- Families in which the economically dominant person isn’t working owe the most student debt. These families owe a median of $30,000, compared with a median of $23,000 among families in which the reference person is working.
It’s still unclear when some form of student loan forgiveness will arrive at borrowers’ doorsteps, but if this data and/or our student debt policy experts could play a supporting role in any stories leading up to the announcement, we’re happy to provide commentary or insight.