An average student loan payment in the US is $500 while the average debt among recent pass-out graduates is $30,000.
This may sound a bit off but this is what the current data shows. This amount depends on a lot of factors but you do not need to pay the amount until you complete your school or college.
Here is a complete analysis of the current student loan payment data, etc.
Average Student Loan Payments
The average student loan payment depends on various factors, the most important among them is the type of loan i.e. whether it’s a federal loan or a private loan.
Apart from this, the other factors affecting student loan payments are:
- College cost
- Type of Degree
- Repayment plan
- Interest rate
Average Monthly Student Loan Payments
Student’s income is an important factor to consider while determining the monthly loan payment, while the repayment timeline, interest rate, and loan amount will all add to the loan paying capacity.
Here are some insights of the past trends:
Average Student Loan Payments (Inflation-Adjusted)
- 2016: $393 → $502 (adjusted for inflation)
- 2005: $227 → $356 (adjusted for inflation)
Debt Repayment & Income Guidelines
- The 50-20-30 rule suggests that 20% of gross income (GI) should go toward debt payments.
- $502 monthly = 10% of a $60,240 annual GI
- $356 monthly = 10% of a $42,720 annual GI
- The 28/36 rule sets 36% of income as the maximum for debt payments.
- $502 monthly = 36% of the $16,733 annual GI
- $356 monthly = 36% of the $11,867 annual GI
Loan Repayment Trends
- Average starting salary for new graduates: $60,028
- 10% of this salary: $500/month
- Federal standard repayment plan: 10-year fixed timeline
- 43% of borrowers use the standard 10-year (or less) repayment plan
- Common federal student loan interest rate: ~5.50%
Student Loan Debt Distribution
- Average outstanding federal student loan debt per borrower: $37,853
- Debt breakdown among borrowers:
- 52.6% owe $20,000 or less
- 32.1% owe $10,000 or less
- 15.0% owe less than $5,000
- 20.6% owe $10,000 – $20,000
- 18.1% owe $40,000 – $100,000
- 7.5% owe $100,000 or more
- 2.2% owe over $200,000
Federal vs. Private Student Loan Payment Comparison (5.50% vs. 9.00% APR, $500 Monthly Payment)
| Average Debt | Repayment Term (Federal – 5.50% APR) | Ultimate Cost (Federal – 5.50% APR) | Repayment Term (Private – 9.00% APR) | Ultimate Cost (Private – 9.00% APR) |
| $30,000 | 5 yrs 11 mos | $35,162 | 6 yrs 8 mos | $38,750 |
| $35,000 | 7 yrs 1 mo | $42,303 | 7 yrs 9 mos | $47,780 |
| $40,000 | 8 yrs 4 mos | $49,942 | 9 yrs 1 mo | $57,248 |
| $45,000 | 9 yrs 9 mos | $58,156 | 10 yrs 6 mos | $66,910 |
| $55,000 | 12 yrs 10 mos | $76,705 | 14 yrs 3 mos | $91,520 |
Federal vs. Private Student Loan Comparison (6.53% vs. 9.00% APR, 10-Year Term, $77,636 GI)
| Monthly Payment | % of Income (Median $77,636 GI) | Average Debt | Ultimate Cost (Federal – 6.53% APR) | Ultimate Cost (Private – 9% APR) |
| $326 | 5.0% | $30,000 | $41,154 | $46,228 |
| $380 | 5.9% | $35,000 | $47,346 | $53,900 |
| $434 | 6.7% | $40,000 | $53,538 | $61,571 |
| $488 | 7.5% | $45,000 | $59,730 | $69,242 |
| $597 | 9.2% | $55,000 | $71,114 | $82,585 |
Federal vs Private Student Loan Interest Rates
Before understanding the loan payment estimate and getting into the critical calculations, let’s first see the varying interest rates of the Federal and Private loans.
Federal Student Loan Overview (2024-2025 Rates)
- 5.50% – Interest rate for Direct Subsidized and Unsubsidized federal loans (undergraduate borrowers).
- 10-year repayment plan is the standard for most borrowers.
Private Student Loans
Unlike federal loans, private loans vary in interest rates, with rates ranging from 4% to 16%.
The private loan interest rate depends on creditworthiness, loan amount, and time period of the repayment.
Before getting into a private loan, one must know that:
- Higher rates: Most borrowers receive 9% APR or higher if they don’t qualify for the best rates.
- Longer repayment terms: Private loans often extend beyond 10 years, increasing total repayment costs.
Student Loan Payment Estimate Based on Degree
The loan amount majorly depends on the type of degree you are pursuing. The loan amount is usually less for the undergraduate as compared to a graduate or a student pursuing a graduate.
- Undergraduate
- Associate Degree
- Graduate
- Masters
- Doctoral
- Medical
- Law
Undergraduate
To understand how much you will end up repaying your loan by the end of your college education, here is the complete calculation with a comparison of federal and private interest loans.
Graduate Salaries (Bachelor’s Degree Holders)
- Low-end starting salary: $58,849
- Median salary: $77,636
- High-end salary: $86,964
Average Federal Student Debt by Institution Type
- Public institutions: $23,390
- Private nonprofit institutions: $26,720
- Private for-profit institutions: $34,740
Payments on a Low-End Starting Salary
(5.50% APR Federal Loan, 9.00% APR Private Loan, $58,849 Gross Income)
| Monthly Payment | % of Income | Average Debt | Repayment Term (Federal – 5.50% APR) | Ultimate Cost (Federal – 5.50% APR) | Ultimate Cost (Private – 9.00% APR) |
| $490 | 10.0% | $23,390 | 4 yrs 6 mos | $26,457 | $28,390 |
| $490 | 10.0% | $26,720 | 5 yrs 3 mos | $30,817 | $33,290 |
| $490 | 10.0% | $34,740 | 7 yrs 2 mos | $42,108 | $46,785 |
| $254 | 5.2% | $23,390 | 10 yrs | $30,461 | $35,121 |
| $290 | 5.9% | $26,720 | 10 yrs | $34,798 | $40,095 |
| $377 | 7.7% | $34,740 | 10 yrs | $45,242 | $52,121 |
Payments on an Average Starting Salary
(5.50% APR Federal Loan, 9.00% APR Private Loan, $77,636 Gross Income)
| Monthly Payment | % of Income | Average Debt | Repayment Term (Federal – 5.50% APR) | Ultimate Cost (Federal – 5.50% APR) | Ultimate Cost (Private – 9.00% APR) |
| $647 | 10.0% | $23,390 | 3 yrs 4 mos | $25,631 | $27,840 |
| $647 | 10.0% | $26,720 | 3 yrs 10 mos | $29,689 | $32,570 |
| $647 | 10.0% | $34,740 | 5 yrs 2 mos | $39,969 | $44,590 |
| $254 | 3.9% | $23,390 | 10 yrs | $30,461 | $35,121 |
| $290 | 4.5% | $26,720 | 10 yrs | $34,798 | $40,095 |
| $377 | 5.8% | $34,740 | 10 yrs | $45,242 | $52,121 |
Associate Degree
- Student Loan Debt by Institution Type
- Public institutions: 31% of graduates take on student loans.
- Private nonprofit schools: 77% of students borrow for tuition.
- Private for-profit schools: 91% rely on student loans.
- Average Student Debt (Federal Loan Borrowers)
- Public institutions: $14,890
- Private nonprofit institutions: $25,770
- Private for-profit institutions: $24,090
- Earnings Potential
- Median salary: $55,016
- Low-end salary: $36,520
Payments on a Low-End Starting Salary (5.50% APR Federal, 9.00% APR Private, $36,520 GI)
| Monthly Payment | % of Income | Average Debt | Repayment Term (Federal – 5.50% APR) | Ultimate Cost (Federal – 5.50% APR) | Repayment Term (Private – 9.00% APR) | Ultimate Cost (Private – 9.00% APR) |
| $304 | 10.0% | $14,890 | 4 yrs 8 mos | $16,902 | 5 yrs 3 mos | $18,670 |
| $304 | 10.0% | $25,770 | 9 yrs | $32,700 | 11 yrs 2 mos | $39,880 |
| $304 | 10.0% | $24,090 | 8 yrs 3 mos | $30,002 | 10 yrs 8 mos | $36,712 |
| $162 | 5.3% | $14,890 | 10 yrs | $19,391 | 12 yrs 1 mo | $23,620 |
| $280 | 9.2% | $25,770 | 10 yrs | $33,561 | 12 yrs 6 mos | $42,750 |
| $261 | 8.6% | $24,090 | 10 yrs | $31,373 | 12 yrs 3 mos | $39,670 |
Payments on an Average Starting Salary (5.50% APR Federal, 9.00% APR Private, $55,016 GI)
| Monthly Payment | % of Income | Average Debt | Repayment Term (Federal – 5.50% APR) | Ultimate Cost (Federal – 5.50% APR) | Repayment Term (Private – 9.00% APR) | Ultimate Cost (Private – 9.00% APR) |
| $458 | 10.0% | $14,890 | 3 yrs | $16,161 | 3 yrs 7 mos | $17,890 |
| $458 | 10.0% | $25,770 | 5 yrs 6 mos | $29,872 | 7 yrs 2 mos | $35,870 |
| $458 | 10.0% | $24,090 | 5 yrs 1 mo | $27,629 | 6 yrs 11 mos | $33,470 |
| $162 | 3.5% | $14,890 | 10 yrs | $19,391 | 12 yrs 1 mo | $23,620 |
| $280 | 6.1% | $25,770 | 10 yrs | $33,561 | 12 yrs 6 mos | $42,750 |
| $261 | 5.7% | $24,090 | 10 yrs | $31,373 | 12 yrs 3 mos | $39,670 |
Graduate
Students willing to take a loan for their graduate degree usually face a higher interest rate and loan amount.
This results in higher either, a higher loan amount payment per month or a longer repayment timeline.
- Federal Student Loan Interest Rates (2024-2025):
- 7.05% – Direct Unsubsidized Loans (Graduate & Professional Borrowers)
- 8.05% – Direct PLUS Loans (For Graduate Students & Parents of Undergraduates)
- Graduate Student Debt Statistics
- 48% of graduate degree holders have student loan debt.
- 54% carry both undergraduate & graduate student loan debt.
Comparison of Graduate Loan Payments: Federal vs. Private Loans
(Assuming 7.05% APR for federal loans and 10.50% APR for private loans)
| Monthly Payment | % of Income | Average Debt | Federal Loan Term (7.05% APR) | Ultimate Cost (Federal Loan) | Private Loan Term (10.50% APR) | Ultimate Cost (Private Loan) |
| $725 | 12.0% | $60,000 | 10 yrs | $86,968 | 12 yrs 3 mos | $107,450 |
| $900 | 14.9% | $75,000 | 10 yrs | $108,710 | 13 yrs 1 mo | $135,320 |
| $1,080 | 17.8% | $90,000 | 10 yrs | $130,453 | 14 yrs 5 mos | $162,910 |
| $1,320 | 21.7% | $110,000 | 10 yrs | $159,552 | 15 yrs 6 mos | $203,780 |
| $1,620 | 26.5% | $135,000 | 10 yrs | $195,678 | 17 yrs 2 mos | $249,310 |
Masters Degree
The median salary of a master’s graduate in the US as per the latest stats is $90,324. While the average debt will be $76,360 taken from a private institution.
However, a master’s degree holder can easily pay a monthly loan amount compared to an undergrad or associate.
The repayment amount for a student pursuing a master’s depends on the salary level, interest rate, and loan amount.
- Student Debt by Institution Type
- $58,640 – Average debt for public institution graduates
- $52,040 – Average debt for private, nonprofit institution graduates
- $76,360 – Average debt for private, for-profit institution graduates
- Salary Expectations for Master’s Graduates
- $90,324 – Median annual salary
- $44,040 – Low-end salary
Federal loans (7.05% APR) offer lower rates and income-driven repayment options, and private loans (10.50% APR) can significantly increase total repayment costs.
Loan Payments on a Low-End Salary (7.05% APR, $44,040 GI)
| Monthly Payment | % of Income | Average Debt | Federal Loan Term (7.05% APR) | Ultimate Cost (Federal Loan) | Private Loan Term (10.50% APR) | Ultimate Cost (Private Loan) |
| $367 | 10.0% | $58,640 | 39 yrs 9 mos | $174,941 | 25 yrs 2 mos | $276,130 |
| $367 | 10.0% | $52,040 | 25 yrs 6 mos | $112,156 | 21 yrs 8 mos | $194,500 |
| $682 | 18.5% | $58,640 | 10 yrs | $81,885 | 14 yrs 3 mos | $134,750 |
| $889 | 24.2% | $76,360 | 10 yrs | $106,629 | 18 yrs 1 mo | $177,960 |
Loan Payments on an Average Salary (7.05% APR, $90,324 GI)
| Monthly Payment | % of Income | Average Debt | Federal Loan Term (7.05% APR) | Ultimate Cost (Federal Loan) | Private Loan Term (10.50% APR) | Ultimate Cost (Private Loan) |
| $753 | 10.0% | $58,640 | 8 yrs 9 mos | $78,619 | 12 yrs 7 mos | $126,220 |
| $753 | 10.0% | $52,040 | 7 yrs 5 mos | $66,962 | 11 yrs 5 mos | $107,850 |
| $889 | 11.8% | $76,360 | 10 yrs | $106,629 | 16 yrs 3 mos | $165,450 |
Doctorate Degree
Earning a Doctoral or Professional degree often comes with a significant financial burden, especially for graduates of private institutions. In many cases, the average debt for a Professional degree holder is comparable to the average medical school debt.
- Doctoral Degree Debt by Institution Type
- $160,530 – Average debt for a public institution graduate
- $212,430 – Average debt for a private, nonprofit institution graduate
- $165,960 – Average debt for a private, for-profit institution graduate
- Professional Degree Debt & Salary Expectations
- $178,800 – Average debt for Professional degree holders
- $114,712 – Median annual salary
- $76,530 – Low-end salary
- Doctoral Degree Salary Expectations
- $109,668 – Median annual salary
- $57,490 – Low-end salary
Doctoral Degree Loan Repayment Challenges
Graduates with Doctoral degrees often face high debt burdens, making repayment difficult, especially for those with low-end salaries. The following breakdown compares monthly payments as a percentage of income for graduates with different debt levels.
Loan Repayments on a Low-End Salary ($57,490 GI, 7.05% APR)
| Monthly Payment | % of Income | Average Debt | Repayment Term | Ultimate Cost |
| $479 | 10.0% | $160,530 | N/A | N/A |
| $479 | 10.0% | $212,430 | N/A | N/A |
| $479 | 10.0% | $165,960 | N/A | N/A |
| $1,868 | 39.0% | $160,530 | 10 years | $224,163 |
| $2,472 | 51.6% | $212,430 | 10 years | $296,636 |
| $1,931 | 40.3% | $165,960 | 10 years | $231,746 |
Loan Repayments on an Average Salary ($109,668 GI, 7.05% APR)
| Monthly Payment | % of Income | Average Debt | Repayment Term | Ultimate Cost |
| $914 | 10.0% | $160,530 | N/A | N/A |
| $914 | 10.0% | $212,430 | N/A | N/A |
| $914 | 10.0% | $165,960 | N/A | N/A |
| $1,868 | 20.4% | $160,530 | 10 years | $224,163 |
| $2,472 | 27.0% | $212,430 | 10 years | $296,636 |
| $1,931 | 21.1% | $165,960 | 10 years | $231,746 |
Professional Degree Loan Repayment Analysis
Graduates with Professional degrees (e.g., law, medicine, dentistry) often accumulate substantial debt, making repayment a long-term financial commitment. Below is a breakdown of how monthly payments compare to income at different salary levels.
Loan Repayments on a Low-End Salary ($76,530 GI, 7.05% APR)
| Monthly Payment | % of Income | Average Debt | Repayment Term | Ultimate Cost |
| $638 | 10.0% | $178,800 | N/A | N/A |
| $2,081 | 32.6% | $178,800 | 10 years | $249,676 |
Loan Repayments on an Average Salary ($114,712 GI, 7.05% APR)
| Monthly Payment | % of Income | Average Debt | Repayment Term | Ultimate Cost |
| $956 | 10.0% | $178,800 | N/A | N/A |
| $2,081 | 21.8% | $178,800 | 10 years | $249,676 |
Medical Degree
Medical degrees are among the most expensive professional degrees, requiring a longer repayment period. Below is a breakdown of how monthly payments compare to income at different career stages.
Loan Repayments on a First-Year Resident Salary ($63,400 GI, 7.05% APR)
| Monthly Payment | % of Income | Average Debt | Repayment Term | Ultimate Cost |
| $528 | 10.0% | $199,220 | N/A | N/A |
| $2,321 | 44.0% | $199,220 | 10 years | $278,469 |
Loan Repayments on a General Physician/Surgeon Salary ($239,200 GI, 7.05% APR)
| Monthly Payment | % of Income | Average Debt | Repayment Term | Ultimate Cost |
| $1,993 | 10.0% | $199,220 | N/A | N/A |
| $2,321 | 11.6% | $199,220 | 10 years | $278,469 |
Loan Repayments on an Anesthesiologist Salary ($339,470 GI, 7.05% APR)
| Monthly Payment | % of Income | Average Debt | Repayment Term | Ultimate Cost |
| $2,829 | 10.0% | $199,220 | N/A | N/A |
| $2,321 | 8.2% | $199,220 | 10 years | $278,469 |
Law School
Law school graduates face high student loan debt, but federal and private loans differ significantly in interest rates, repayment options, and total costs.
Below is a direct comparison to highlight the impact of federal vs. private loans on repayment.
Loan Repayments on a New Lawyer’s Starting Salary ($70,000 GI, 7.05% APR for Federal, 9.50% APR for Private Loans)
| Loan Type | Monthly Payment | % of Income | Average Debt | Repayment Term | Ultimate Cost |
| Federal Loan (7.05% APR) | $583 | 10.0% | $140,870 | N/A | N/A |
| Private Loan (9.50% APR) | $634 | 10.9% | $140,870 | N/A | N/A |
| Federal Loan (10-Year Plan) | $1,639 | 28.1% | $140,870 | 10 years | $196,710 |
| Private Loan (10-Year Plan) | $1,833 | 31.4% | $140,870 | 10 years | $219,960 |
Loan Repayments on an Experienced Lawyer’s Salary ($145,300 GI, 7.05% APR for Federal, 9.50% APR for Private Loans)
| Loan Type | Monthly Payment | % of Income | Average Debt | Repayment Term | Ultimate Cost |
| Federal Loan (7.05% APR, 10-Year Plan) | $1,639 | 13.5% | $140,870 | 10 years | $196,710 |
| Private Loan (9.50% APR, 10-Year Plan) | $1,833 | 15.1% | $140,870 | 10 years | $219,960 |
Loan Repayments on a Senior Attorney’s High-End Salary ($186,350 GI, 7.05% APR for Federal, 9.50% APR for Private Loans)
| Loan Type | Monthly Payment | % of Income | Average Debt | Repayment Term | Ultimate Cost |
| Federal Loan (7.05% APR, 10-Year Plan) | $1,639 | 10.6% | $140,870 | 10 years | $196,710 |
| Private Loan (9.50% APR, 10-Year Plan) | $1,833 | 11.8% | $140,870 | 10 years | $219,960 |
Calculation of Student Loan Payment
Not all will be taking a $30,000 loan. Almost 20% of students have to pay $10,000-$20,000 loan amount, this itself is huge.
Let’s check how much you need to pay for different loan amounts.
$10,000 Student Loan Payment
| Repayment Term | Federal Loan (7.05% APR) | – | Private Loan (9.50% APR) | – | Difference |
| Monthly Payment | Total Cost | Monthly Payment | Total Cost | Extra Cost with Private Loan | |
| 5 Years | $198 | $11,854 | $210 | $12,607 | +$753 |
| 10 Years | $117 | $14,026 | $130 | $15,608 | +$1,582 |
| 15 Years | $90 | $16,147 | $105 | $18,836 | +$2,689 |
$20,000 Student Loan Payment
| Repayment Term | Federal Loan (7.05% APR) | – | Private Loan (9.50% APR) | – | Difference |
| Monthly Payment | Total Cost | Monthly Payment | Total Cost | Extra Cost with Private Loan | |
| 5 Years | $396 | $23,708 | $420 | $25,214 | +$1,506 |
| 10 Years | $234 | $28,052 | $260 | $31,216 | +$3,164 |
| 15 Years | $180 | $32,294 | $210 | $37,672 | +$5,378 |
$30,000 Student Loan Payment
| Repayment Term | Federal Loan (7.05% APR) | – | Private Loan (9.50% APR) | – | Difference |
| Monthly Payment | Total Cost | Monthly Payment | Total Cost | Extra Cost with Private Loan | |
| 5 Years | $594 | $35,561 | $630 | $37,821 | +$2,260 |
| 10 Years | $351 | $42,078 | $390 | $46,824 | +$4,746 |
| 15 Years | $270 | $48,441 | $315 | $56,508 | +$8,067 |
$50,000 Student Loan Payment
| Repayment Term | Federal Loan (7.05% APR) | – | Private Loan (9.50% APR) | – | Difference |
| Monthly Payment | Total Cost | Monthly Payment | Total Cost | Extra Cost with Private Loan | |
| 5 Years | $990 | $59,269 | $1,050 | $63,035 | +$3,766 |
| 10 Years | $585 | $70,129 | $650 | $78,040 | +$7,911 |
| 15 Years | $450 | $80,736 | $525 | $94,180 | +$13,444 |
FAQs
Average Time It Takes To Pay Off A Student Loan?
The average time it takes to pay off a student loan is 20 years. Most of the students opt for a 10-years loan repayment plan.
How to Lower Your Student Loan Payment?
The best option to lower your loan payment is to switch to a different student loan repayment plan. Try to opt for Income-driven repayment, which will eventually decrease your loan repayment burden.
Sources
- Opers – 50-20-30 Rule
- Investopedia – 28/36 Rule
- The Fed – Report on the Economic Well-Being of U.S. Households in 2018 – May 2019
- The Fed – Report on the Economic Well-Being of U.S. Households in 2016 – May 2017
- CNBC – How Much the Average Student Loan Borrower Owes When they Graduate
- Federal Student Aid – Interest Rates
- Federal Student Aid – Federal Student Loan Portfolio
- Business Insider – Private Interest Rates
- Investopedia – Student Loan Interest Rate
- Bank Loan Calculator
- CNBC – New college graduates are overestimating their starting salaries by $30,000
- Nerd Wallet, 14 Best Private Student Loans
- U.S. News & World Report, Law School Benefits Versus Price
Contents
- 1 Average Student Loan Payments
- 2 Federal vs Private Student Loan Interest Rates
- 3 Student Loan Payment Estimate Based on Degree
- 4 Calculation of Student Loan Payment
- 5 FAQs