You’d be amazed to find out that there is more student loan debt in this country that the combined total of all credit card debts. Welcome to 2017, where more Americans are buried in student debt more than ever.
There are 44 million Americans who are still buried under student loan debts. These borrowers have a total student debt of $1.4 trillion. Among these borrowers, 11.2 percent are delinquent, with payments past 90 days or more on the due date.
For young adults ages 20 to 30 years old, the average monthly student debt payment is $351, the median monthly student loan payment is $203. A 2016 graduate alone owes an average of $37,172. That is 6 percent higher than the previous year.
Student Loan Debt, In Numbers
Student Loan hero has updated its statistics to the most recent numbers. This reflects that for the fourth quarter of 2016.
|Loan Program||Number of Borrowers||Owed Amount|
|Perkins||2.7 million||$ 7.9 billion|
|FFEL||16.4 million||$ 335.2 billion|
|Direct||31.5 million||$ 949.1 billion|
|Total (All Federal)||42.3||$1,291 billion|
APerkins Loan is a federal student loan program known for its low interest. The School is your lender, the interest rate is at 5 percent. This loan is subsidized by the federal government. The school puts in a share. The borrower will have to pay to the school.
The Federal Family Education Loan (FFEL) Program has four components. These are the Stafford Loans, Unsubsidized Stafford Loans, Federal PLUS Loans and Federal Consolidation Loans. It is a guaranteed-insured loan. Private lenders offer the loan, the federal government ensures this loan.
Beginning July 1, 2010, no new loans were made under this program. This is enacted through the Health Care and Education Reconciliation Act of 2010.
The Direct Loan Program, also known as the William D. Ford Federal Loan Program, provides student loans not only to students but to parents as well. It is designed to be low cost with a low-interest rate to help fund the student’s’ college education. Instead of a private lending provider or a bank, it is the US department of Education that stands as a lender.