What Is the Average Debt After College? A Primer for 2025

The average student in the US starts their career with over $30,000 in debt—a significant figure that could determine a greater part of their financial life. 

For many graduates, student loans have transformed the dream of higher education into a prolonged debt challenge. What was once seen as a stepping stone to success has now become a burden, leaving students wondering if it was worth it. 

While student loans aren’t exactly the problem here, understanding how this debt accumulates and how it affects you can provide a basis for better choices, planning, and policy solutions.

Keep reading to find out the average student loan debt after college and tips on how to use these numbers to your benefit. 

Key Takeaways 

• The national student loan debt after college is at least $30,000.
• Private loans cost more than federal loans, which explains why the average private student loan debt is over $50,000.
• The average debt after college can vary depending on stage, gender, race, and choice of school.
• Compared to most educational programs, associate degrees cost less, with an average cost of $15,000. 

National Average Student Debt At Graduation

As of Q4 2024, the average student loan debt per borrower was $38,375. This figure varies significantly depending on the type of loan, the borrower’s location, and their demographic profile. 

Federal vs. Private Student Loans 

When breaking it down, federal loans dominate the debt landscape. The average federal student loan debt hovers around $37,700, offering more flexible repayment options and lower interest rates compared to private loans. 

However, for those relying on private student loans, the debt burden can be much higher, with the average private loan debt exceeding $54,921. This wide gap between federal and private loans is explained by the huge differences in interest rates and borrower protection. 

State-by-State Variations

Student loan debt isn’t even distributed across the US. States like New Hampshire, Pennsylvania, and Connecticut consistently report the highest average college student debt, with graduates in these areas owing over $40,000 on average. 

States like Utah and California, on the other hand, have some of the lowest debt averages, often under $20,000, due to lower tuition costs and more. These variations by state make it vital to consider a college’s location when determining higher education costs. 

Race and Gender Variations

Race and gender disparities in student loans arise from various factors. 

Black graduates, for instance, face the highest debt levels, often owing $25,000 more than white fellows. This can be due to lower access to scholarships or less generational wealth. 

Women hold about two-thirds of all student loan debt in the US and typically earn less than men. Depending on the state, this gap can be up to 21.8%, which can make it harder to repay loans quickly. 

Average College Debt Vs. Different Degree Types 

The type of degree largely influences how much loan a graduate takes on, based on program costs, duration, and earning potential. Here, we’ll highlight the average student debt for other academic programs with varying durations. 

Associate Degree

Students earning an associate degree tend to have the lowest average debt, often ranging between $10,000 and $15,000. This is because community colleges and similar institutions have lower tuition costs. 

Also, many students in these programs live at home or work while studying, further reducing their reliance on loans. 

Bachelor’s Degree

Graduates with a bachelor’s degree carry an average debt of approximately $28,000 to $38,000, depending on whether they attended a public or private institution. This level of debt can be explained by the rising costs of four-year programs, especially at out-of-state or private universities.

Bachelor’s degrees account for the majority of student loans, as these programs are a primary pathway for entering professional careers. 

Master’s Degree 

The average student debt for those pursuing a master’s degree rises to approximately $71,000. These programs are often pursued to advance careers or specialize in fields like business, education, or public administration. 

However, the high costs and the necessity of taking out additional loans mean that students must carefully understand their options and consider if the risk is worth the investment. 

Professional Degrees

Professional Degrees, such as those in law, medicine, or dentistry, come with some of the highest debt levels. 

• Medical graduates: ~$200,000
• Law school graduates: ~$150,000
• Dental graduates: ~$300,000

These high costs are due to the longer duration and higher tuition fees of these programs. 

Doctoral Degrees (Ph.D.)

For Ph.D. programs, the average debt is around $110,000, though it varies widely by field. STEM disciplines, for example, often provide stipends or funding, resulting in lower debt levels. However, those in the humanities or social sciences frequently rely on loans, accumulating huge debt. 

Conversations Around Student Loans and Affordability

As the Trump administration begins its 2025 term, significant shifts in student loan policies and discussions around affordability are emerging. These developments are poised to impact millions of student loan borrowers across the US. Let’s look at some of these developments. 

• Rollback of SAVE Plan: The administration is considering eliminating or modifying the Saving on a Valuable Education (SAVE) plan, which reduced student loan payments for many borrowers.

• Stricter Income-Driven Repayment Plans: Proposed changes could increase repayment amounts and limit forgiveness options for borrowers enrolled in income-driven plans. 

• Revised PSLF Terms and Buyback: Public Service Loan Forgiveness rules may become more restrictive, narrowing eligibility for loan cancellation. 

• Privatization of Student Loans: A shift toward privatizing the federal loan system may reduce government involvement, potentially raising costs for borrowers. 

You can read more about these developments in our latest student loan news. 

Putting All Together and Managing Your Student Loan Debt After College

With student loan policies changing rapidly, like the cancellation of Biden’s plan B student loan forgiveness proposal, graduates must adapt quickly and apply steps to exit their debt effectively. We’ve provided some tips below to help with this. 

• Understand Your Loans: Review the types of loans you have: federal or private. Also, understand your repayment terms, interest rates, and other benefits available to you. 

• Choose the Right Repayment Plan: For federal student loans, assess your eligibility for income-driven plans, but prepare for potential changes in terms. Private loan borrowers can also consider refinancing options. 

• Pay Off High-Interest Loans: Focus on paying off high-interest loans first to save on overall costs. Methods like the snowball or avalanche can be effective here. 

• Use Tax Deductions: You can deduct up to $2,500 annually on student loan interest if you meet income requirements. We’ve written a comprehensive guide on student loan tax deductions, but you should still consult with a tax advisor.

• Avoid Increasing Financial Burdens: Avoid taking on additional debt, such as credit cards or personal loans, during repayment. Stick to a budget that prioritizes loan payments. 

• Check for Updates: Policies are always changing, so it helps to have access to information on these changes and how you’re affected. To stay updated, you can always check out the SLP news section. 

Access Better Student Loan Management Options with SLP 

Every year, more college students quickly pile up debts without any valid plan for an early exit. We recognize that no one wants to be in debt, and we offer valuable insights to help students resolve their debt situations swiftly.

Student loan debt can help reduce the burden of educational expenses. However, ensure you consult with professionals who can provide you guidance on creating and following a repayment plan. 

You can consult with Student Loan Professor to get the best management and repayment plans. We also provide a refinance assessment for all students at no cost.