Report Highlights. The average monthly student loan payment is an estimated $500 based on previously recorded average payments and median average salaries among college graduates.
The average borrower takes 20 years to repay their student loan debt.
42% of borrowers are on the standard 10 year or less plan with fixed payments.
The average outstanding federal student loan debt per borrower is $37,853.
52.6% of indebted borrowers owe $20,000 or less in federal student loans.
An appropriate monthly payment is based on multiple variables. The indebted student’s income is a significant factor in determining monthly payments. The total debt and interest rate as well as the borrower’s repayment timeline may all affect the dollar amount of their monthly payments.
In 2016, the average student loan payment was $393.
Adjusted for inflation, this is the equivalent of $502.
In 2005, the average student loan payment was $227; adjusted for inflation, this is equivalent to $356.
20% of your gross income (GI) should go toward paying off debts based on the 50-20-30 rule of finance.
$502 monthly payments are equivalent to 10% of a $60,240 annual GI; $356 monthly payments are 10% of $42,720.
36% of income is the maximum amount that should go toward paying off debt according to the 28/36 rule of finance.
$502 monthly payments are equivalent to 36% of a $16,733 annual GI; $356 monthly payments are equivalent to 36% of $11,867.
The average starting salary among all new graduates is $60,028.
10% of the mean starting salary is $500.
The standard repayment plan offered by the federal government has a 10 year timeline.
43% of borrowers are on the standard 10 year or less plan with fixed payments.
The most commonly used federal student loans have an interest rate closer to 5.50%.
The average outstanding federal student loan debt per borrower is $37,853.
52.6% of indebted borrowers owe $20,000 or less in federal student loans.
32.1% of indebted student borrowers owe $10,000 or less in federal student loans.
15.0% of borrowers owe less than $5,000.
20.6% of borrowers owe between $10,000 and $20,000 in student loans.
18.1% owe $40,000 to $100,000.
7.5% owe $100,000 or more.
2.2% owe in excess of $200,000.
Average New Graduate’s Loan Payments (5.50% APR, $500 Monthly Payment)
Average Debt
Repayment Term
Ultimate Cost
$30,000
5 yrs and 11 mos
$35,162
$35,000
7 yrs and 1 mo
$42,303
$40,000
8 yrs and 4 mos
$49,942
$45,000
9 yrs and 9 mos
$58,156
$55,000
12 yrs and 10 mos
$76,705
Average New Graduate’s Loan Payments (5.50% APR for 10 Years, $60,028 GI)
Monthly Payment
% of Income
Average Debt
Ultimate Cost
$326
6.5%
$30,000
$39,069
$380
7.6%
$35,000
$45,581
$434
8.7%
$40,000
$52,093
$488
9.8%
$45,000
$58,604
$597
11.9%
$55,000
$71,627
Class of 2022 Student Loan Payments
Because student loan interest rates are at historic highs, current students may not be able to pay off their student loan debts within the recommended 10-year timeline.
5.50% is the interest rate for Direct Subsidized and Unsubsidized federal student loans to undergraduate borrowers.
$58,849 is a low-end starting salary for a new graduate with a Bachelor’s degree.
$86,964 is a high-end salary.
$77,636 is the median annual salary for a recent graduate with a Bachelor’s degree.
$23,390 is the average student debt for a federal loan borrower who graduated from a public institution with a Bachelor’s degree.
$26,720 is the average student debt for a federal loan borrower who graduated from a private, nonprofit institution with a Bachelor’s degree.
$34,740 is the average student debt for a federal loan borrower who graduated from a private, for profit institution with a Bachelor’s degree.
Undergraduate Class of 2022 Student Loan Payments
Payments on a Low-End Starting Salary (5.50% APR, $58,849 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$490
10.0%
$23,390
4 yrs and 6 mos
$26,457
$490
10.0%
$26,720
5 yrs and 3 mos
$30,817
$490
10.0%
$34,740
7 yrs and 2 mos
$42,108
$254
5.2%
$23,390
10 yrs
$30,461
$290
5.9%
$26,720
10 yrs
$34,798
$377
7.7%
$34,740
10 yrs
$45,242
Payments on an Average Starting Salary (5.50% APR, $77,636 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$647
10.0%
$23,390
3 yrs and 4 mos
$25,631
$647
10.0%
$26,720
3 yrs and 10 mos
$29,689
$647
10.0%
$34,740
5 yrs and 2 months
$39,969
$254
3.9%
$23,390
10 yrs
$30,461
$290
4.5%
$26,720
10 yrs
$34,798
$377
5.8%
$34,740
10 yrs
$45,242
Associate’s Student Loan Payments
Student borrowers with Associate’s degrees are the most likely to pay off their student loans faster than other degree holders. From a purely financial stand-point, this gives the average Associate’s degree the highest value in terms of cost-benefit ratio.
Just 31% of Associate’s degree holders who graduated from public institutions use student loans to pay for school.
77% of attendees of private, nonprofit schools take on student loan debt.
91% of attendees of private, for-profit schools take on student loan debt.
$55,016 is the median annual salary for an Associate’s degree holder.
$36,520 is the low-end average annual salary.
$14,890 is the average student debt for a federal loan borrower who graduated from a public institution with an associate’s degree.
$25,770 is the average student debt for a federal loan borrower who graduated from a private, nonprofit institution with an associate’s degree.
$24,090 is the average student debt for a federal loan borrower who graduated from a private, for profit institution with an associate’s degree.
Payments on a Low-End Starting Salary (5.50% APR, $36,520 GI)
Monthly Payment
Average Debt
Repayment Term
Repayment Term
Ultimate Cost
$304
10.0%
$14,890
4 yrs and 8 mos
$16,902
$304
10.0%
$25,770
9 yrs
$32,700
$304
10.0%
$24,090
8 yrs and 3 mos
$30,002
$162
5.3%
$14,890
10 yrs
$19,391
$280
9.2%
$25,770
10 yrs
$33,561
$261
8.6%
$24,090
10 yrs
$31,373
Payments on an Average Starting Salary (5.50% APR, $55,016 GI)
Monthly Payment
Average Debt
Repayment Term
Repayment Term
Ultimate Cost
$458
10.0%
$14,890
3 yrs
$16,161
$458
10.0%
$25,770
5 yrs and 6 mos
$29,872
$458
10.0%
$24,090
5 yrs and 1 mo
$27,629
$162
3.5%
$14,890
10 yrs
$19,391
$280
6.1%
$25,770
10 yrs
$33,561
$261
5.7%
$24,090
10 yrs
$31,373
Average Payments for Graduate Student Loans
Graduate students logically must make higher monthly payments. For some degrees, this doesn’t just mean paying a higher dollar amount; it may also mean a significant portion of a borrower’s income goes toward repaying student loan debt.
7.05% is the interest rate for Direct Unsubsidized federal student loans to graduate or professional borrowers.
8.05% is the interest rate for Direct PLUS loans, which go to graduate or professional borrowers as well as parents of undergraduates borrowing on their behalf.
48% of graduate degree completers have student loan debt. 54% have both undergraduate and graduate student loan debt.
Master’s Student Loan Payments
Student borrowers with Master’s degrees who make an average salary are more likely to be able to pay 10% of their salary to pay off their loans than students with other graduate degrees.
$58,640 is the average student debt for a borrower who graduated from a public institution with a Master’s degree.
$52,040 is the average student debt for a borrower who graduated from a private, nonprofit institution.
$76,360 is the average debt for Master’s degree holders who attended a private, for-profit institution.
$90,324 is the median salary for a Master’s degree holder.
$44,040 is the low-end salary for a Master’s degree holder.
Student Loan Payments on a Low-End Salary (7.05% APR, $44,040 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$367
10.0%
$58,640
39 yrs and 9 mos
$174,941
$367
10.0%
$52,040
25 yrs and 6 mos
$112,156
$367
10.0%
$76,360
N/A
N/A
$682
18.5%
$58,640
10 yrs
$81,885
$606
16.5%
$52,040
10 yrs
$72,668
$889
24.2%
$76,360
10 yrs
$106,629
Student Loan Payments on an Average Salary (7.05% APR, $90,324 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$753
10.0%
$58,640
8 yrs and 9 mos
$78,619
$753
10.0%
$52,040
7 yrs and 5 mos
$66,962
$753
10.0%
$76,360
12 yrs and 11 mos
$116,434
$682
9.1%
$58,640
10 yrs
$81,885
$606
8.1%
$52,040
10 yrs
$72,668
$889
11.8%
$76,360
10 yrs
$106,629
Professional & Doctorate Student Loan Payments
The average debt for a graduate from a private, nonprofit institution with a Professional degree is about the same as the average medical school debt.
$109,668 is the median salary for people with Doctoral degrees.
$57,490 is a low-end salary for Doctoral degree holders.
$160,530 is the average debt for a Doctoral degree at a public institution.
$212,430 is the average debt for a Doctoral degree at a private, nonprofit institution.
$165,960 is the average debt for a Doctoral degree at a private, for-profit institution.
$178,800 is the average debt for Professional degree holders.
$114,712 is the median annual salary for someone with a Professional degree.
$76,530 is a low-end salary for someone with a Professional degree.
Payments on a Doctorate’s Low-End Salary (7.05% APR, $57,490 GI)
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 yrs
$224,163
$2,472
51.6%
$212,430
10 yrs
$296,636
$1,931
40.3%
$165,960
10 yrs
$231,746
Payments on a Doctorate’s Average Salary (7.05% APR, $109,668 GI)
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 yrs
$224,163
$2,472
27.0%
$212,430
10 yrs
$296,636
$1,931
21.1%
$165,960
10 yrs
$231,746
Payments on a Professional’s Low-End Salary (7.05% APR, $76,530 GI)
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 yrs
$249,676
Payments on a Professional’s Average Salary (7.05% APR, $114,712 GI)
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 yrs
$249,676
Payments for Medical School Debt
Among professional degree holders, medical and law degrees are among the most commonly sought. They are also among the most expensive.
$199,220 is the average student loan debt for a medical school graduate.
$63,400 is a first-year resident’s annual salary.
$239,200 is a general physician or surgeon’s salary.
$339,470 is an anesthesiologist’s salary.
Payments on a First-Year Resident’s Salary (7.05% APR, $63,400 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$528
10.0%
$199,220
N/A
N/A
$2,318
43.9%
$199,220
10 yrs
$278,190
Payments on a Physician’s Salary (7.05% APR, $239,200 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$1,993
10.0%
$199,220
12 yrs and 9 mos
$301,086
$2,318
11.6%
$199,220
10 yrs
$278,190
Payments on an Anesthesiologist’s Salary (7.05% APR, $339,470 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$2,829
10.0%
$199,220
7 yrs and 9 mos
$257,874
$2,318
8.2%
$199,220
10 yrs
$278,190
Payments for Law School Debt
The average law school debt is more than four times higher than the average undergraduate student debt but still only two-thirds of the average medical school debt. The average starting salary for a new law school graduate is similar to the average salary for someone with a bachelor’s degree.
$140,870 is the average student loan debt for a law school graduate.
$70,000 is the average starting salary for a law school graduate.
$145,300 is the average salary for an experienced attorney.
$186,350 is the average high-end salary for a senior attorney.
Payments on a Lawyer’s Starting Salary (7.05% APR, $70,000 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$583
10.0%
$140,870
N/A
N/A
$1,639
28.1%
$140,870
10 years
$196,710
Payments on an Experienced Lawyer’s Salary (7.05% APR, $145,300 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$1,211
10.0%
$140,870
16 yrs and 5 mos
$237,775
$1,639
13.5%
$140,870
10 yrs
$196,710
Payments on a Senior Attorney’s High-End Salary (7.05% APR, $186,350 GI)
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$1,553
10.0%
$140,870
10 yrs and 10 mos
$201,946
$1,639
10.6%
$140,870
10 yrs
$196,710
Private Student Loan Payments
Private student loans, for the most part, come from academic institutions as well as banks and credit unions. The total amount of private student loan debt is difficult to track because little of the related data is a matter of public record.
3.85% is the low-end private student loan interest rate for most student borrowers.
16.49% is the high-end interest rate.
The total amount of student loan debt for private student loans is $59.3 billion.
Private Student Loans Payments◊ at the Low-End APR (3.85%), $60,028 GI
Monthly Payment
% of Income
Average Debt
Repayment Term
Ultimate Cost
$500
10.0%
$15,000
2 yrs and 8 mos
$15,797
$500
10.0%
$30,000
5 yrs and 7 mos
$33,375
$500
10.0%
$60,000
12 yrs and 9 mos
$74,266
$603
12.1%
$60,000
10 yrs
$72,384
Private Student Loan Payments at a High-End APR (16.49%), $60,028 GI
