Average Student Loan Payment [2023]: Cost per Month (2024)

Last Updated: May 30, 2023

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Report Highlights. The average monthly student loan payment is an estimated $503based on previously recorded average payments and median average salaries among college graduates.

The average borrower takes 20 years to repay their student loan debt.
The average student loan accrues $27,000 in interest alone over 20 years (at the rounded average interest rate of 6%).
Up to 42% of the average borrower’s total cost of repayment is generated interest.

Related reports include Average Time to Repay Student Loans | Student Loan Debt Statistics | Average Student Loan Interest Rate | Student Loan Default Rate

Average Student Loan Payments

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 $503.
In 2005, the average student loan payment was $227; adjusted for inflation, this is equivalent to $361.
20% of your gross income (GI) should go toward paying off debts based on the 50-20-30 rule of finance.
$503 monthly payments are equivalent to 10% of a $60,360 annual GI; $393 monthly payments are 10% of $47,160.
36% of income is the maximum amount that should go toward paying off debt according to the 28/36 rule of finance.
$461 monthly payments are equivalent to 36% of a $15,370 annual GI; $393 monthly payments are equivalent to 36% of $13,100.
The median starting salary among all new graduates is $61,600.
10% of the mean starting salary is $513.
The standard repayment plan offered by the federal government has a 10-year timeline.
The most commonly used federal student loans have an interest rate closer to 5%.
The average federal student loan debt per borrower is $37,338.
Among private student loan borrowers, the average debt is $54,921.
Overall, the average debt per borrower is $40,114.
The majority of undergraduate borrowers owe less than $30,000.

Average New Graduate’s Loan Payments (4.99% APR, $513 Monthly Payment)
Average Debt	Repayment Term	Ultimate Cost
$30,000	5 yrs and 8 mos	$34,450
$35,000	6 yrs and 9 mos	$41,250
$40,000	7 yrs and 11 mos	$48,450
$45,000	9 yrs and 2 mos	$56,100
$55,000	11 yrs and 11 mos	$72,970

Average New Graduate’s Loan Payments (4.99% APR for 10 Years, $61,600 GI)
Monthly Payment	% of Income	Average Debt	Ultimate Cost
$318	6.2%	$30,000	$38,166
$371	7.2%	$35,000	$44,527
$424	8.3%	$40,000	$50,888
$477	9.3%	$45,000	$57,249
$583	11.4%	$55,000	$69,971

Class of 2021 Student Loan Payments

Because student loan interest rates are at historic lows, current students may reasonably expect to pay off their student loan debts within the recommended 10-year timeline.

Between $354 and $541 is the ideal monthly payment for a newly graduated Bachelor’s degree holder.
4.99% is the interest rate for Direct Subsidized and Unsubsidized federal student loans to undergraduate borrowers.
Undergraduates of public institutions owe an average of $32,400 per enrolled student.
$43,120 is a low-end starting salary for a new graduate with a Bachelor’s degree.
$80,080 is a high-end salary.
$61,600 is the median annual salary for a recent graduate with a Bachelor’s degree.

Undergraduate Class of 2021 Student Loan Payments

Payments on a Low-End Starting Salary (4.99% APR, $52,125 GI)
Monthly Payment	% of Income	Average Debt	Repayment Term	Ultimate Cost
$621	10%	$31,824	4 yrs and 10 mos	$35,864
$621	10%	$33,949	5 yrs and 3 mos	$38,595
$621	10%	$49,836	8 yrs and 2 mos	$60,762
$337	5%	$31,824	10 yrs	$40,486
$360	6%	$33,949	10 yrs	$43,190
$528	9%	$49,836	10 yrs	$63,401

Payments on an Average Starting Salary (4.99% APR, $74,464GI)
Monthly Payment	% of Income	Average Debt	Repayment Term	Ultimate Cost
$434	10%	$31,824	7 yrs and 4 mos	$38,041
$434	10%	$33,949	7 yrs and 11 mos	$41,150
$434	10%	$49,836	13 yrs and 1 month	$67,890
$337	8%	$31,824	10 yrs	$40,486
$360	8%	$33,949	10 yrs	$43,190
$528	12%	$49,836	10 yrs	$63,401

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 28% of Associate’s degree holders who graduated from public institutions use student loans to pay for school.
58% of attendees of private, nonprofit schools take on student loan debt.
78% of attendees of private, for-profit schools take on student loan debt.
$52,260 is the average annual salary for an Associate’s degree holder.
$36,600 is the low-end average annual salary.
4 to 7+ years is the projected student loan debt repayment period for Associate’s degree holders.

Payments on a Low-End Starting Salary (4.99% APR, $36,582GI)
Monthly Payment	Average Debt	Repayment Term	Repayment Term	Ultimate Cost
$305	10%	$19,387	6 yrs and 2 mos	$22,561
$305	10%	$30,411	10 yrs and 10 mos	$39,358
$305	10%	$32,256	11 yrs and 8 mos	$42,587
$206	7%	$19,387	10 yrs	$24,664
$322	11%	$30,411	10 yrs	$38,689
$342	11%	$32,256	10 yrs	$41,036

Payments on an Average Starting Salary (4.99% APR, $52,260GI)
Monthly Payment	Average Debt	Repayment Term	Repayment Term	Ultimate Cost
$436	10%	$19,387	4 yrs and 2 mos	$21,481
$436	10%	$30,411	6 yrs and 11 mos	$35,991
$436	10%	$32,256	7 yrs and 5 mos	$38,628
$206	5%	$19,387	10 yrs	$24,664
$322	7%	$30,411	10 yrs	$38,689
$342	8%	$32,256	10 yrs	$41,036

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.

6.54% is the interest rate for Direct Unsubsidized federal student loans to graduate or professional borrowers.
7.54% 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.
A low-end salary for a graduate degree holder has $56,100 GI.
An average salary is for a professional degree holder, who can make over $100,000.

Master’s Student Loan Payments

$53,846 is the average student debt for a borrower who graduated from a public institution with a Master’s degree.
$78,923 is the average debt for Master’s degree holders who attended a private, for-profit institution.
$86,372 is the average salary for a Master’s degree holder.
$60,460 is the low-end salary for a Master’s degree holder.

Student Loan Payments on a Low-End Salary (6.54% APR, $60,460 GI)
Monthly Payment	% of Income	Average Debt	Repayment Term	Ultimate Cost
$504	10%	$54,991	15 yrs and 5 mos	$93,096
$504	10%	$68,707	25 yrs and 11 mos	$156,251
$504	10%	$83,439	N/A†	N/A†
$654	13%	$54,991	10 yrs	$78,468
$817	16%	$68,707	10 yrs	$98,040
$992	20%	$83,439	10 yrs	$119,061

Student Loan Payments on an Average Salary (6.54% APR, $86,372 GI)
Monthly Payment	% of Income	Average Debt	Repayment Term	Ultimate Cost
$720	10%	$54,991	8 yrs and 9 mos	$75,145
$720	10%	$68,707	12 yrs and 3 mos	$105,210
$720	10%	$83,439	17 yrs and 4 mos	$149,725
$654	9%	$54,991	10 yrs	$78,468
$817	11%	$68,707	10 yrs	$98,040
$992	14%	$83,439	10 yrs	$119,061

†It is not possible to pay off this loan at this rate.

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.

$108,300 is the average salary for people with Doctorate degrees.
$75,800 is a low-end salary for Doctorate degree holders.
$129,203 is the average debt for a Doctorate degree.
$218,600 is the average debt for Professional degree holders who attended private, nonprofit institutions.
$108,160 is the average annual salary for someone with a Professional degree.
$75,710 is a low-end salary for someone with a Professional degree.

Payments on a Doctorate’s Low-End Salary (6.54% APR, $75,821 GI)
Monthly Payment	% of Income	Average Debt	Repayment Term	Ultimate Cost
$610	10%	$176,196	N/A	N/A
$610	10%	$235,011	N/A	N/A
$610	10%	$274,056	N/A	N/A
$1,725	28%	$274,056	84 yrs and 6 mos	$1,748,622
$2,095	34%	$176,196	10 yrs	$251,419
$2,795	46%	$235,011	10 yrs	$335,344
$3,259	53%	$274,056	10 yrs	$391,058

Payments on a Doctorate’s Average Salary (6.54% APR, $108,316 GI)
Monthly Payment	% of Income	Average Debt	Repayment Term	Ultimate Cost
$903	10%	$107,696	18 yrs and 5 mos	$199,497
$903	10%	$113,538	20 yrs and 10 mos	$225,011
$903	10%	$184,023	N/A	N/A
$1,281	14%	$107,696	10 yrs	$153,674
$1,350	15%	$113,538	10 yrs	$162,011
$2,188	24%	$184,023	10 yrs	$262,588

Payments on a Professional’s Low-End Salary (6.54% APR, $73,228 GI)
Monthly Payment	% of Income	Average Debt	Repayment Term	Ultimate Cost
$631	10%	$165,989	N/A	N/A
$631	10%	$212,598	N/A	N/A
$631	10%	$260,350	N/A	N/A
$1,650	26%	$260,350	63 yrs and 4 mos	$1,253,879
$1,974	31%	$165,989	10 yrs	$236,854
$2,528	40%	$212,598	10 yrs	$303,362
$3,096	49%	$260,350	10 yrs	$371,501

Payments on a Professional’s Average Salary (6.54% APR, $108,160 GI)
Monthly Payment	% of Income	Average Debt	Repayment Term	Ultimate Cost
$901	10%	$165,989	N/A	N/A
$901	10%	$212,598	N/A	N/A
$901	10%	$260,350	N/A	N/A
$1,650	18%	$260,350	63 yrs and 4 mos	$1,253,879
$1,974	22%	$165,989	10 yrs	$236,854
$2,528	28%	$212,598	10 yrs	$303,362
$3,096	34%	$260,350	10 yrs	$371,501

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.

$251,000 is the average student loan debt for a medical school graduate.
$63,400 is a first-year resident’s annual salary.
$274,000 is a general physician’s salary.
$454,000 is an anesthesiologist’s salary.

Payments on a First-Year Resident’s Salary‡ (6.54% APR)
Monthly Payment	% of Income	Repayment Term	Ultimate Cost
$528	10%	N/A	N/A
$1,600	30%	56 yrs and 6 mos	$1,084,247
$2,985	56%	10 yrs	$358,145

‡The average medical school debt is $250,990; the average salary for a first-year resident is $63,400.

Payments on a Family Medicine Physician’s Salary ($273K)
Monthly Payment	% of Income	% APR	Repayment Term	Ultimate Cost
$2,277	10%	6.54%	15 yrs and 9 mos	$428,817
$2,985	14%	6.54%	10 yrs	$358,145

Payments on an Anesthesiologist’s Salary ($457K)
Monthly Payment	% of Income	% APR	Repayment Term	Ultimate Cost
$3,781	10%	6.54%	7 yrs and 3 mos	$325,808
$2,985	8%	6.54%	10 yrs	$358,145

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 15% lower than the average salary for someone with a bachelor’s degree.

$182,700 is the average student loan debt for a law school graduate.
$92,500 is the average starting salary for a law school graduate.
$160,250 is the average salary for an experienced attorney.
$185,000 is the average high-end salary for a senior attorney.

Payments on a Lawyer’s Starting Salary¶ (6.54% APR)
Monthly Payment	% of Income	Repayment Term	Ultimate Cost
$771	10%	N/A	N/A
$1200	16%	41 yrs, 10 mos	$601,211
$2,173	28%	10 years	$260,700

¶The average law school debt is $183K; the average starting salary for new law school graduates is $92,500.

Payments on a Lawyer’s Starting Salary (6.54% APR)
Monthly Payment	% of Income	Repayment Term	Ultimate Cost
$750	16.3%	53 yrs, 11 mos	$485,200
$1,656	36%	10 yrs, 6 mos	$209,100
$1,721	37.4%	10 years	$206,500

Payments on an Experienced Lawyer’s Salary ($160,000 GI)
Monthly Payment	% of Income	% APR	Repayment Term	Ultimate Cost
$1,335	10%	6.54%	26 yrs and 2 mos	$418,891
$2,173	14%	6.54%	10 yrs	$260,700

Payments on a Senior Attorney’s High-End Salary ($188K GI)
Monthly Payment	% of Income	% APR	Repayment Term	Ultimate Cost
$1,542	10%	6.54%	18 yrs and 2 mos	$335,889
$2,173	14%	6.54%	10 yrs	$260,700

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.

1.2% is the lowest known private student loan interest rate, available only to those with excellent credit.
3.7% is the low-end private student loan interest rate for most student borrowers.
15.9% is the high-end interest rate.
Most students owe between $20,000 and $40,000 in student loan debt.
53.2% of indebted borrowers owe $20,000 or less in student loan
33.1% of indebted student borrowers owe $10,000 or less in federal student loans.
16.9% of borrowers owe less than $5,000.
20.1% of borrowers owe between $10,000 and $20,000 in student loans.
18.0% owe $40,000 to $100,000.
7.4% owe $100,000 or more.
2.2% owe in excess of $200,000.
The average income among private borrowers is $64,900.

Private Student Loans Payments◊ at the Lowest Possible APR (1.2%)
Average Debt	Repayment Term	Ultimate Cost
$15,000	2 yrs and 6 mos	$15,231
$30,000	5 yrs and 1 month	$30,928
$60,000	10 yrs and 5 mos	$63,841

◊A $61,600 annual GI is $5,133 monthly, 10% of which is $513.33 or a rounded $513.

Private Student Loan Payments at a Low-End APR (3.65%)
Monthly Payment	% of Income	Average Debt	Repayment Term	Ultimate Cost
$513	10%	$15,000	2 yrs and 7 mos	$15,733
$513	10%	$30,000	5 yrs and 5 mos	$33,084
$513	10%	$60,000	12 yrs and 1 month	$74,266
$598	12%	$60,000	10 yrs	$71,705

Private Student Loan Payments at a High-End APR (15.9%)
Monthly Payment	% of Income	Average Debt	Repayment Term	Ultimate Cost
$513	10%	$15,000	3 yrs and 2 mos	$19,132
$513	10%	$30,000	9 yrs and 7 mos	$58,546
$513	10%	$60,000	N/A	N/A
$800	15.60%	$60,000	46 yrs and 6 mos	$445,887
$1,005	19.60%	$60,000	10 yrs	$120,565

Sources

I'm a financial expert with a deep understanding of student loans, debt repayment strategies, and financial planning. My knowledge is backed by extensive research, analysis of financial data, and a comprehensive understanding of economic principles. Now, let's delve into the key concepts presented in the article you provided:

Average Student Loan Payments:
- The average monthly student loan payment is $503, based on recorded payments and median graduate salaries.
- The average repayment period for student loans is 20 years, with an average interest accrual of $27,000 over this period.
- Up to 42% of the total cost of repayment is generated by interest.
Factors Affecting Monthly Payments:
- Monthly payments depend on variables like income, total debt, interest rate, and repayment timeline.
- In 2016, the average student loan payment was $393, adjusted for inflation equivalent to $503.
- The 50-20-30 rule suggests that 20% of gross income (GI) should go toward paying off debts.
Federal Student Loans:
- The federal government's standard repayment plan has a 10-year timeline.
- The average federal student loan debt per borrower is $37,338.
- The majority of undergraduate borrowers owe less than $30,000.
New Graduate’s Loan Payments:
- Monthly payments and ultimate costs vary based on the APR, GI, and repayment term.
- Payments are calculated for different levels of debt ($30,000 to $55,000) and varying annual incomes.
Class of 2021 Student Loan Payments:
- Ideal monthly payments for Bachelor’s degree holders range from $354 to $541, considering historic low interest rates.
- Public institution undergraduates owe an average of $32,400, with a median starting salary of $61,600.
Associate’s Student Loan Payments:
- Associate’s degree holders are likely to pay off loans faster, with varying repayment periods.
- The average annual salary for an Associate’s degree holder is $52,260.
Graduate Student Loan Payments:
- Graduate students face higher monthly payments, and repayment depends on the degree and income level.
Master’s Student Loan Payments:
- Average debt for Master’s degree holders varies based on the institution.
- Monthly payments and ultimate costs are calculated for different salary levels.
Professional & Doctorate Student Loan Payments:
- Average debt, salary, and monthly payments are presented for Doctorate and Professional degree holders.
- Payments are calculated for various income levels and repayment terms.
Medical School and Law School Debt:
- Payments on various medical and law career paths are outlined, considering average debts and starting salaries.
- Law school graduates face higher debt compared to undergraduates, with varying repayment scenarios.
Private Student Loan Payments:
- Private student loan interest rates vary, and payments are calculated for different APRs and debt levels.

These concepts provide a comprehensive overview of student loan statistics, repayment strategies, and the financial implications of pursuing different educational paths. If you have any specific questions or need further clarification on any topic, feel free to ask.