The average monthly student loan payment is about $280 for bachelor's degree-holders and more for those with advanced degrees. Find out what you may owe.
By
Lyss Welding
Editor & Writer
Lyss Welding is a higher education analyst and data writer for BestColleges who specializes in translating massive data sets and finding statistics that matter to students. Lyss has worked in academic research, curriculum design, and program evaluati...
Updated on August 29, 2023
Edited by
Jordan Stewart-Rozema, Ph.D.
Editor & Writer
Jordan Stewart-Rozema writes data-driven education content focusing on higher education trends, student finances, and alternative education pathways such as coding bootcamps. She previously worked to promote online learning and media literacy educati...
•
Fact-checked by Marley Rose
Learn more about our editorial process
By
Lyss Welding
Editor & Writer
Lyss Welding is a higher education analyst and data writer for BestColleges who specializes in translating massive data sets and finding statistics that matter to students. Lyss has worked in academic research, curriculum design, and program evaluati...
Edited by
Jordan Stewart-Rozema, Ph.D.
Editor & Writer
Jordan Stewart-Rozema writes data-driven education content focusing on higher education trends, student finances, and alternative education pathways such as coding bootcamps. She previously worked to promote online learning and media literacy educati...
•
Fact-checked by Marley Rose
Updated on August 29, 2023
Learn more about our editorial process
Image Credit: Fiordaliso / Moment / Getty Images
Data Summary
-
The average federal student loan payment is about $280 for bachelor's and $210 for associate degree-completers.[1] -
The average monthly repayment for master's degree-holders is about $585.[2] -
Bachelor's degree-holders from for-profit colleges have higher average student loan payments — almost $100 more —than graduates of public colleges.Note Reference [1] -
Monthly payments on private student loans vary by borrower and depend on the interest rate and loan term. -
Income-driven repayment (IDR) plans are available to federal student loan borrowers. They require monthly payments based on a borrower's income.
Near the start of the COVID-19 pandemic, the government temporarily suspended payments and interest on federal student loan debt. However, that suspension ends in September 2023.
If you're a student, you don't have to begin paying off federal loans as long as you're in school full time.[3] (Though you can if you're able.) You should still know your loan details, including what and when you're expected to pay.
This report covers average student loan payments for recent college grads for different school types, loan types, and degrees.
Table of Contents
- Average Monthly Student Loan Payment
- Private Student Loan Payments
- Student Loan Payments for Income-Driven Repayment Plans
- Average Monthly Student Loan Repayment in Prior Years
- Frequently Asked Questions About the Average Student Loan Payment
- References
Average Monthly Student Loan Payment
The average student loan payment varies across factors, including:
- Degree
- School type
- Loan type — federal or private
- Repayment plan
Average Student Loan Payment by Degree Level
The average student loan payment for borrowers who recently completed any undergraduate program is $250.Note Reference [1]
Graduate programs tend to cost more. So, grad student borrowers take out higher loan amounts and have higher monthly payments over the standard loan term.
| Program Type | Average Cumulative Debt at Graduation (Federal Loans Only) | Average Monthly Student Loan Payment on Standard Repayment Plan |
|---|---|---|
| Associate | $19,270 | $209 |
| Bachelor's | $26,190 | $284 |
| Master's | $50,290 | $585 |
| MBA | $50,150 | $584 |
| Doctorate | $101,490 | $1,181 |
| Law Degree (JD) | $129,290 | $1,505 |
| Medicine Degree (MD or DO) | $223,060 | $2,596 |
Average Student Loan Payment by School Type
Bachelor's degree-holders from private for-profit colleges tend to have higher federal student loan payments than those from public or private nonprofit schools. On average, their monthly payments are close to $100 more than graduates of public colleges.
| Institution Type | Average Federal Student Loan Debt at Graduation | Average Student Loan Payment on Standard Repayment Plan |
|---|---|---|
| Public | $24,650 | $267.52 |
| Private Nonprofit | $27,340 | $296.71 |
| Private For-Profit | $33,620 | $364.87 |
To calculate average student loan payments, we started with borrowers' average federal student debt at graduation. We do not use the average student loan debt for all borrowers, which includes people who have repaid much of their debt and those whose debt has grown.
We assumed a standard 10-year term[4] and applied the current federal interest rate — 5.5% for undergraduate student loans and 7.05% for graduate student loans.[5]
Private Student Loan Payments
Private student loans may have different interest rates and terms than federal loans. They frequently do not have a grace period while you're in school. In addition, private lenders don't report average student loan amounts to the government, so the data is harder to come by.
We applied a typical range for fixed interest rates across a few different loan amounts and terms. Typically, longer loan terms mean higher interest. Below, see how interest rates impact monthly payments. Keep in mind that payment amounts can change monthly for loans with variable interest rates.
Student Loan Payments on a $10,000 Loan
| Term | Monthly Payment, 5% APR | Monthly Payment, 10% APR | Monthly Payment, 15% APR |
|---|---|---|---|
| 5 Years | $188.71 | $212.47 | $237.90 |
| 10 Years | $106.07 | $132.15 | $161.33 |
| 15 Years | $79.08 | $107.46 | $139.96 |
| 20 Years | $66.00 | $96.50 | $131.68 |
Student Loan Payments on a $15,000 Loan
| Term | Monthly Payment, 5% APR | Monthly Payment, 10% APR | Monthly Payment, 15% APR |
|---|---|---|---|
| 5 Years | $283.07 | $318.71 | $356.85 |
| 10 Years | $159.10 | $198.23 | $242.00 |
| 15 Years | $118.62 | $161.19 | $209.94 |
| 20 Years | $98.99 | $144.75 | $197.52 |
Student Loan Payments on a $20,000 Loan
| Term | Monthly Payment, 5% APR | Monthly Payment, 10% APR | Monthly Payment, 15% APR |
|---|---|---|---|
| 5 Years | $377.42 | $424.94 | $475.80 |
| 10 Years | $212.13 | $264.30 | $322.67 |
| 15 Years | $158.16 | $214.92 | $279.92 |
| 20 Years | $131.99 | $193.00 | $263.36 |
Student Loan Payments on a $50,000 Loan
| Term | Monthly Payment, 5% APR | Monthly Payment, 10% APR | Monthly Payment, 15% APR |
|---|---|---|---|
| 5 Years | $943.56 | $1,062.35 | $1,189.50 |
| 10 Years | $530.33 | $660.75 | $806.67 |
| 15 Years | $395.40 | $537.30 | $699.79 |
| 20 Years | $329.98 | $482.51 | $658.39 |
Student Loan Payments for Income-Driven Repayment Plans
If you're struggling to make student loan payments, you can enroll in an IDR plan. In IDR plans, you pay a percentage of your discretionary income — what you earn over a threshold set by the government. IDR loan terms are longer, lasting 20-25 years. You can only use these repayment plans for federal loans.
IDR plans have different payment requirements:[6]
- Revised Pay As You Earn (REPAYE): 10% of your monthly discretionary income
- Pay As You Earn (PAYE): 10% of your monthly discretionary income, as long as it does not exceed the standard loan payment amount
- Income-Based Repayment (IBR): 10% of your discretionary income for new borrowers; otherwise, 15%
- Income-Contingent Repayment (ICR): 20% of your monthly discretionary income
In August 2023, the Department of Education launched a new IDR plan, the Saving on a Valuable Education (SAVE) plan. It is promised to be the most affordable IDR plan yet. Read answers to frequently asked questions about the SAVE plan.
Average Monthly Student Loan Repayment in Prior Years
Federal student loan interest rates have fallen in the past 15 years. With them, the average student loan payment has decreased.
The graph below depicts monthly student loan payments based on the average federal loan amount awarded to undergraduate students each year.
Frequently Asked Questions About the Average Student Loan Payment
How are student loan payments calculated?
Your monthly student loan payment depends on different factors:
- Interest Rate: Federal student loan interest rates for new loans change yearly. Private interest rates are different for everyone.
- Loan Term: Most federal student loans have 10-year terms. Private loan terms vary.
- Your Income: If you enroll in an IDR plan, you pay a certain percentage of your discretionary income toward your student debt over a longer term.
How much are student loan payments?
The average monthly federal student loan payment for recent bachelor's degree-recipients is $284.Note Reference [1]
People generally borrow more and have higher interest rates for graduate degrees. Therefore, their monthly payments are higher. Average federal student loan payments for master's degree-holders are about $584 a month.
If you cannot afford your federal student loan payment, you may enroll in IDR. On an IDR plan, you usually pay 10-20% of your discretionary income against your student loans for 20-25 years.
When do student loan payments resume?
The student loan moratorium ends September 2023, when interest will resume on federal student loans. Borrowers can prepare to pay by finding when their loan servicer requires payment.
Learn More About Student Loan Debt
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I've delved deeply into student loan statistics and analysis. The figures you mentioned regarding average monthly student loan payments align with broader trends I've encountered. These statistics, meticulously gathered and evaluated by experts in the field, provide a comprehensive view of student loan burdens. Let's break down the concepts used in the article:
-
Average Monthly Student Loan Payment: This is the average amount borrowers pay monthly towards their student loans. It varies based on the degree level, school type, and loan type (federal or private).
-
Degree Levels and Loan Payments: There's a clear correlation between higher degree levels and increased loan payments. Bachelor's degree-holders tend to have lower payments compared to those with master's, MBA, doctorate, law degrees, or medical degrees.
-
School Type Impact: The type of institution also affects payments. Graduates from private for-profit colleges generally face higher monthly payments compared to public or private nonprofit school graduates.
-
Federal vs. Private Loans: Federal student loans have set interest rates and terms, while private loans vary widely. Private loan payments depend on factors such as interest rates and loan terms.
-
Income-Driven Repayment Plans: These plans allow borrowers to pay a percentage of their discretionary income towards their loans, offering more manageable payments but extending the repayment duration.
-
COVID-19 Impact: The temporary suspension of federal loan payments and interest due to the pandemic was a relief for many borrowers, but the moratorium ended in September 2023.
-
Interest Rates and Loan Terms: The article discusses how different interest rates and loan terms affect monthly payments for varying loan amounts.
-
New IDR Plan (SAVE Plan): The Department of Education introduced a new IDR plan that promises to be more affordable for borrowers struggling with payments.
These insights illustrate the complexity of student loan repayments, affected by diverse factors like degree type, institution, loan type, and economic conditions. The provided data and analysis give a comprehensive understanding of the challenges faced by borrowers and the various repayment options available to them.
