Student loans have gradually become a menace to society. It seems like everyone has student loans, which can be a burden for a significant portion of their lives. Student loans are different from other loans because you absolutely must pay them.
They can also have a multigenerational effect as parents can be forced to pay a student loan by taking money from their retirement fund. Age is a significant factor affecting student loan debt in the country.
The price of higher education is higher than it has ever been, but other factors will influence it, including interest rates and repayments.
Student Loan Amount By Size
We will consider the student loans based on various age categories, including:
When comparing total student loan size for the above generations, you get a picture of how much each generation owes.
The 24 and younger group had a collective debt of about $110 billion. The 25 to 34 group has a debt of about $500 billion. The people aged 35 to 49 have an obligation of $622 billion. The 50 to 61 generation had a collective debt of $282 billion, while those 62 and older had a total loan of $98 billion.
It is crucial to say that the student loan of older generations has grown due to interest accumulations over the years.
Higher interest payments significantly increase the total amount, which can happen during things like refinancing. You can use a student loan refinance calculator to see how it affects loan balance.
Therefore, those younger age categories can expect their loan balances to increase with time gradually.
The average student loan size based on the above age groups also paints a fascinating picture. The age group 50 to 61 years, as of Q4 2021, had the highest average debt per person at $44,312.
The 35 to 49 year group had the second-highest level of debt per person at $43,210. The 24-and-younger category had the least student loan debt average, at $14,430. The 25 to 34 year age group had an average student loan debt of $33,570.
Individuals can take various steps to reduce their total debt, such as debt consolidation. Each person’s case is different, so the average loan size does tell an intriguing story but not the full one.
How Age Determines Student Loan Debt
As you can tell from the information above, Americans experience student loans differently depending on age. It also describes how much debt they take on by age, depending on the cost of higher education.
It is vital to state that anyone can reduce their student loans by varying degrees, including older generations like baby boomers.
Based on the above statistics, it is clear that various age groups are more affected by student loan debt than others.
The 50 to 61 age group is the most highly afflicted, closely followed by the 35 to 49 age group. However, as stated above, the numbers will change as time progresses and age groups change.
Other factors will affect the total loan size per group, such as the total number of borrowers. According to the Federal Student Aid data, as of 2021, the group with the highest number of borrowers is 25-to-34-year-olds, at 14.9 million. 35-to-49-year-olds had about 14.4 million borrowers.
The 50-to-61-year-olds had 6.4 million borrowers. The 24 and younger group had 7.8 million borrowers, and the 62-and-older group had the least borrowers at 2.4 million.
The student loan data by age paints a fascinating albeit grim picture of debt. The 50 to 61 age group was the most affected by student loans, followed by 35-to-49-year-olds.
Many factors affect the total loan debt amount by age, including the number of borrowers, of which the 25-to 34-year-olds had the most.