Average Student Loan per Month: Understanding the Costs of Higher Education

As tuition fees for higher education continue to rise, it’s becoming increasingly common for students to rely on loans to finance their studies. But what is the average student loan per month, and how does it impact the financial future of graduates?

The State of Student Loan Debt in America

Before we dive into the specifics of average student loan amounts, it’s important to understand the broader context of student loan debt in America. According to the most recent data available from the Federal Reserve, Americans collectively owe over $1.7 trillion in student loan debt. That’s more than double the amount owed just a decade ago.

Not only is student loan debt on the rise, but it’s also becoming more common. In 1996, only 54% of graduates had student loan debt. By 2016, that number had risen to 74%. And the average amount of debt per borrower has also increased, from around $12,000 in the mid-1990s to over $30,000 today.

This trend is concerning for a number of reasons. For one, it places a heavy burden on young people just starting out in their careers. It also has broader economic implications, as graduates with high levels of student loan debt are less likely to start businesses or buy homes, both of which are crucial drivers of economic growth.

What is the Average Student Loan per Month?

So, what does all of this mean for the average student loan per month? Unfortunately, there isn’t a simple answer to that question, as it depends on a number of factors, including:

How it Affects Average Monthly Payments
Loan amount
The more you borrow, the higher your monthly payments will be
Interest rate
The higher your interest rate, the more you’ll pay in interest each month
Repayment term
The longer your repayment term, the lower your monthly payments will be

Calculating Your Monthly Payments

That being said, it’s still possible to get a general sense of what the average student loan per month might look like. To do so, you can use an online repayment calculator that takes into account your loan amount, interest rate, and repayment term.

For example, let’s say you borrow $25,000 at an interest rate of 5% with a repayment term of 10 years. According to the repayment calculator on StudentLoans.gov, your monthly payment would be around $265.

How to Reduce Your Monthly Payments

Of course, $265 per month is still a significant expense for many people, especially those who are just starting out in their careers. So how can you reduce your monthly payments?

Consider Income-Driven Repayment Plans

One option is to consider an income-driven repayment plan, which bases your monthly payments on your income and family size. Depending on your circumstances, this could significantly reduce your monthly payments.

Refinance Your Loans

Another option is to refinance your loans, which involves taking out a new loan with a private lender to pay off your existing loans. This can lower your interest rate and/or extend your repayment term, both of which can reduce your monthly payments.

Make Extra Payments When Possible

Finally, if you’re able to do so, making extra payments when possible can help you pay off your loans faster and reduce the total amount of interest you’ll pay over the life of the loan.


1. How do I apply for student loans?

To apply for federal student loans, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA) each year. You can also apply for private student loans through a bank or other lender.

2. What’s the difference between federal and private student loans?

Federal student loans are issued by the government and usually have lower interest rates and more flexible repayment options than private loans. Private loans are issued by banks and other lenders and may have higher interest rates and stricter repayment terms.

3. Can I get student loans if I have bad credit?

It may be more difficult to qualify for student loans with bad credit, but it’s still possible. You may need a co-signer or to explore alternative options, such as scholarships or grants.

4. Can I use student loans to pay for living expenses?

Yes, you can use student loans to cover a range of expenses, including tuition, room and board, textbooks, and living expenses.

5. What happens if I can’t make my student loan payments?

If you’re having trouble making your student loan payments, there are a number of options available to you, including income-driven repayment plans, deferment, and forbearance.

6. Can I consolidate my student loans?

Yes, you can consolidate your federal student loans through the Direct Consolidation Loan program. Private loans cannot be consolidated through this program, but you may be able to refinance them through a private lender.

7. How long do I have to repay my student loans?

The length of your repayment term depends on the type of loan you have and your repayment plan. Federal loans typically have a standard repayment term of 10 years, but you may be able to extend this term through certain repayment plans.

8. What’s the average interest rate on student loans?

The average interest rate on federal student loans for the 2020-21 school year is 2.75% for undergraduate loans and 4.30% for graduate loans. Private loan interest rates vary depending on the lender, your credit score, and other factors.

9. Can I deduct my student loan interest on my taxes?

Yes, you may be able to deduct up to $2,500 in student loan interest on your federal income taxes each year.

10. Can my student loans be forgiven?

There are a number of loan forgiveness programs available to borrowers who meet certain criteria, such as working in certain public service fields or teaching in low-income schools.

11. Where can I find more information about student loans?

You can find more information about federal student loans at StudentAid.gov, and information about private student loans at individual lenders’ websites.

12. How often do I need to make student loan payments?

Most student loan borrowers need to make monthly payments, but the specific repayment terms depend on your loan agreement and repayment plan.

13. Can I change my repayment plan down the line?

Yes, you can change your repayment plan at any time by contacting your loan servicer.


As you can see, the average student loan per month is a complex issue that depends on a variety of factors. But by understanding your options for repayment and taking steps to reduce your monthly payments, you can help ensure that your student loan debt doesn’t become an overwhelming burden on your finances or your future.

If you’re struggling with student loan debt, don’t hesitate to reach out to your loan servicer or a financial advisor for guidance. And remember, there are always options available to help you manage and ultimately pay off your loans.

Take Action Today

If you’re looking to reduce your monthly student loan payments, consider exploring income-driven repayment plans or refinancing your loans. And if you’re just starting out in your college or university journey, research your financial aid options to help minimize your reliance on loans in the first place.

Important Disclaimer

The information provided in this article is for educational purposes only and should not be construed as financial advice. Always consult a qualified financial advisor before making any major financial decisions.