2024 Student Loan Debt by Race | BestColleges (2024)

Student loan debt varies drastically by race. Black adults carry the highest levels of student loan debt and are most likely to face repayment barriers.

In the U.S., one in three adults who attended college took on student loan debt. The median debt in 2023, was between $20,000-$25,000.^{Note Reference [5]} However, average student loan debt varies dramatically by race.

Black adults in particular tend to bear the highest burdens across indicators, from student loan borrowing rates to default rates to average debt. These debt disparities are symptoms of — and reinforce — a racial wealth gap in and beyond the college years.

Keep reading to find student debt by race statistics, debt by race and gender, and answers to frequently asked questions.

Student Loan Debt by Race

Black adults are more than twice as likely than white adults to have student loan debt.^{Note Reference [1]}

The following graph includes federal and private student loan debt among all adults.

On average, Black adults in the U.S. also hold higher student loan debt balances than borrowers of other races.^{Note Reference [1]} The graph below shows the median debt held per borrower by race. The median, versus the average or mean, may be more indicative of what's typical, since outliers more easily skew averages.

Black borrowers are also more likely to have higher debt balances. Over half of Black student loan borrowers have at least $25,000 in student loan debt from their own education, versus 41% of white borrowers and 37% of Hispanic borrowers.

This debt imbalance begins early on. Black bachelor's completers have higher levels of debt at graduation compared to peers of other races.

Student Loan Debt Owed vs. Amount Borrowed by Race

The National Center for Education Statistics (NCES) reported how much debt bachelor's degree-completers owe four years after graduation compared to the amount they borrowed. Below, find this figure represented as a ratio: 100% means that 12 months later, borrowers still owed the full amount of borrowed debt. More than 100% indicates that they owe more than the original loan amount due to accumulated interest.

Black bachelor's degree recipients are the only racial group to owe more on average than they initially borrowed four years after graduating.

Brookings' analysis found the debt gap between Black and white student borrowers more than triples by four years after graduation.^{Note Reference [7]} After four years, Black college graduates owe 6% more than their initial loan amount while white college grads owe 10% less than what they borrowed.

Student Loan Debt by Race Over Time

Until 2022, the median Black student loan debt increased faster than median student debt levels across other racial groups.

Student Loan Debt by Race and Gender

When looking at race and gender combined, Black women borrow the highest amount of student loan debt on average — over $20,000 more than white men, who borrow the least amount of student loan debt, on average.

Black Student Loan Debt

Across student loan debt by race statistics, Black borrowers consistently see the highest debt levels at the highest rates. Recent reports reveal:

• The Black-white student loan debt gap is greater than other debt gaps. It outweighs the gap correlated with household income level and the debt differences between first-generation students and students whose parents have college degrees.^{Note Reference [7], Note Reference [8]}
• Income inequality may hamper Black borrowers' ability to readily pay off student loan debt. Black graduates with a bachelor's degree or higher earned lower median incomes than white peers with similar educational attainment. Among 25-34-year-olds, Black bachelor's graduates earned annual median wages of $56,030 in 2022. That's roughly $14,000 less per year than white bachelor's grads.^{Note Reference [9]}
• The impact of generational wealth may deepen the Black-white student loan debt gap after graduation. White college graduates are more likely to receive financial support from their parents (e.g., toward their education or for a home purchase). In contrast, Black college graduates are more likely to financially support their parents.^{Note Reference [10]}
• Black parents who take out loans for their child's education are disproportionately impacted by debt. Parent PLUS loans offer fewer loan repayment and forgiveness options. Additionally, parents don't reap the rewards of the college degree they go into debt for.

Student Loan Payments by Race

Average Monthly Student Loan Payments by Race

To estimate monthly student loan payments by race, we used the average federal loan amount by race for bachelor's completers in 2019-2020, as reported by the NCES. We assumed a 10-year loan term at a student loan interest rate of 4.53% annually. Ten-year terms are standard for federal loans, and 4.53% was the set interest rate for federal undergraduate student loans when the data was collected.^{Note Reference [11], Note Reference [12]}

Keep in mind that monthly payment amounts look different for students with private loans, which can have higher interest rates and longer terms than federal loans. Payments could also be lower for borrowers who qualify for income-driven repayment plans, where borrowers only pay up to a certain percentage of what they earn.

Borrowers Behind on Loan Payments

In 2023, Black and Hispanic adults with student loan debt were more likely to be behind on student loan payments compared to white adults with debt.^{Note Reference [5]}

Defaulted Student Loans and Race

If you cannot pay your student loan, you may have options. For federal loans, you can apply for forbearance (a pause) or income-driven repayment. After not paying for an extended period, you go into default.

Defaulting on a loan can cause debt to snowball. It hurts your credit score, and lenders may even garnish wages from your paycheck.

An analysis of student loan default rates found that Black and Hispanic former students defaulted on student loans more than their Asian, Pacific Islander, and white peers.^{Note Reference [7]} Black college entrants defaulted on student loans at more than double the average rate.

Frequently Asked Questions About Student Loan Debt by Race