Average Student Loan Payment
Credit: Image Credit: Fiordaliso / Moment / Getty ImagesData Summary
The average federal student loan payment is about $302 for bachelor’s and $208 for associate degree-completers.[1]- The average monthly repayment for master’s degree-holders is about $688.[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.
If you’re a college student, you don’t have to begin paying off federal loans as long as you’re enrolled 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
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 — including a bachelor’s, associate, or undergraduate certificate — is $260.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 | $19,140 | $208 |
| Bachelor’s | $27,810 | $302 |
| Master’s | $59,110 | $688 |
| MBA | $56,850 | $662 |
| Doctorate | $80,590 | $938 |
| Law Degree (JD) | $145,540 | $1,694 |
| Medicine Degree (MD or DO) | $210,450 | $2,449 |
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 roughly $130 more than graduates of public colleges.
| Institution Type | Average Federal Student Loan Debt at Graduation | Average Student Loan Payment on Standard Repayment Plan |
|---|---|---|
| Public | $25,640 | $279 |
| Private Nonprofit | $29,290 | $318 |
| Private For-Profit | $38,090 | $413 |
Behind the Numbers
To calculate average student loan payments, we started with borrowers’ average federal student debt at graduation in 2021-2022 dollars. 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 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]
- Saving on a Valuable Education (SAVE): 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
The SAVE plan is the newest IDR plan launched by the Department of Education. Like the PAYE plan, it’s term is 20 years. However, in early 2024, the Biden administration announced loan forgiveness for borrowers on the SAVE plan who borrowed less than $12,000 if they have made 10 years worth of minimum payments.
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 about $300.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 $688 a month.
If you cannot afford your federal student loan payment, you may enroll in income-driven repayment. On the income-driven SAVE plan, you can pay 10% of your discretionary income against your student loans for 20 years.