What is a reasonable student loan payment?
Asked by: Dorothea Parisian | Last update: October 22, 2025Score: 4.6/5 (16 votes)
One rule to live by is to try to limit your total amount of student loans to a small percentage of what your expected annual salary may be from the first job you get after college. For example, you could decide that your monthly loan payment should be no more than 10 percent of your gross income.
What is a reasonable monthly student loan payment?
Average Student Loan Payments
As of May 30, 2023, the average monthly payment for federal student loans was estimated to be about $500 per month when adjusted for inflation. However, the final number depends on the type of loan, loan amount, interest rates, and repayment plan.
How much is the average student loan monthly payment?
The average monthly student loan payment is an estimated $500 based on previously recorded average payments and median average salaries among college graduates. The average borrower takes 20 years to repay their student loan debt.
Is $40,000 in student loans a lot?
Right now, the average student loan debt in the U.S. is nearly $40,000 but many students borrow much more. Depending on your field of study and career prospects, borrowing upwards of $100,000 to fund your higher education could either be a smart investment or a big mistake.
How much is a $30,000 student loan per month?
A $30,000 private student loan can cost approximately $159.51 per month to $737.38 per month, depending on your interest rate and the term you choose. But, you may be able to cut your cost by comparing your options, improving your credit score or getting a cosigner.
How To Find The Best Student Loans And Rates In 2025
How much would a $70000 student loan be monthly?
The monthly payment on a $70,000 student loan ranges from $742 to $6,285, depending on the APR and how long the loan lasts. For example, if you take out a $70,000 student loan and pay it back in 10 years at an APR of 5%, your monthly payment will be $742.
Is 30k a lot of student debt?
If you racked up $30,000 in student loan debt, you're right in line with typical numbers: the average student loan balance per borrower is $33,654. Compared to others who have six-figures worth of debt, that loan balance isn't too bad. However, your student loans can still be a significant burden.
How many people have over $100,000 in student loans?
Adults with a postgraduate degree are especially likely to have a large amount of student loan debt. About a quarter of these advanced degree holders who borrowed (26%) owed $100,000 or more in 2023, compared with 9% of all borrowers. Overall, only 1% of all U.S. adults owed at least $100,000.
How bad is 50k student debt?
Having $50,000 in student loan debt can be a tremendous financial burden. Depending on your interest rate and the types of loans you have, the payments can amount to a very large portion of your monthly budget.
How long does it take most people to pay off their student loans?
On average, people with student loans have spent just over 21 years paying back their loans. Federal student loans offer repayment plans that last from 10 to 30 years. Private student loan repayment terms vary.
What is the average student loan debt for a bachelor's degree?
The average federal student loan debt is $37,853 per borrower. Outstanding private student loan debt totals $128.8 billion. The average student borrows over $30,000 to pursue a bachelor's degree.
How much is the average college tuition for 4 years?
The average cost of attendance for a student living on campus at an in-state public 4-year institution is $27,146 per year or $108,584 over 4 years. Out-of-state students pay $45,708 per year or $182,832 over 4 years. Private, nonprofit university students pay $58,628 per year or $234,512 over 4 years.
How much do most people pay in student loans per month?
The average student loan payment is between $200 and $299, according to the most recent available data from the Federal Reserve.
What is a normal student loan repayment plan?
The Standard Repayment Plan is the basic repayment plan for loans from the William D. Ford Federal Direct Loan (Direct Loan) Program and Federal Family Education Loan (FFEL) Program. Payments are fixed and made for up to 10 years (between 10 and 30 years for consolidation loans).
How do I lower my student loan payments?
- Switch Repayment Plans.
- Update Your Current IDR Plan.
- Get Temporary Relief: Deferment or Forbearance.
- Review Your Loan Forgiveness Options.
What is the smartest way to pay off student loans?
- Make extra payments toward the principal. ...
- Enroll in autopay. ...
- Make biweekly payments. ...
- Pay off interest before it capitalizes. ...
- Stick to the standard repayment plan. ...
- Refinance if you have good credit, a steady job and private loans.
Are student loan payments tax deductible?
Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntarily prepaid interest payments. You may deduct the lesser of $2,500 or the amount of interest you actually paid during the year.
How much should I pay for a student loan?
The income thresholds are different for each plan type. You'll repay either: 9% of your income over the threshold if you're on Plan 1, 2, 4 or 5. 6% of your income over the threshold if you're on a Postgraduate Loan plan.
Why are student loans so hard to pay off?
Your interest charges will be added to the amount you owe, causing your loan to grow over time. This can occur if you are in a deferment for an unsubsidized loan or if you have an income-based repayment (IBR) plan and your payments are not large enough to cover the monthly accruing interest.
How much does the average American owe in student loans?
The average federal student loan debt balance is $38,375, while the total average balance (including private loan debt) may be as high as $41,520. 4.86% of federal student loans dollars were in default as of 2024's fourth financial quarter (2024 Q4); 1.61% of private student loans were in default as of 2024 Q1.
What is considered a lot in student loans?
What is considered a lot of student loan debt? A lot of student loan debt is more than you can afford to repay after graduation. For many, this means having more than $70,000 – $100,000 in total student debt.
What is a good monthly payment for student loans?
How Much of Your Budget Should Go Toward Student Loans? While everyone's situation is different, guidelines from the Department of Education suggest that student debt payments should stay around or below 20% of your discretionary income – or 8% of your total income each month.
How long does it take the average American to pay off student loans?
Standard repayment plans usually take about 10-30 years, while income-driven repayment plans can extend up to 25 years.