Student Loan Debt by Age

Like other significant debts, student loans can follow a borrower for a substantial portion of their life. Additionally, loan debt affects some people more severely than others, with notable differences by race, gender, and age group.

When you look at student loan debt by age, the discrepancies among age cohorts are affected by both the tuition rates in effect, when the members of each age group attended college, and by whether the older cohorts took on additional or new debt by co-signing or borrowing on behalf of a family member. Additionally, interest rates can increase loan balances over time, even as participants begin paying them off.

Because student loans aren't self-amortized, borrowers do not have the luxury of a set repayment schedule to ensure that an agreed-upon term repays the debt. When it adds up, student debt can cause a variety of financial hardships, but how keenly a person feels it may be different depending on their age and stage of life.

Understanding Student Loan Debt

Student debt represents how much an individual owes after securing financing for higher education from the federal government, a private lender, or both. This money can cover tuition, textbooks and other school supplies, basic living expenses, and other costs.

As of Q2 2024, at $1.62 trillion, Americans collectively had more student loan debt than the gross domestic product (GDP) of most countries on Earth. Those who cannot afford their debt repayments will experience their loans becoming delinquent if they are late by one day. This can result in their debt defaulting after a sufficient amount of time passes without payment. 

Having loans that lapse into either of these states can significantly damage a borrower's credit score and credit report. Keeping up with timely loan repayments can also make it harder to save for emergencies and major purchases, such as a house or a car.

Age and Student Loan Debt

Given that the cost of higher education has continued to rise—and considering that debt fluctuates over time depending on payments and interest rates, borrowers would owe different amounts depending on their age.

Below are the age groups used by the federal government. These will serve as the "baseline" for this article: Should a source use different age ranges than the ones listed above, their data will be presented as reported. Additionally, as many of these studies are not updated annually, data may be sourced from different years. Below are the findings from our research on student loan debt by age.

• 24 and Younger: Generation Z (12–24)
• 28 to 34: Majority of the millennial generation
• 35 to 49: Millennials (35–43); Generation X (44–49)
• 50 to 61: Generation X (50–59); baby boomers (60–61)
• 62 and Older: Baby boomers (62–78); silent generation (79–96)
  

Why Is Student Loan Debt Different Than Other Debt?

What makes student loan debt different from many other kinds of borrowing is that it can have a multigenerational impact. If your parents take out money from their retirement to pay for college or pay off their child's student loans, it can impact their safety net for the future. In addition, student loans are essentially unsecured debt. Unlike a mortgage, where your home acts as collateral, you cannot recoup an education.

Most students will likely have to take out a student loan, as potential scholarships and/or parental financial assistance may not be enough to cover all expenses. What's more, the amounts borrowed will likely continue to rise in the future, given that the cost of education has been steadily increasing.

Size of Student Loan Debt by Age

The first factor to consider is the actual size of each group's debt burdens. When looking at total student loan debt by age, at $634.8 billion in Q2 2024, 35-to-49-year-old borrowers owed the most substantial amount. The second-highest amount belonged to the 25-to-34 demographic, which owed $489.6 billion in total as of this same period. Those between 50 and 61 owed $284.5 billion. At $99 billion, the smallest amount of total student loan debt belongs to the 24-and-younger group.

Who Has the Least Debt?

According to Federal Student Aid, 24-and-younger borrowers are the only age group to owe less student loan debt in 2024 than in 2017. This may be the result of certain periods of declining college enrollments.

The other groups have experienced their total debt burdens increasing at different rates. For example, the total student loan debt owed by the 62-and-older borrowers has increased by $63.9 billion from Q2 2017 to Q2 2024.

This could result from the oldest borrowers returning to school to improve their career prospects or taking out loans to support their children/grandchildren's education(s).

The largest increase was for the 35-to-49-year-olds who experienced a $150 billion increase. This number is much higher than the $12.2 billion increase in total borrowing experienced by the 25-to-34-year-olds.

Student Loan Debt by Age and State

Additionally, due to education costs and other expenses varying by state, the amount of student loan debt by age differs between each U.S. state. This can be seen both in how many borrowers reside in an individual state and the total amount owed by each age group.

When looking at Federal Student Aid's state-by-state breakdown of student loan debt as of Q2 2024, California is notable for having the highest values in almost all measured categories:

• Total Borrowers: 3.94 million
• 24 or Younger (Total): $7.5 billion
• 25 to 34 (Total): $48.23 billion
• 35 to 49 (Total): $58.24 billion
• 50 to 61 (Total): $24.01 billion
• 62 and Older (Total): $10.77 billion

Conversely, Wyoming has the lowest values in nearly every measured category:

• Total Borrowers: 55,600
• 24 or Younger (Total): $90 million
• 25 to 34 (Total): $460 million
• 35 to 49 (Total): $760 million
• 50 to 61 (Total): $29 million
• 62 and Older (Total): $11 million

How Age Shapes Student Loan Debt

The differences among the age groups tell how Americans experience student loan debt over a lifetime—first their debt and then, potentially, debt for children and sometimes grandchildren or other family members.

However, it's important to remember that correlation doesn't necessarily equal causation, and the government's data doesn't tell the whole story. In addition to age in and of itself, the following three factors are also crucial for understanding student loan debt balances by age:

• Number of borrowers: The number of individuals within an age range will naturally affect the total student loan debt owed by said group. This information can also calculate a cohort's student loan debt per capita.
• Generational wealth: Borrowers with greater access to generational wealth will have more resources to pay down student loan debt faster, without sacrificing their ability to save for other important purchases.
• Delinquency and default: Those who cannot repay their debt will experience their balances increasing over time. The impact on their credit will limit their ability to support themselves financially.

Which Age Group Has the Most Borrowers?

The number of borrowers per group is one of the most important contextual pieces of information to have when analyzing student debt by age. After all, if one age range has a higher debt burden than another and has more borrowers, then it's safe to assume that the higher amount is at least partially the result of more people taking out similar amounts of debt.

According to Federal Student Aid, the largest group of borrowers was 25-to-34-year-olds, at 14.8 million as of Q2 2024. Close behind them were 35-to-49-year-olds, a group of approximately 14.6 million borrowers during that same period. The third-largest, 24-and-younger borrowers, was noticeably lower, with 6.8 million. The smallest amount was the 62-and-older group at 2.8 million.

Which Age Group Owes the Most Per Person?

By dividing the total student loan debt per generation by the relevant number of borrowers, we can calculate student loan debt per capita by age.

Although this effectively assumes that all borrowers have the same amount of debt, which isn't true, it still provides valuable insight.

As of Q2 2024, the 50-to-61 age group had the highest average student loan debt per person, at $45,159. The 35-to-49 age group was close behind, with an average of $43,479 per borrower. At $14,559, borrowers 24 years old and younger had the smallest student loan debt on average.

The 62 and older age group has experienced the most significant increase in their average student loan debt since 2017. Conversely, the 24-and-younger range was the only one to experience a decrease in the average student loan debt per borrower during that same period.

Based on this data, we can infer that the larger number of borrowers may explain why the 35-to-49-year-old group's burden is so high. After all, the more borrowers there are, the more debt there will be in total. However, the 25-to-34 group ought to have the highest debt balance by that logic.

Which Age Group Has More Generational Wealth?

Generational wealth is a trickier factor to quantify, as it comprises several different elements. Generational wealth can take the form of gifts (whether these be sums of money or valuable items) and pay for educational and/or medical expenses. Then there's inheritance, which is when a person can receive the bulk of their family's generational wealth en masse after a relative's passing if they were included in the deceased's will.

The main idea is that if a family has had more wealth across generations, their descendants will have greater financial resources outside of what they earn through their careers. The opposite is true, as those with less access to generational wealth may have to spend more of their earned income to support their still-living family members. The much heavier student debt burden faced by people of color stems mainly from America's substantial generational wealth gap by race.

Baby boomers would most likely already have received wealth transfers from their parents who most likely will have passed by 2024. Having greater access to generational wealth may be one reason the oldest age group has the lowest total student loan debt.

Others are that they likely have paid off their own student debt. In addition, college costs when they were students were much lower than they are now.

According to a study by Cerulli Associates, by 2045, Gen X will receive a total wealth transfer of $30 trillion, millennials a total of $27 trillion, and Gen Z a total of $11 trillion, which will greatly change the figure of total debt burdens.

Which Age Group Is More Likely to Miss Payments?

The serious consequences of failing to make on-time payments make high student loan burdens a major stressor. However, having large amounts of education debt doesn't necessarily correlate with difficulty repaying it (think of a physician in a thriving practice repaying medical school loans). To determine which age groups are genuinely struggling with their education debt, we must consider default rates and delinquency amounts by age.

According to reports, before COVID-19, the total amount of delinquent student debt owed by each age range was the lowest for the most overdue loans. Borrowers aged 35-to-49 had the highest amount across all categories, with their $15.5 billion owed for the 31–90 days delinquent category being the highest overall. Close behind this group was the 25-to-34 age range, owing $12 billion for the same period.

However, the third-lowest group owed slightly over half as much as its predecessor within this time frame. At $0.04 billion, the lowest overall amount was owed by 24-and-younger borrowers with debt payments that are 361+ days delinquent.

The Bottom Line

With so many factors in play, it's difficult to nail down specific reasons for the discrepancies in student loan debt by age—or whether the patterns we see today will continue. Current Federal Student Aid data shows that middle-aged borrowers are struggling the most with high student loan debt, and they are the most likely to suffer from delinquency and default as a result.

We don't know whether millennial and Gen X borrowers will receive increased wages and experience lower debt burdens over time, as has happened with today's older age cohort. Or will they carry their student debt problems into later years, resulting in a new debt surge in older age groups? One concern: Social Security benefits can be garnished to pay federal student debt.

Total student loan debt balances have been steadily increasing across nearly all age ranges over the last four years, which could be a result of the growing cost of education.

Once more members of Gen Z graduate and have time to accumulate interest, we should gain a better understanding of the long-term impact of age on student loan debt.