Average Student Loan Debt Total Is More Than Credit Card Debt Average
According to the Federal Reserve Bank of New York, about 44 million Americans have $1.31 trillion in student loan debt. Put it this way - Americans have about $779 billion in credit card balances.
Americans who have student debt have an average of $37,100. In 2015, U.S. wages had an average of $48,000. The Social Security Administration noted there is very little disposable income to pay for debt obligations.
Of the outstanding student debt amount, about $31 billion (or 11%) are considered seriously delinquent, which means the debtor hasn’t made a payment in 90 days. $32.6 billion of debt was considered newly delinquent, which means the debt is only 30 days past due.
More than two million of people who have student loan debt owe more than $100,000 with another 415,000 owing more than $200,000. Most Americans who have student loans pay much less, with more than 30 million owing between $1 and $25,000.
During his campaign run, President Donald Trump offered a rather drastic change to the student loan program. He said students should not be paying back more debt they can reasonably afford. The debt, he said, shouldn’t be a noose around their neck for as long as they live.
His solution? It is to cap repayment to 12.5%. If borrowers make their full payments for 15 years, the rest of it will be written off. Trump said people can get on with their lives instead of worrying about their student loan debt.