Americans have $1.7 trillion in student loan debt. How do they feel about it?

According to Bankrate’s 2024 Home Affordability Report, 35 percent of U.S. adults still consider a college degree an essential part of the American Dream. But with the cost of college more than doubling over the last two decades and debt reaching $1.7 trillion, do former students think that dream was worth it?

For those surveyed by Bankrate, the answer varies. Only 5 percent of U.S. adults in Bankrate’s Financial Regrets Survey say their biggest financial regret was taking on too much student loan debt to pay for school. But many also believe this debt is a national crisis, and that students need more education about student loans before taking them on.

Consider how the high cost of higher education is impacting Americans’ perception and experience with student loan debt.

Key advanced degree debt statistics

Who has student loan debt?

Americans across four generations (boomers, Gen Xers, millennials and Gen Z) have student loan debt. However, the majority of the population — regardless of their degree — don’t have student loans, and a great percentage of those who had them already paid them off, according to a Bankrate survey.

Mark Kantrowitz, a leading student loans expert, says, “If a borrower’s total student loan debt at graduation is less than their annual starting salary, they should be able to repay their student loans in ten years or less.”

Those with a postgraduate degree are both most likely to borrow for school and to still be repaying their loans, as shown in the table.

That said, postgraduate students were most likely to report having already paid off their student debt.

This is likely because, on average, those with advanced degrees earn around 45 percent more every week than those with a bachelor’s degree, and more than double the amount than those with just an associate’s degree.

Bankrate asked: Do you currently, or have you ever had, student loan debt for your own education?

How do people feel about student loan debt?

As part of Bankrate’s Student Loans and the Presidential Election Survey, U.S. adults were asked whether student loan debt is a national crisis.

The results were similar across college attendees.

• Some college, two-year degree: 31 percent agreed.
• Four-year degree: 35 percent agreed.
• Postgraduate: 37 percent agreed.

Meanwhile, only 24 percent of high school graduates and those without a high school diploma agreed that student loan debt is a national crisis.

The results come as no surprise considering that the cost of higher education has more than doubled over the last 20 years. Not only that, but stubborn inflation and rising interest rates have been squeezing Americans’ budgets since the COVID-19 pandemic, making it harder not only to afford a college education but also everyday expenses.

And unfortunately, says Kantrowitz, budgets will continue to stretch.

To reduce your or your child’s student loan debt burden, fill out the FAFSA and max out gift aid and federal loans before turning to private student loans.

Student loans and financial assistance

Although the Department of Education has put in place a series of protections, including forgiveness programs and income-driven repayment plans, to reduce the burden of student loan repayment on Americans, many think it’s not enough.

Of U.S. adults polled in Bankrate’s Student Loans and the Presidential Election Survey, 27 percent agreed that the federal government has not done enough to provide financial assistance to borrowers.

That included:

• No high school, high school graduate: 21 percent agreed.
• Some college, two-year degree: 29 percent agreed.
• Four-year degree: 31 percent agreed.
• Postgraduate: 36 percent agreed.

The high cost of college is at the top of many Americans’ minds as they prepare to cast their ballots in the upcoming election. Nearly 1 in 5 adults (18 percent) say student loan debt will have a major influence over their vote in the 2024 presidential election.

These voters will have plenty of food for thought as Republican official-led attempts to block the Biden administration’s relief efforts heat up. Currently, student loan payments and interest accumulation are on pause for about 8 million SAVE plan enrollees as the appeals process plays out.

Financial literacy for student loans

Student loan debt can stay with borrowers for decades. Fourty-four percent of U.S. adults in Bankrate’s Financial Regrets Survey agree that students are not educated enough about the financial implications of taking on student loan debt before borrowing. The percentage of Americans who agree with that statement grows with their level of education.

Fifty-two percent of postgraduates agree with the statement, compared to 37 percent of those without a high school diploma and high school graduates. Those with some college or a 2-year degree and 4-year degree holders averaged in the middle, at 47 and 49 percent, respectively.

This is concerning, especially considering that 47 percent of U.S. adults say that money issues negatively impact their mental health.

Being financially literate and fully understanding the financial implications of their financial actions can potentially help people save money by making better financial decisions. This, in turn, can alleviate stress and improve their overall quality of life.

The key to students achieving college dreams, says Kantrowitz, is “to borrow a reasonable amount of money and to graduate. Borrow what you need, not as much as you can.”

He encourages borrowers to choose a less-expensive college or one with a “no loans” financial aid policy.

That said, financial literacy is just a piece of the puzzle when it comes to higher education and student loans. Borrowers and students must understand all of their options regarding student loans so they can compare student loan rates and make decisions that will benefit them in the future instead of hindering their growth.

• Methodology

  The survey on homeownership and the American Dream was conducted by YouGov Plc. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,317 adults. Fieldwork was undertaken between 6th-8th March 2024. The survey was carried out online. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.

  Bankrate commissioned YouGov Plc to conduct the survey on the upcoming presidential election. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,407 U.S. adults, including 1,033 who have had or currently have student loan debt for their own education or that of another. Fieldwork was undertaken between May 16-20, 2024. The survey was carried out online and meets rigorous quality standards. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.

  All figures regarding money and mental health, unless otherwise stated, are from YouGov Plc. Total sample size was 2364 adults, of whom 1,109 have concerns over money which impact their mental health. Fieldwork was undertaken between 18th – 20th March 2024. The survey was carried out online and meets rigorous quality standards. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.

  Bankrate commissioned YouGov Plc to conduct the Financial Regrets Survey. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 3,684 U.S. adults, of whom 1,400 have ever had a student loan and 588 currently have student loan debt. Fieldwork was undertaken on June 12-15, 2023. The survey was carried out online and meets rigorous quality standards. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.