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> When the media parades a student loan "victim" is that (e.g.) $100k of debt typical or atypical? It's atypical. Only 10% owe $100k or more: https://www.feder

> When the media parades a student loan "victim" is that (e.g.) $100k of debt typical or atypical? It's atypical. Only 10% owe $100k or more: https://www.federalreserve.gov/publications/2022-economic-well-being-of-us-households-in-2021-student-loans.htm https://www.federalreserve.gov/publications/2022-economic-we... > Most student loan borrowers owe less than $25,000 on their loans. The median amount of education debt in 2021 among those with any outstanding debt for their own education was between $20,000 and $24,999. One-quarter of student loan borrowers had less than $10,000 in outstanding student debt (figure 40). Student debt balances vary across different demographic groups. Borrowers with an income of less than $50,000 a year were more likely to carry lower balances of student loan debt.

35997279 3y ago
This is what has always confused me about the student debt conversation. $25,000 is not a lot of debt. That's about what it cost to get a brand new Toyota Corolla. On top of which, the terms of this debt is very favorable. PAYE, low interest rates (mind were 6.8%, which was outrageous at the time but now we're entering a more inflationary / normal interest rate world), and are termed for 20+ years. There is also a lot of debt taken on by graduate students. To be clear, only around 30% of Americans overall have even a bachelor's degree. The need to take on graduate school debt just simply isn't there in the way the taking on debt for undergraduate is. So I think these numbers should break out graduate students, especially those who went into high-earning professions with credential gatekeepers, like medicine (law is debatable -- we've minted way too many lawyers).
- anonymouskimmer 3y ago
  To be fair, I think those loans numbers are current balances, not original balances. So much of it represents originally larger balances that have now been paid down to less than $25k (while others represent balance increases due to capitalized-interest). Otherwise I agree with you. Grad-degree credentialism is a problem, especially in the STEM fields. Plenty of people, including some with student debt, can't afford a new Corolla (even ignoring the debt). They buy used.

35997279 3y ago

This is what has always confused me about the student debt conversation. $25,000 is not a lot of debt. That's about what it cost to get a brand new Toyota Corolla. On top of which, the terms of this debt is very favorable. PAYE, low interest rates (mind were 6.8%, which was outrageous at the time but now we're entering a more inflationary / normal interest rate world), and are termed for 20+ years. There is also a lot of debt taken on by graduate students. To be clear, only around 30% of Americans overall have even a bachelor's degree. The need to take on graduate school debt just simply isn't there in the way the taking on debt for undergraduate is. So I think these numbers should break out graduate students, especially those who went into high-earning professions with credential gatekeepers, like medicine (law is debatable -- we've minted way too many lawyers).

anonymouskimmer 3y ago
To be fair, I think those loans numbers are current balances, not original balances. So much of it represents originally larger balances that have now been paid down to less than $25k (while others represent balance increases due to capitalized-interest). Otherwise I agree with you. Grad-degree credentialism is a problem, especially in the STEM fields. Plenty of people, including some with student debt, can't afford a new Corolla (even ignoring the debt). They buy used.