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That average is the mean (we can tell because it roughly equals $1.76 trillion divided by 46.9 million borrowers). The mean is notorious for being affected by

That average is the mean (we can tell because it roughly equals $1.76 trillion divided by 46.9 million borrowers). The mean is notorious for being affected by outliers, that is, the few borrowers like doctors who owe tremendous sums. (As GP says, "the nightmare stories you hear are about the small, vocal minority") If 90% of borrowers only owed $10k each, and the other 10% owed 210k each, the average would be $30k per borrower. In fact, if 90% of borrowers only owed 1k each, and 10% owed 300k each, the average would still be over $30k. Edit: According to the census, the median student loan debt is slightly under $20k, which certainly seems like an amount that people can pay off. https://www.census.gov/library/stories/2021/08/student-debt-weighed-heavily-on-millions-even-before-pandemic.html https://www.census.gov/library/stories/2021/08/student-debt-...

elliotec 3y ago
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. This reflects the central tendency of student loan debts, providing a perspective less influenced by extreme high or low values compared to the average debt amount. 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...
- leereeves 3y ago
  Yeah, I just added a similar figure to my post. To me, that seems consistent with "very little debt" as discussed above. It's less than the cost of an economy car, for an education that increases average lifetime earnings by over a million dollars.
  - shkkmo 3y ago
    That's the current debt load, not the debt load graduated with nor the amount that will end up paid over the lifetime of the debt. Even so, calling a 5 figure debt load "very little" is flat out ridiculous.
    - leereeves 3y ago
      It's a few percent of the million dollars or more that a good education is worth. Very little indeed.
    - smt88 3y ago
      $25,000 is basically nothing compared to the extra earning potential of the degree. It's less than a lot of cars. A good saver could pay it off in under 5 years without noticing a decrease in lifestyle.
      - shkkmo 3y ago
        Oh good. Glad you make enough money to view 25k as such a measley sum. Most people don't and this median debt load already mostly excludes people like you who payed off thir debt in 5 years. It so funny that you guys are so quick to point out the difference between media and mean when it serves your world view but completely ignore all the other statistical factors. Like comparing q lifetime average earnings of all college graduates aganist the median debt load of those who still have debt. Rich people don't leave college with as much debt and don't hold it as long. Not all degrees pay equally so people with lower paying degrees will be disproportionately represented in that data set. I know many college graduates for whom even making minimum payments on a 25k debt would significantly impact their quality of life. You don't have to feel guilty for your privilege, but don't let it blind you to reality.
        leereeves 3y ago
        > Not all degrees pay equally so people with lower paying degrees will be disproportionately represented in that data set. This is true. A degree that doesn't increase earnings by at least $1/hour (enough to cover the payments on a $25k student loan), is a financial mistake. If someone spends four years doing what they love and not working, without a care for what will happen afterwards, they should expect it to significantly impact their quality of life afterwards. Being able to do that at all is quite a privilege. I come from a working class family in which most people didn't go to college, so I don't forget what a privilege it was to be able to go to college nor how valuable a well chosen education is.

elliotec 3y ago

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. This reflects the central tendency of student loan debts, providing a perspective less influenced by extreme high or low values compared to the average debt amount. 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...

leereeves 3y ago
Yeah, I just added a similar figure to my post. To me, that seems consistent with "very little debt" as discussed above. It's less than the cost of an economy car, for an education that increases average lifetime earnings by over a million dollars.
- shkkmo 3y ago
  That's the current debt load, not the debt load graduated with nor the amount that will end up paid over the lifetime of the debt. Even so, calling a 5 figure debt load "very little" is flat out ridiculous.
  - leereeves 3y ago
    It's a few percent of the million dollars or more that a good education is worth. Very little indeed.
  - smt88 3y ago
    $25,000 is basically nothing compared to the extra earning potential of the degree. It's less than a lot of cars. A good saver could pay it off in under 5 years without noticing a decrease in lifestyle.
    - shkkmo 3y ago
      Oh good. Glad you make enough money to view 25k as such a measley sum. Most people don't and this median debt load already mostly excludes people like you who payed off thir debt in 5 years. It so funny that you guys are so quick to point out the difference between media and mean when it serves your world view but completely ignore all the other statistical factors. Like comparing q lifetime average earnings of all college graduates aganist the median debt load of those who still have debt. Rich people don't leave college with as much debt and don't hold it as long. Not all degrees pay equally so people with lower paying degrees will be disproportionately represented in that data set. I know many college graduates for whom even making minimum payments on a 25k debt would significantly impact their quality of life. You don't have to feel guilty for your privilege, but don't let it blind you to reality.
      - leereeves 3y ago
        > Not all degrees pay equally so people with lower paying degrees will be disproportionately represented in that data set. This is true. A degree that doesn't increase earnings by at least $1/hour (enough to cover the payments on a $25k student loan), is a financial mistake. If someone spends four years doing what they love and not working, without a care for what will happen afterwards, they should expect it to significantly impact their quality of life afterwards. Being able to do that at all is quite a privilege. I come from a working class family in which most people didn't go to college, so I don't forget what a privilege it was to be able to go to college nor how valuable a well chosen education is.