Student loans debt is the fastest growing category of consumer debt in the US and is now the largest form of non-mortgage debt. The Department of Education reports that federal student loans reached $1.6 trillion in 2020, with the average borrower owing $36,500. About one in five working-age Americans, or 43 million people, carried federal student loan debt in 2020. This is a 50% increase in the number of borrowers and almost triple the amount of debt carried since 2007.
Student loans fall into two categories — federal and private. Federal loans comprise most student loans. During the 2020 presidential campaign, many candidates discussed possibilities for student loan forgiveness.
