Student Loan Debt vs Other Debts

Student Loan Debt vs Other Debts

Report Highlights. Student loan debt makes up the 2nd largest quantity of debt within the nation behind mortgages.

  • Student loan debt in America has elevated by $165.9 billion since final yr.
  • Mortgages within the U.S. have elevated by $703 billion since final yr.
  • Auto loan debt in America has elevated by $80 billion since final yr.
  • Credit card debt within the U.S. has fallen by $73 billion since final yr.
  • The nationwide student loan debt is $1.44 trillion bigger than all of the money owed consolidated into the opposite class.

Student Loan Debt vs Mortgage Debt

Student loans account for 11% of whole nationwide debt whereas mortgages account for a lot of the nationwide debt at 69%. Mortgages dwarf student loans in measurement on the person, state, and nationwide scale. The compensation phrases of a mortgage are additionally lengthier than the common student loan.

  • The nationwide student loan debt is $1.71 trillion.
  • Nationally, mortgage represents $10.05 trillion of all debt.
  • The nationwide mortgage is roughly 6.5 occasions bigger than the student loan debt.

Repayment Terms

A major motive mortgages account for almost all of the nationwide debt is due to the prolonged size of their compensation interval. In a typical fixed-rate mortgage, funds are decided by the loan quantity, the loan time period, and the rate of interest. Student loans are thought of on the same foundation.

  • Typical normal compensation plans for federal student loans and personal student loans take a complete of 10 years to repay.
  • Mortgages sometimes are available 15 to 30-year fixed-rate loans.
  • For mortgages, the 30-year choice tends to be the preferred.
  • The common student loan debt is $39,351.
  • The common mortgage is $176,700.
  • The common mortgage is sort of 4.5 occasions bigger than the common student loan debt.
  • On common, the phrases of a mortgage lasts 27 years.
  • The typical month-to-month fee of a mortgage is $1,487.
  • The typical month-to-month fee on a student loan is between $200 and $299.

State Comparisons

In the American Housing Survey, the Census Bureau measured the mortgage traits of the common U.S. Home. The desk beneath compares a state’s common student loan debt with its common mortgage. Only 12 states had their common mortgage accessible.

  • California’s common mortgage is $140,900 greater than the nationwide common.
  • California’s common mortgage is sort of 9 occasions bigger than its common student loan.
  • Ohio has the bottom common mortgage at $113,500.
  • Texas has the bottom common student loan debt at $32,800.
  • Ohio’s mortgage is sort of 3.5 occasions bigger than Texas’ student loan.
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Average Debt by State
State Student Loan Debt Mortgage
California $36,400 $317,600
Colorado $35,800 $237,900
Florida $39,700 $158,800
Illinois $37,600 $154,100
Massachusetts $34,100 $239,800
Michigan $35,900 $121,076
New Jersey $35,100 $241,772
New York $37,800 $180,900
Ohio $34,600 $113,500
Pennsylvania $35,400 $133,900
Texas $32,800 $148,700
Virginia $39,000 $245,054

Student Loan Debt vs Auto Loan Debt

Auto loans make up the threerd largest type of the nationwide debt, instantly behind student loan money owed. Auto loans are inclined to have greater fastened rates of interest than federally backed student loans. Because federal student loans provide flexibility and loan forgiveness, it’s recommended people repay their auto loans first.

  • Student loans make up $1.71 trillion of the overall nationwide debt.
  • Auto loans at $1.37 trillion make up 9% of the nationwide debt.
  • The nationwide student loan debt is $340 billion greater than the auto loan debt.

Repayment Terms

Monthly automobile funds are decided by the person’s credit rating together with different variables. The main distinction between auto loans and student loans is in using credit scores. Student loans backed by the federal government don’t take credit scores under consideration.

  • The common auto loan is $19,865.
  • The common student loan debt is $39,351.
  • The common student loan debt is $19,486 bigger than the common particular person auto loan.
  • The typical month-to-month fee for a brand new automobile is $554.
  • The typical month-to-month fee for a used automobile is $391.
  • The typical month-to-month fee on a student loan is between $200 and $299.

State Comparisons

The common auto loan elevated in all 50 states from 2019 to 2020. Despite the disruption in journey as a result of Covid-19 the common auto debt nonetheless elevated over the yr. Student loan debt elevated within the states from 2019 to 2020 regardless of the federal suspension on funds.

  • Rhode Island has the bottom common auto loan debt at $15,485.
  • Wyoming has the best common auto loan debt at $25,522.
  • The District of Columbia’s student loan debt is $37,991 greater than its auto loan debt.
Average Debt by State
State Student Loan Debt Auto Loan Debt
Alabama $37,100 $21,655
Alaska $33,500 $23,158
Arizona $34,100 $21,945
Arkansas $33,300 $23,193
California $36,400 $19,713
Colorado $35,800 $20,731
Connecticut $34,900 $16,212
Delaware $37,000 $19,309
District of Columbia $55,400 $17,409
Florida $39,700 $20,110
Georgia $41,500 $21,696
Hawaii $36,500 $19,815
Idaho $32,600 $20,937
Illinois $37,600 $19,036
Indiana $32,800 $18,698
Iowa $30,500 $19,864
Kansas $32,500 $20,181
Kentucky $32,500 $19,336
Louisiana $34,400 $23,733
Maine $32,500 $17,696
Maryland $42,700 $20,195
Massachusetts $34,100 $15,887
Michigan $35,900 $15,638
Minnesota $33,400 $18,049
Mississippi $36,700 $21,915
Missouri $35,400 $19,459
Montana $33,300 $21,135
Nebraska $32,100 $18,951
Nevada $33,600 $21,727
New Hampshire $33,600 $17,654
New Jersey $35,100 $16,286
New Mexico $33,600 $23,772
New York $37,800 $16,483
North Carolina $37,500 $20,121
North Dakota $29,200 $21,834
Ohio $34,600 $17,409
Oklahoma $31,500 $23,302
Oregon $36,900 $19,096
Pennsylvania $35,400 $17,600
Rhode Island $31,800 $15,485
South Carolina $38,300 $19,996
South Dakota $31,100 $19,890
Tennessee $36,200 $21,077
Texas $32,800 $24,821
Utah $32,200 $20,346
Vermont $36,700 $17,879
Virginia $39,000 $20,013
Washington $35,000 $20,649
West Virginia $31,800 $22,553
Wisconsin $31,800 $17,661
Wyoming $31,000 $25,522
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Student Loan Debt vs Credit Card Debt

The general nationwide credit card debt dropped in 2020. In distinction, student loan debt rose in the identical yr. The common student loan debt could also be a lot greater, but the month-to-month funds for each money owed are practically the identical.

  • Student loans make up $1.71 trillion of the overall nationwide debt.
  • Credit Card debt at $820 billion makes up 5% of the nationwide debt.
  • The nationwide student loan debt is $890 billion greater than the credit card debt.

Repayment Terms

Experts counsel paying off credit card debt first due to the upper rate of interest on credit playing cards. Credit card money owed don’t provide compensation plans based mostly on earnings, capability to pay, monetary funds, or deferred funds, in contrast to student loans.

  • The common credit card debt per family is $5,315.
  • The common student loan debt is $39,351.
  • The common student loan is sort of 7.5 occasions bigger than the common credit card debt.
  • Credit playing cards can usually carry an rate of interest of over 20%.
  • Federal student loans often have an rate of interest beneath 10%.
  • The typical month-to-month fee on a student loan is between $200 and $299.
  • Payment on common for the month-to-month credit card invoice is $244.

State Comparisons

The states with the best common credit card debt in 2019 noticed the best decreases in 2020. In distinction, common student loan money owed elevated throughout all 50 states.

  • While not a state, Washington D.C. noticed credit debt shrink by 20% previously yr.
  • In Washington D.C., student loan debt is $49,729 greater than credit card debt.
  • Alaska had the best enhance in student loan debt at 14%.
  • Alaska has the best common credit card debt at $6,617.
  • Iowa has the bottom common credit card debt at $4,289.
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Average Debt by State
State Student Loan Debt Credit Card Debt
Alabama $37,100 $5,047
Alaska $33,500 $6,617
Arizona $34,100 $5,157
Arkansas $33,300 $4,791
California $36,400 $5,120
Colorado $35,800 $5,541
Connecticut $34,900 $6,040
Delaware $37,000 $5,462
District of Columbia $55,400 $5,671
Florida $39,700 $5,623
Georgia $41,500 $5,693
Hawaii $36,500 $5,614
Idaho $32,600 $4,582
Illinois $37,600 $5,365
Indiana $32,800 $4,651
Iowa $30,500 $4,289
Kansas $32,500 $5,063
Kentucky $32,500 $4,521
Louisiana $34,400 $5,127
Maine $32,500 $4,676
Maryland $42,700 $5,977
Massachusetts $34,100 $5,141
Michigan $35,900 $4,692
Minnesota $33,400 $4,767
Mississippi $36,700 $4,587
Missouri $35,400 $4,950
Montana $33,300 $4,785
Nebraska $32,100 $4,819
Nevada $33,600 $5,422
New Hampshire $33,600 $5,327
New Jersey $35,100 $5,978
New Mexico $33,600 $4,948
New York $37,800 $5,414
North Carolina $37,500 $5,121
North Dakota $29,200 $4,865
Ohio $34,600 $4,888
Oklahoma $31,500 $5,271
Oregon $36,900 $4,681
Pennsylvania $35,400 $5,090
Rhode Island $31,800 $5,256
South Carolina $38,300 $5,310
South Dakota $31,100 $4,633
Tennessee $36,200 $5,006
Texas $32,800 $5,848
Utah $32,200 $4,900
Vermont $36,700 $4,653
Virginia $39,000 $5,992
Washington $35,000 $5,238
West Virginia $31,800 $4,686
Wisconsin $31,800 $4,376
Wyoming $31,000 $5,182

Student Loan Debt vs Other Assorted Debts

The remaining 6% of the nationwide debt is made up of a compilation of sources. There is a few overlap in these money owed with different money owed. For instance, a person might repay their medical debt utilizing a credit card.

  • The median quantity of medical debt from 2017 was $2,000.
  • Revolving money owed are roughly $1 trillion of the nationwide debt.
  • If all U.S. residents had revolving debt, it might be $3,299 per particular person.

Sources

  1. Federal Reserve Bank of New York, Center for Microeconomic Data: Household Debt and Credit Report
  2. The Federal Reserve (The Fed): Report on the Economic Well-Being of U.S. Households in 2019 – May 2020
  3. Debt.org: Key Figures Behind America’s Consumer Debt
  4. Consumer Financial Protection Bureau (cfpb): How lengthy does it take to repay a student loan?
  5. Educationdata.org: Student Loan Debt by State
  6. United States Census Bureau, Who Had Medical Debt within the United States?: 19% of U.S. Households Could Not Afford to Pay for Medical Care Right Away
  7. Experian: U.S. Auto Debt Grows to Record High Despite Pandemic
  8. Northwestern University, Financial Wellness: Credit Cards vs. Student Loans