US College Loan Debt 2-18-26

As of early 2026, total U.S. student loan debt is approximately $1.77 trillion to $1.83 trillion, with roughly 43–45 million borrowers. The average federal student loan debt is around $37,000–$39,500 per borrower. Mounting distress has led to significant delinquency, with millions of borrowers in default or severely behind on payments.  

Key statistics for 2026 include:

Total Debt: Estimates range between $1.7 trillion and $1.83 trillion, encompassing federal and private loans.

Borrower Distress: Over 12 million borrowers are in default or delinquent, facing a potential "default cliff".

Average Debt: The average total student loan debt is approximately $43,333.

Policy Changes: Starting July 2026, new loan limits for graduate and professional students will be implemented ($20,500–$50,000 per year) to curb rising debt.

Default Data: Over 3.6 million borrowers have defaulted since January 2025, with $92+ billion in defaulted debt. 

The Education Data Initiative highlights that student loan debt continues to be a major financial burden for many, with 25% of adults aged 18 to 29 reporting student debt. 

Key Debt Statistics for 2026

Total National Debt: Approximately $1.77 trillion as of May 2026, according to the Education Data Initiative.

Borrower Count: Roughly 42.7 million to 45 million Americans hold student loan debt.

Average Debt per Borrower:

The average balance for a borrower with a bachelor's degree is $35,530.

The average federal student loan balance is $39,547.

Generational Breakdown:

Generation X: Highest average balance at $44,240.

Millennials: Largest share of total debt, with an average balance of $40,438.

Generation Z: Fastest-growing segment, though with a lower average balance of $22,948. 

Major Policy and Regulatory Changes in 2026

Significant changes to federal student loans are scheduled for July 2026 under new legislation: 

New Borrowing Caps: Starting July 1, 2026, new annual federal loan limits will be introduced for certain borrowers:

Graduate Students: Capped at $20,500 per year with a $100,000 aggregate limit.

Professional Students: Capped at $50,000 per year with a $200,000 aggregate limit.

Parent PLUS Loans: Capped at $20,000 per year per student, with a $65,000 lifetime limit.

Repayment Plan Shifts: New borrowers after July 2026 may be automatically enrolled in the Repayment

Assistance Plan (RAP) or the Standard plan. Existing borrowers who take out new loans after this date may also be required to consolidate under these new rules.

Interest Rates: Estimates for the 2025-2026 academic year suggest a slight decrease, with undergraduate rates projected at 6.39% and graduate rates at 7.94%. 

Economic Outlook

While total debt continues to rise, the federal government's fiscal cost for new loans is projected to drop significantly due to these reforms. However, delinquency remains a concern, with roughly 12 million borrowers reported as delinquent or in default by early 2026. 

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