Higher education undergraduate student loan outlay by Household Residual Income

In 2022, the student loan default rate in the United States was highest for borrowers in the bottom ** percent of the family income bracket, at ** percent. In comparison, borrowers in the top 25 percent were least likely to default on their student loans.

Loan outlay, mean loan outlay per student, number of students and proportion of students by Household Residual Income band for 2019/20

EKOS Research Associates and the Canada Millennium Scholarship Foundation conducted a monthly national study of the finances of post-secondary students from September 2001 until May 2002. The study was designed to capture the expenses and income of students on a monthly basis, in order to profile the financial circumstances of Canadian post-secondary students and the adequacy of available funding. The Web based Students Financial Survey provided accurate, quantifiable results for the first time on such issues as the incidence and level of assistance, the level of debt from outstanding bank loans, personal lines of credit, and credit cards. The study also yielded up-to-date information on student assets (such as automobiles, computers, and electronics), student earnings, time usage, and types of expenses incurred. The survey featured a panel of 1,524 post-secondary students from across the country, who participated in a very brief monthly survey, either via Internet or telephone. Students were required to complete a longer baseline wave of the survey in order to participate in the study. The baseline survey asked a number of questions concerning summer income and existing debt, including credit card debt. This dataset was received from the Canada Millennium Scholarship Foundation as is. Issues with value labels and missing values were discovered and corrected as best as possible with the documentation received. The variable gasst: Do you receive any government assistance? was not corrected due to lack of documentation about this variable. Some caution should be used with this dataset. This dataset was freely received from, the Canadian Millenium Scholarship Foundation. Some work was required for the variable and value labels, and missing values. They were correct as best as possible with the documentation received. Caution should be used with this dataset as some variables are lacking information.

How high is the average student debt in the Netherlands? In 2016, a university (in Dutch: WO) graduate had a debt of around 10,700 euros. Newer numbers were not available, as the national system for student loans changed in 2015. In 2015-2016, the so-called basisbeurs (a conditional loan a student would receive in the Netherlands, which would turn into a gift when he/she graduated within ten years) was abolished. This currently means that if students need more money, they must loan it from the government. In 2017, the Dutch government granted 2.4 billion euros worth of loans to students.

University graduates had a higher chance of a student debt

The total student debt in the Netherlands was worth 11.2 billion euros in 2017. Roughly six out of ten research university graduates had a student debt. This was significantly higher than university of applied sciences graduates (in Dutch: HBO), of which 33 percent had a student debt.

Student debts influence house purchases in the Netherlands

In 2017, approximately 16 percent of all first-time homebuyers in the Netherlands consisted of the age group between 25 and 29 years old. This was a decrease from the approximately 25 percent in 2013. As (student) debts and personal income count towards mortgage requests and partly determine whether or not mortgage providers are willing to lend money for the purchase of a house, an increasing student debt made it more difficult for starters in the Netherlands to enter the real estate market. Mortgages are the most common way to finance real estate for households in the Netherlands.

Student Loan Market Outlook

According to our latest research, the global student loan market size reached USD 135.2 billion in 2024, reflecting the persistent demand for higher education financing worldwide. The market is expected to expand at a CAGR of 7.1% from 2025 to 2033, reaching an estimated USD 251.7 billion by 2033. This robust growth is driven by the increasing cost of tertiary education, rising enrollment rates, and evolving financial products tailored to diverse borrower needs. As per our latest analysis, the market is witnessing dynamic shifts in lender participation and repayment models, reflecting the changing landscape of global education finance.

One of the primary growth factors propelling the student loan market is the escalating cost of higher education across both developed and emerging economies. Tuition fees, living expenses, and ancillary costs have risen steadily, outpacing inflation and family income levels in many countries. This widening affordability gap has compelled students and their families to increasingly rely on external funding sources, particularly student loans. Simultaneously, the proliferation of private and alternative lenders has diversified borrowing options, making loans more accessible to a broader demographic. The emergence of income-driven repayment and refinancing solutions has further enhanced the market’s attractiveness, offering borrowers flexibility and financial relief over traditional rigid repayment structures.

Another significant factor impacting market growth is the ongoing digital transformation within the financial sector. Fintech innovations are streamlining loan origination, disbursement, and management, reducing operational costs for lenders and expediting the approval process for borrowers. Online lending platforms, powered by advanced analytics and AI, are enabling more personalized risk assessments and competitive interest rates, attracting tech-savvy students and parents. These platforms are also contributing to greater financial inclusion, particularly in regions where traditional banking infrastructure is limited. The integration of digital tools is not only enhancing the borrower experience but also improving portfolio performance for lenders through better risk management and customer engagement.

Demographic trends and government policies are also shaping the student loan market’s trajectory. The global surge in tertiary enrollment, especially in Asia Pacific and Africa, is expanding the borrower base. Governments in several countries are implementing supportive policies, such as interest subsidies, loan forgiveness programs, and flexible repayment schemes, to mitigate the financial burden on graduates and stimulate higher education participation. However, regulatory scrutiny around lending practices and concerns over rising student debt levels are prompting both public and private lenders to adopt more responsible lending and transparency measures. These dynamics are fostering a more balanced and sustainable growth environment for the student loan market.

Regionally, North America continues to command the largest share of the student loan market, driven by the United States’ mature lending ecosystem and high tertiary education costs. However, Asia Pacific is emerging as the fastest-growing region, fueled by rapid urbanization, expanding middle-class populations, and increasing investments in higher education infrastructure. Europe, meanwhile, exhibits steady growth, supported by government-backed loan schemes and cross-border education mobility. Latin America and the Middle East & Africa are witnessing gradual expansion, with rising demand for higher education and evolving financial services infrastructure. Each region presents unique challenges and opportunities, influencing lender strategies and market dynamics.

Type Analysis

The student loan market is segmented by type into federal loans, private loans, and refinancing loans, each with distinct characteristics and growth trajectories. Federal loans, primarily offered by government agencies, remain the dominant segment in markets such as the United States and several European countries. These loans typically feature lower interest rates, flexible repayment options, and borrower protections, making them the preferred choice for undergraduate and graduate students. The stability and accessibility of federal loans are underpinned by government backing, which reduces default ri

Denmark, the Netherlands, and Norway were among the European countries with most indebted households in 2023 and 2024. The debt of Dutch households amounted to *** percent their disposable income in the 2nd quarter of 2024. Meanwhile, Norwegian households' debt represented *** percent of their income in the 3rd quarter of 2023. However, households in most countries were less indebted, with that ratio amounting to ** percent in the Euro area. Less indebtedness in Western and Northern Europe There were several European countries where household's debts outweighed their disposable income. Most of those countries were North or West European. However, the indebtedness ratio in Denmark has been decreasing during the past decade. As the debt of Danish households represented nearly *** percent in the last quarter of 2014, which has fallen very significantly by 2024. Other countries with indebted households have been following similar trends. The households' debt-to-income ratio in the Netherlands has also fallen from over *** percent in 2013 to *** percent in 2024. Debt per adult in Europe In Europe, the value of debt per adult varies considerably from an average of around 10,000 U.S. dollars in Europe to a much higher level in certain countries such as Switzerland. Debts can be formed in a number of ways. The most common forms of debt include credit cards, medical debt, student loans, overdrafts, mortgages, automobile financing and personal loans.

The principal purposes of this national longitudinal study of the higher education system in the United States are to describe the characteristics of new college freshmen and to explore the effects of college on students. For each wave of this survey, each student completes a questionnaire during freshman orientation or registration that asks for information on academic skills and preparation, high school activities and experiences, educational and career plans, majors and careers, student values, and financing college. Other questions elicit demographic information, including sex, age, parental education and occupation, household income, race, religious preference, and state of birth. Specific questions asked of respondents in the 1982 survey pertained to PELL Grants and Guaranteed Student Loans (GSL), parents' status (full-time, part-time, lived stogether), whether students lived with their parents for more than two weeks of the year, whether students were listed as dependents on their parents' tax returns, and whether students received assistance worth $600 or more.

Debt Settlement Market size was valued at USD 4.45 Billion in 2024 and is projected to reach USD 11.22 Billion by 2032, growing at a CAGR of 14.12% during the forecast period 2026 to 2032. Global Debt Settlement Market Drivers:Household Debt Levels Globally: The demand for debt settlement services is expected to be fueled by rising consumer indebtedness driven by credit card usage, personal loans, and mortgages. According to the Federal Reserve Bank of New York, total household debt reached USD18.04 trillion in Q4 2024, representing a USD 93 billion (0.5%) increase from the previous quarter.Financial Stress Among Millennials: The adoption of debt settlement programs is anticipated to increase, supported by rising student loan burdens and limited income growth in younger demographics.

This dataset contains the customer's data from a loan company known as Prosper. This dataset comprises of 113,937 loans with 81 variables on each loan, including loan amount, borrower rate (or interest rate), current loan status, borrower income, and many others.

Definition of Variables:

ListingKey: Unique key for each listing, same value as the 'key' used in the listing object in the API. ListingNumber: The number that uniquely identifies the listing to the public as displayed on the website. ListingCreationDate: The date the listing was created. CreditGrade: The Credit rating that was assigned at the time the listing went live. Applicable for listings pre-2009 period and will only be populated for those listings. Term: The length of the loan expressed in months. LoanStatus: The current status of the loan: Cancelled, Chargedoff, Completed, Current, Defaulted, FinalPaymentInProgress, PastDue. The PastDue status will be accompanied by a delinquency bucket. ClosedDate: Closed date is applicable for Cancelled, Completed, Chargedoff and Defaulted loan statuses. BorrowerAPR: The Borrower's Annual Percentage Rate (APR) for the loan. BorrowerRate: The Borrower's interest rate for this loan. LenderYield: The Lender yield on the loan. Lender yield is equal to the interest rate on the loan less the servicing fee. EstimatedEffectiveYield: Effective yield is equal to the borrower interest rate (i) minus the servicing fee rate, (ii) minus estimated uncollected interest on charge-offs, (iii) plus estimated collected late fees. Applicable for loans originated after July 2009. EstimatedLoss: Estimated loss is the estimated principal loss on charge-offs. Applicable for loans originated after July 2009. EstimatedReturn: The estimated return assigned to the listing at the time it was created. Estimated return is the difference between the Estimated Effective Yield and the Estimated Loss Rate. Applicable for loans originated after July 2009. ProsperRating (numeric): The Prosper Rating assigned at the time the listing was created: 0 - N/A, 1 - HR, 2 - E, 3 - D, 4 - C, 5 - B, 6 - A, 7 - AA. Applicable for loans originated after July 2009. ProsperRating (Alpha): The Prosper Rating assigned at the time the listing was created between AA - HR. Applicable for loans originated after July 2009. ProsperScore: A custom risk score built using historical Prosper data. The score ranges from 1-10, with 10 being the best, or lowest risk score. Applicable for loans originated after July 2009. ListingCategory: The category of the listing that the borrower selected when posting their listing: 0 - Not Available, 1 - Debt Consolidation, 2 - Home Improvement, 3 - Business, 4 - Personal Loan, 5 - Student Use, 6 - Auto, 7- Other, 8 - Baby&Adoption, 9 - Boat, 10 - Cosmetic Procedure, 11 - Engagement Ring, 12 - Green Loans, 13 - Household Expenses, 14 - Large Purchases, 15 - Medical/Dental, 16 - Motorcycle, 17 - RV, 18 - Taxes, 19 - Vacation, 20 - Wedding Loans BorrowerState: The two letter abbreviation of the state of the address of the borrower at the time the Listing was created. Occupation: The Occupation selected by the Borrower at the time they created the listing. EmploymentStatus: The employment status of the borrower at the time they posted the listing. EmploymentStatusDuration: The length in months of the employment status at the time the listing was created. IsBorrowerHomeowner: A Borrower will be classified as a homowner if they have a mortgage on their credit profile or provide documentation confirming they are a homeowner. CurrentlyInGroup: Specifies whether or not the Borrower was in a group at the time the listing was created. GroupKey: The Key of the group in which the Borrower is a member of. Value will be null if the borrower does not have a group affiliation. DateCreditPulled: The date the credit profile was pulled. CreditScoreRangeLower: The lower value representing the range of the borrower's credit score as provided by a consumer credit rating agency. CreditScoreRangeUpper: The upper value representing the range of the borrower's credit score as provided by a consumer credit rating agency. FirstRecordedCreditLine: The date the first credit line was opened. CurrentCreditLines: Number of current credit lines at the time the credit profile was pulled. OpenCreditLines: Number of open credit lines at the time the credit profile was pulled. TotalCreditLinespast7years: Number of credit lines in the past seven years at the time the credit profile was pulled. OpenRevolvingAccounts: Number of open revolving accounts at the time the credit profile was pulled. OpenRevolvingMonthlyPayment: Monthly payment on revolving accounts at the time the credit profile was pulled. InquiriesLast6Months: Number of inquiries in the past six months at the time the cre...

The average amount of non-mortgage debt held by consumers in the United States has been falling steadily during the past years, amounting to ****** U.S. dollars in 2023. While respondents had ****** U.S. dollars of debt in 2018, that volume decreased to ****** U.S. dollars in 2019, which constituted the largest year-over-year decrease.What age groups are more indebted in the U.S.?The age group with the highest level of consumer debt in the U.S. was belonging to the Generation X with approximately ******* U.S. dollars of debt in 2022. The next generations with high consumer debt levels were baby boomers and millennials, whose debt levels were similar. In comparison, credit card debt is more equally distributed across all ages. There is an exception among people under 35 years old, who are significantly less burdened with credit card debt. However, most consumers expect to get rid of their debt in the short term. College expenses as a source of debtEducational expenses were not among the leading sources of debt among consumers in the U.S. in 2022. Instead, they made up about ** percent of the total. However, around ** percent of undergraduates from lower-income families had student loans, while over a fifth of undergraduates from higher-income families had student loans. Independently of how they cover these expenses, the confidence of students and parents about being able to pay these college costs was high in most cases.

The value of the debt per adult in Europe in 2022 varied a lot from country to country. While Swiss adults had on average over ******* U.S. dollars of debt in 2022, adults from Azerbaijan had a debt of *** dollars. Meanwhile, the average volume of debt in Europe that year was almost ****** U.S. dollars per adult. The household debt to disposable income ratio in Europe follows a similarly varied distribution. As varied as the volume of debts in Europe are, the most common forms of debt are still very similar and they tend to include: credit cards, medical debt, student loans, overdrafts, mortgages, automobile financing and personal loans.