What is the average amount of loans students have to pay off at the end of their bachelor degree?

Hi Simran,

Student debt in America is very common. On average in 2012 students with loans averaged $29,400 in debt. This amount has been steadily trending up in recent years. The amount of debt is somewhat lower if you attend a public school ($25,550) than if you attend a for-profit school ($39,950). This makes sense given the on-average higher cost of for-profit schools.

It's also important to note that you don't get the debt for free. In exchange for you borrowing the money, the institution that lends you the money usually wants to charge you a fee (we call it "interest"). Assuming you pay your loans back over the course of a decade, you might end up spending another $10,000 on the loan to pay for all of the interest.

I went to NYU, and when I graduated from college I ended up with a larger-than-average debt load. That's why it was so important that I planned ahead for my first job, and tried to secure my job as early as possible. I really needed to make sure that I was going to have a job that would give me enough money to get back on top of my debt, and start saving money for my family's needs.

The source I'm using is The Institute for College Access & Success' 2014 Quick Facts about Student Debt. http://bit.ly/1lxjskr.

All colleges vary with tuition. This depends on what college you go to. How much you take out etc. So many variables.

I think that the average loan amount this year for undergraduate students in the US is about $25,000.