I prefer the term “education loan” which describes what the loan is for, just as we have “car loans” (not driver loans).
Unfortunately, the government does not collect much data on borrowers: What degree did they pursue? Did they attend a public or private institution?
Instead, only generalizations about loan holders can be inferred or implied from surveys.
The general assessment is that about 38% of those attending public colleges took on debt and up to 60% those attending a private college took on debt. Here though, there are more students who attend public than private colleges, but students at private colleges take on larger debts.
The average loan amount, at graduation for a Bachelor’s degree is around $30,000 plus or minus.
Who Takes on Education loans?
Humanities, arts, and social‑science majors borrow at similar or slightly higher rates than STEM majors
- Humanities and social‑science majors often attend private colleges which have higher costs and which increases borrowing.
- STEM majors are more likely to attend public universities and have higher family incomes on average.
2. Debt per borrower varies widely by major
Sources show that the highest debt loads tend to be in:
- Health professions
- Law
- Social work
- Education
- Arts programs
STEM fields generally fall in the middle of the debt distribution.
