Student loan debt by age: How do you compare — and how can you pay it off?

Starting July 2026, federal student loans will be overhauled: Existing borrowers will lose access to several income-driven repayment plans and must switch to a tiered standard plan or the new Repayment Assistance Program (RAP) by July 2028.

If not, they'll be reclassified into RAP by default.

Close to 43 million Americans are carrying roughly $1.83 trillion in student loans, according to Federal Student Aid data, 90% of which are federal loans.

At $47,857, the six million-plus borrowers aged 50 to 61 have the highest average balance among age groups.

Historically, people in their 50s still have other large expenses (mortgages, college-aged kids, aging parents) but the Latchkey Generation has topped the list for more than 20 years.

Most went to college in the mid-1980s and 90s, when tuition costs rose sharply and federal loan limits expanded. They also entered the job market during a series of economic downturns, including the dot-com bubble of 2000-2001 and the Great Recession of 2008-2009. Limited job opportunities and slower wage growth meant longer repayment periods and growing interest balances.

In addition, a larger proportion of Gen Xers attended graduate school or pursued mid-career training, meaning they took on more debt later in life.

As their kids reached college age, many Gen X parents took out Parent PLUS loans to help cover soaring tuition costs. That means they're juggling both their own loans and their children's PLUS loans. 

Income-Driven Repayment plans (IDR): Based on income and family size, IDR payments are 10% to 20% of a borrower's discretionary income (and can be as low as 0% per month). Starting July 2026, most IDRs are being phased out in favor of a new Repayment Assistance Plan (RAP) and tiered standard plan.

Public Service Loan Forgiveness (PSLF): After 120 monthly payments, full-time non-profit or government employees may qualify for loan forgiveness.

Loan consolidation: Multiple federal loans can be merged into a single Direct Consolidation Loan.

Deferment, forbearance and forgiveness: You can request a temporary pause or reduction in payment. There are also multiple forgiveness options for teachers, including the Teacher Loan Forgiveness Program, which erases up to $17,500 of direct subsidized/subsidized or Stafford loans after five years teaching in a low-income school.

Private student loans lack federal protections like income-based repayment plans, deferment and forgiveness.

Refinancing: Refinancing can lower your rate or make your term more manageable. It can also consolidate multiple loans into one. If your credit score has improved, it’s worth seeing if you qualify for a low rate. You can refinance with your current lender (if they offer it) or with a different company.

Debt consolidation: If you have multiple private student loans, a debt consolidation loan can streamline them into a single monthly payment, usually with a lower rate.

In addition to offering flexible credit score requirements and terms, Best Egg sends payments directly to your creditor and approves loans for up to $50,000.

Deferment and forbearance: Few private lenders have deferment or forbearance options, but Sallie Mae®* will defer private student loan borrowers while they’re in school or pursuing an internship, residency, fellowship, or clerkship.

Debt relief: A debt relief company will negotiate with your creditors to get your bills lowered. They only work with unsecured debt, such as credit card bills or private student loans. The fee for their services can be up to 25% of your enrolled debt, and your credit score will take a real hit, so make sure you calculate whether you come out ahead financially.

Bankruptcy: It's a difficult process, but you can file either Chapter 7 (liquidation) or Chapter 13 (repayment plan) and have federal or private student loans discharged.

To qualify, you must first file a lawsuit in which you prove "undue hardship," meaning you can't maintain a minimal standard of living while making payments and that the situation will likely continue.

Bankruptcy will remain on your credit report for up to 10 years.

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