30 Years of Student Loans

Student loans are a ball and chain around the necks of millions of Americans. It didn't used to be this way. The first time the Federal Reserve fielded the Survey of Consumer Finances in 1989, only 8.9 percent of households had student loans. Those households owed a median of just $6,000 (in 2019 dollars) in education debt. Thirty years later in 2019, a much larger 21.4 percent of households had student loans, and they owed a median of $22,000. 

Of course, younger adults carry the biggest burden of student loans. Among householders under age 35, the share with education debt climbed from 17 percent in 1989 to 41 percent in 2019. A growing share of middle-aged householders also have education debt. Take a look...

Percent of households with education debt by age of householder, 1989 and 2019

	2019	1989
Total households	21.4%	8.9%
Under age 35	41.4	17.1
Aged 35 to 44	33.7	10.9
Aged 45 to 54	23.3	7.3
Aged 55 to 64	12.2	4.1
Aged 65 to 74	4.2	NA
Aged 75-plus	NA	NA

NA = Too few cases to make an estimate.

The rise of education debt helps to explain why the net worth of householders under age 55 was lower in 2019 than it was in 1989, after adjusting for inflation. The net worth of householders aged 55 or older increased during those years...

Net worth of households by age of householder, 1989 and 2019 (in 2019 dollars)

	2019	1989	percent change
Total households	$121,800	$93,600	30.1%
Under age 35	14,000	16,200	-13.6
Aged 35 to 44	91,100	112,500	-19.0
Aged 45 to 54	168,800	195,100	-13.5
Aged 55 to 64	213,200	195,300	9.2
Aged 65 to 74	266,100	154,300	72.5
Aged 75-plus	254,900	144,300	76.6

Source: Demo Memo analysis of the Federal Reserve Board's Survey of Consumer Finances