A third of 25- to 34-year-olds have student debt — here’s how other age groups stack up

Younger Americans — specifically those who are 25 to 34 years old — make up the age group where student debt is most common. In fact, a third of adults in this age range have federal student loan debt, according to recent data from The Washington Post.

These findings don't come as much as a surprise as adults who are 25- to 34-years-old are likely all recent college graduates.

The next age group where we see student debt most widespread is in 18- to 24-year-olds, followed closely by those aged 35 to 49. Here's a full breakdown of the percentage of each age group with federal student loan debt:

While we ideally expect student debt loads to become smaller as people get older, since borrowers have more time to make payments, being in your later 20s and early 30s with student loans can certainly put you in a tough financial bind. In this age range you've had some time since graduating to build a career with a salary that allows you to make monthly payments, yet you're also faced with other competing financial commitments whether that be a first-time mortgage, building a family or even adding graduate student loans onto your higher education debt.

It's important for adults in this age group to consider what monthly payments are higher priority (things like rent, utility bills and a car loan). This can also include expenses that allow you to work and bring in income, such as child care costs. With federal student loan payments on pause, right now is a good time to make sure these other payments are taken care of.

Borrowers in any of the age groups outlined in the table above can still take advantage of the federal student loan payment and interest pause that has been in effect for the last two years and continues through Aug. 31, 2022. There are even talks now that President Biden may further extend the repayment pause.

Since your federal student loans aren't collecting interest, you may want to take advantage by prioritizing instead adding to your savings while banks are raising interest rates. A solid option is the high-yield savings account Marcus by Goldman Sachs High Yield Online Savings, which offers an above-average APY with no monthly fees and no minimum deposits.

Others who have some savings set aside can go ahead and continue making student loan payments even with the pause. Since any payments during the freeze will be made directly toward your principal, you can chip away at it faster than if you were paying on an interest-accruing balance. Plus, when the forbearance period does end and payments and interest resume, you will then have a smaller balance, which means less interest will be able to accrue.

If you have private student loans

Private student loan borrowers are in a different boat since there hasn't been a payment or interest pause on their loans. These borrowers may want to consider refinancing with a top lender to see if they can score a lower interest rate than the one they pay now.

With the expectation of more interest rate hikes in the coming months, now is a good time to refinance any high, variable-interest debt before it gets more expensive. Refinancing to a fixed interest rate locks you in for that same rate for the duration of your new loan term. In today's economic conditions, it's likely that a fixed rate today will be lower than a fixed rate months down the line.

A lender like SoFi* offers fixed-rate loans with loan terms of five, seven, 10, 15 and 20 years, plus no origination fees to refinance. Borrowers also have the option to apply with a co-signer, plus get access to financial advice from planners.

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*Fixed rates range from 3.99% APR to 10.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Variable rates range from 5.74% APR to 10.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. 

Unless required to be lower to comply with applicable law, Variable Interest rates will never exceed 13.95% (the maximum rate for these loans). SoFi rate ranges are current as of 8/19/26 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. You may pay more interest over the life of the loan if you refinance with an extended term.

Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly payments as outlined in your loan agreement by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. When the autopay interest rate deduction is added or removed, the next time the loan is re-amortized (quarterly for fixed rate loans; monthly for variable rate loans),the principal balance of your loan will be spread over the remaining loan term, and your monthly payment amount will change. This benefit is suspended during periods of deferment, grace period, or forbearance. Autopay is not required to receive a loan from SoFi.

Once you become eligible during the initial period, the discount will be removed or reinstated depending on whether the criteria have been met. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to modify or terminate this offer at any time for unenrolled participants. You are not required to meet these criteria to be approved for a loan.