🎓 Understanding Student Debt in America

What You Need to Know Before, During, and After College

Section 1 – The Big Picture

• 43.2 million Americans have federal student loans

• $1.7 trillion total U.S. student loan debt

• Average balance per borrower: $37,000

Section 2 – Types of Student Loans

Federal Loans:

• Fixed interest rates

• Flexible repayment options

• May qualify for forgiveness

Private Loans:

• Variable or fixed interest rates

• Less flexible repayment

• Usually require a co-signer

Section 3 – How Interest Works

• Interest accrues daily on your principal balance

• Unpaid interest can be added to your loan (capitalization)

• Paying more than the minimum can save thousands

Section 4 – Repayment Options

• Standard Plan: Fixed monthly payments (10 years)

• Income-Driven Repayment: Payments based on income

• Extended Plans: Lower payments, longer term

• Public Service Loan Forgiveness (PSLF): Forgive balance after qualifying payments

Section 5 – Tips to Reduce Debt

• Make extra payments when possible

• Refinance if you can secure a lower rate

• Avoid borrowing more than you need

• Apply for scholarships & grants before loans

Section 6 – Resources

• Federal Student Aid: studentaid.gov

• Loan simulator tools

• Financial counseling hotlines

“The more you know, the less you owe.”
“This infographic is for educational purposes only and is not financial advice.”