what is federal student loan debt

Federal student loan debt is money borrowed from the federal government to help pay for education, which must be repaid with interest. Federal student loans are a form of financial aid intended to help students access higher education. Unlike other forms of financial aid such as scholarships, which are not repaid, and grants, which rarely have to be repaid, student loans must be repaid, with notable exceptions. Student loan debt has proliferated since 2006, totaling $1.73 trillion by July 2021. In 2019, students who borrowed to complete a bachelors degree had about $30,000 of debt upon graduation. Almost half of all loans are for graduate school, typically in much higher amounts. Loan amounts vary widely based on race, social class, age, institution type, and degree sought. As of 2017, student debt constituted the largest non-mortgage liability for US households. Federal student loans have terms and conditions that are set by law and include many benefits such as fixed interest rates and income-driven repayment plans.