This year, U.S. student debt levels set a new record. According to the St. Louis Federal Reserve, borrowers collectively owe over $1.5 trillion in student loans. Debt has become an inevitable part of going to college for millions of Americans. The most recent Survey of Household Economics and Decision-making (SHED) from the Federal Reserve Board indicates that 42 percent of Americans who attended college, and 30 percent of all adults, have incurred debt in order to finance a degree.

How much the average borrower owes

Based on SHED figures, Americans with education debt owe between $20,000 and $25,000 on average. The typical monthly payment is between $200 and $300 per month. There are several kinds of debt that Americans take on in order to afford an advanced degree, the most common being student loans. Among borrowers who took on debt to pay for their own schooling, 94 percent have taken on student loans, 25 percent have taken on credit card debt and 6 percent have taken on home equity loans. Americans are also increasingly likely to take on loans to help family members with their education expenses. Of these borrowers, 82 percent have taken on student loans, 22 percent have taken on credit card debt and 14 percent have taken on home equity loans.

How we got here