Who’s borrowing student loans in 2025? A look at Earnest borrower trends

By Corey Buhay | Published on October 21, 2025

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People aren’t always open about their student loans,1 which can make it hard to know where you stand as a borrower. Are you borrowing too little? Too much? Should you try to use a cosigner—or try to avoid it? What’s everyone else doing? What’s normal?

We can’t tell you what you should or shouldn’t do, but we can give you a sense of how you compare to your peers. We’ve taken a close look at our internal data to reveal how today’s students (and parents) are funding higher education. Here’s a look at who’s borrowing student loans—and how much they cost.

Who borrows student loans in 2025?

Let’s start with federal loans. About 49% of undergraduate students take out federal loans to help cover costs at public colleges and universities. At private institutions, that number is even higher—about 52% of private-school students take out federal loans.

Private loan demographics are slightly different. Around 9% of undergrads take out private student loans for public university degrees, while about 13% of private-school students do. Historically, only about 5% of graduate students have needed to take out private student loans, though that number could increase now that new federal borrowing caps are in place.

How much students borrow: undergrads vs. grad students

Among Earnest borrowers, the average private loan size for a four-year bachelor’s degree in 2025 is $18,943. Students tend to supplement those private loans with savings, grants, scholarships, work-study, and federal student aid. Private loan amounts tend to be much higher for grad students. For one thing, graduate school tends to be more expensive than undergrad programs. For another, there are fewer low-cost federal loans available to grad students. According to Earnest data, the average borrower pursuing a graduate degree in 2025 has an average private loan size of $36,687. Keep in mind that these are amounts for private student loans. Many borrowers also have federal student loan debt. According to research from the Education Data Initiative (EDI), the average student borrowed nearly $32,000 in 2024 to cover a four-year bachelor’s degree. Tack on a graduate degree, and you can easily add $50,000 or more to that sum. According to EDI, the average total federal student loan debt is currently around $38,000 per student.

How many students are using cosigners

Cosigners aren’t required for student loans of any kind. But they’re very common for private student loans. Cosigners are especially popular among undergraduates, who tend to have thinner credit files and don’t qualify for low interest rates on their own. Using a cosigner lets you piggyback off a parent or other trusted adult’s deeper credit history, potentially helping you unlock lower rates and better loan terms.

According to Earnest data, about 89% of undergraduates—and 44% of graduate students—use a cosigner on their private student loans. Cosigner usage is significantly lower for advanced degrees because grad students tend to be older. As such, they often have enough credit and employment history to qualify for low rates on their own.

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The impact your degree has on your loan size

Loan size varies by degree level and by institution type. The average student loan borrower typically takes out $28,631 in federal loans for a four-year program at a public, in-state institution but might take out closer to $42,095 for a similar program at a private school. Meanwhile, student debt for a master’s degree sits around $53,000—not including undergraduate loans.

That’s just an average; the type of master’s degree you get can have a huge impact on your actual debt. The average Master’s of Education graduate takes out about $38,000 in student loan debt, according to EDI data, while a Master’s of Arts degree can run you upwards of $61,000. Professional degrees cost even more, and debt for such programs typically tops six digits for law or medical programs. Some doctorate degrees can incur around $200,000 in loans, for example, though high starting salaries typically make up for the cost.

What this means for families

Student loan debt is extremely common. If your family can’t cover your education expenses out of pocket, student loans—along with financial aid—can be a great resource to get you the education you need.

That said, the numbers above can feel sobering for many families, and they’re worth paying attention to. Determine how much you need to borrow for the program of your choice. Then, do some math (or use a student loan calculator) to estimate your monthly payment after you graduate. If that number feels untenable, try to limit your student loan borrowing to an amount you can afford to pay back.

If you haven’t already filled out the Free Application for Federal Student Aid (FAFSA), do that as soon as possible. If you did fill out the FAFSA but feel you ought to get more financial aid than you were offered, write a letter appealing your award. Be sure to write about any recent updates in your family’s financial circumstances.

Tips based on the data

So, what does all this data mean for you? Here are a few quick takeaways.

• Max out your federal loan amounts first. These days, college is more expensive than ever, and student debt frequently runs into the tens of thousands of dollars. Keep that in mind before you start borrowing. Remember that federal student loans tend to offer more generous repayment plans and hardship programs—including deferment, forbearance, and student loan forgiveness. So, make sure you’ve taken out all the federal loans you qualify for before looking at private loans.

• Prepare for cosigner conversation before undergrad. Most undergraduate private loan borrowers use a cosigner. If private borrowing is in your funding plan, think about who you’d like to cosign your loans. Do some pre-conversation research and come up with a repayment plan and timeline you can both agree to.

• Expect to borrow more if you’re pursuing grad school. The average graduate student borrows nearly twice as much as the average undergrad. If you’re planning to pursue an advanced degree, factor those costs into your financial strategy.

• Consider your degree type. Some degrees—like Master’s of Art degrees—can certainly be worthwhile but don’t offer the same job security as other, higher-paying master’s programs. If money is tight for you or your family, think carefully about the type of degree you’re pursuing and how long it might take you to pay it off.

• Choose an affordable institution. When possible, consider attending a public, in-state school over a private institution. This choice alone could save you thousands of dollars. Another great option is to attend community college for your first year or two of undergrad. After you’ve knocked out your prerequisites at a lower cost, transfer to a state school for more specialized courses.

Where to start your private student loan search

If you’ve hit your federal borrowing limits and are still short on funding, private loans can help. Specialty lenders like Earnest can bridge the gaps, helping you raise enough to cover the full cost of college. That way, you can focus on your studies—not on trying to make ends meet.

With Earnest, you can customize your loan amount and choose a repayment schedule that fits your lifestyle. We offer both graduate and undergraduate loans, both with and without a cosigner. We also strive to make the lending process as simple and transparent as possible, and our best-in-class customer service is there to help you navigate every step. Learn more about what borrowers like you choose: Check your rate with Earnest today.

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About the Author

Corey Buhay

Corey Buhay is a writer and editor based in Boulder, Colorado. She’s passionate about literature, the outdoors, and doing her taxes by hand. She has been writing about student loans and personal finance for Earnest since 2019. You’ll find her work in Outside Magazine, Backpacker Magazine, Smithsonian, and The Denver Post.

Disclaimer

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.