Final answer:
On average, it takes about 20 years for an individual to pay back their student loan debt, with national student loan debt surpassing $1.6 trillion as of 2020. The average debt has grown significantly over the past decade, impacting graduates' economic choices and lifestyle.
Step-by-step explanation:
Studies are showing that it takes the average person approximately 20 years to pay back their student loan debt. Considering the scenarios where someone has taken a substantial loan, such as a $200,000 student loan with a 6.8% interest rate, this can result in substantial long-term costs. For example, if you borrowed $2,000 and made only minimum payments, it would take about 15 years to pay off, costing over $4,000 in interest—more than twice the initial amount. As of 2020, the overall national student loan debt exceeded $1.6 trillion.
The situation has become more challenging over time. The average student loan debt for graduates has increased from around $23,000 in 2009 to over $30,000 ten years later. This growth in debt can significantly influence life decisions, often causing graduates to delay major purchases and sometimes even requiring them to move back in with their parents to manage their loan payments.