Average student debt refers to the typical amount of money borrowed by students to pay for college or university. It is calculated by dividing the total amount of student debt in a given population by the number of borrowers. Average student debt can vary significantly depending on factors such as the cost of tuition, the availability of financial aid, and the earning potential of graduates.
Understanding average student debt is important for several reasons. First, it can help students and their families make informed decisions about how to finance their education. Second, it can help policymakers develop policies to make college more affordable and accessible. Third, it can help researchers track trends in student debt and its impact on the economy.