Student Loans Market Market Size (2024 - 2029)

The education/student loans market is experiencing significant growth, driven by the increasing demand for higher education and the rising costs associated with it. This market plays a crucial role in providing financial support to students, enabling them to pursue their educational goals without immediate financial burden. The market's expansion is influenced by factors such as the need to bridge financial gaps, the challenges students face in affording tuition, and the favorable terms of student loans compared to other financial products. As educational expenses continue to rise globally, the market's capacity to support students in accessing quality education remains a vital component of their career advancement.

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Market Size of Student Loans Industry

Student Loans Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 9.20 %
Fastest Growing Market Europe
Largest Market North America
Market Concentration Low

Major Players

Student Loans Market Major Players

*Disclaimer: Major Players sorted in no particular order

Student Loans Market Analysis

  • The global education/student loans market is valued at USD 3,800 billion in the current year and is expected to register a CAGR of 9.2% during the forecast period.
  • A student loan is the amount of money that is obtained to cover the expenses related to higher education or postsecondary education. They cover the cost of tuition and other educational costs. When students are in college, payments are frequently postponed, and depending on the lender, they may occasionally be postponed for an additional six months after receiving a degree.
  • One of the advantages of the student loan is that it motivates educated but underprivileged people to continue their studies and find rewarding work, advancing their careers. These loans are designed so that the student does not have to repay the loan immediately but instead must do so once their education is complete by deducting payments from their income.
  • Education remains a vital investment for future opportunities, so the student loan market responds to the imperative of bridging financial gaps to access education and enhance career prospects. The student loan market is driven by various factors, such as the pursuit of higher education, rising tuition costs, and the financial challenges faced by students.
  • As living costs rise and colleges in various countries like Germany, Australia, and Canada raise their fees, students are forced to borrow more. The interest rate can be considerably lower than other loans, and the repayment plan can be postponed while the borrower is still enrolled in school, setting it apart from other loans.

Student Loans Industry Segmentation

A student loan is a specific type of loan made for students to assist them in covering the costs of their post-secondary education and any related expenses, including tuition, books, supplies, and living costs. Government agencies, private financial institutions, or educational institutions themselves typically provide these. These loans are designed to assist students who may need more immediate financial means to cover the full cost of their education.

The global education/student loans market is segmented by type (federal/government loan and private loan), by repayment plan (standard repayment plan, graduated repayment plan, revised pay as you earn (REPAYE), income-based, and other repayment plans), by age group (24 or younger, 25 to 34, and above 35), by end-user (graduate students, high school student, and other end-users), and by region (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa).

The report offers market size and forecasts in value (USD) for all the above segments.

By Type
Federal/Government Loan
Private Loan
By Repayment Plan
Standard Repayment Plan
Graduated Repayment Plan
Revised Pay As You Earn (REPAYE)
Income-based (IBR)
Other Repayment Plans
By Age Group
24 or Younger
25 to 34
Above 35
By End User
Graduate Students
High School Student
Other End-Users
By Region
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
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Student Loans Market Size Summary

The global education/student loans market is a crucial sector that facilitates access to higher education by providing financial support to students. This market is characterized by its ability to bridge the financial gaps that students face due to rising tuition costs and living expenses. Student loans are designed to be repaid after the completion of education, often with lower interest rates and deferred repayment plans, making them an attractive option for those pursuing further education. The market is driven by the increasing demand for higher education and the financial challenges that accompany it, with a significant portion of the population relying on these loans to fund their educational pursuits. The market is fragmented, with various lenders, including government agencies, banks, and private financial institutions, offering a diverse range of loan products to meet the needs of students worldwide.

The education/student loans market is also marked by the growing burden of student debt, which has become a significant consumer debt category, second only to mortgages. This debt is not limited to the young; it also affects older borrowers, including seniors who may have co-signed loans or taken out loans for themselves. The impact of student debt extends beyond financial strain, affecting life choices such as retirement savings and healthcare decisions. The market's dynamics are influenced by factors such as the cost of education in countries like Australia, where studying is particularly expensive for international students. Major players in the market, such as Earnest, Juno, Credible, Citizens Bank, and Discover, continue to innovate and expand their offerings to cater to the evolving needs of students, as evidenced by recent partnerships and marketing campaigns aimed at enhancing accessibility and affordability in higher education.

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Student Loans Market Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Government Initiatives are Driving the Market

      2. 1.2.2 Growing Aspirations for International Education is Driving the Market

    3. 1.3 Market Restraints

      1. 1.3.1 Creditworthiness Challenges are Restraining the Market

    4. 1.4 Market Opportunities

      1. 1.4.1 Online Education is Providing Opportunities for the Market

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights on Current Trends and Innovations in the Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Federal/Government Loan

      2. 2.1.2 Private Loan

    2. 2.2 By Repayment Plan

      1. 2.2.1 Standard Repayment Plan

      2. 2.2.2 Graduated Repayment Plan

      3. 2.2.3 Revised Pay As You Earn (REPAYE)

      4. 2.2.4 Income-based (IBR)

      5. 2.2.5 Other Repayment Plans

    3. 2.3 By Age Group

      1. 2.3.1 24 or Younger

      2. 2.3.2 25 to 34

      3. 2.3.3 Above 35

    4. 2.4 By End User

      1. 2.4.1 Graduate Students

      2. 2.4.2 High School Student

      3. 2.4.3 Other End-Users

    5. 2.5 By Region

      1. 2.5.1 North America

      2. 2.5.2 Europe

      3. 2.5.3 Asia-Pacific

      4. 2.5.4 Latin America

      5. 2.5.5 Middle East and Africa

Student Loans Market Market Size FAQs

The Student Loans Market is projected to register a CAGR of 9.20% during the forecast period (2024-2029)

Earnest, Juno, Credible, Citizens Bank and Discover are the major companies operating in the Student Loans Market .

Student Loans Market Report Snapshots

Education/Student Loans Market - Growth, Trends, COVID-19 Impact, and Forecasts (2024 - 2029)