Student Loan Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2026-2035)

Key Trends in the Market

Student loan refers to a lump sum of money that students receive from private companies, state government, or federal government, which is used towards school expenses, including accommodation and tuition fees, among others. These loans offer financial support to students who might otherwise not be able to afford expenses associated with a college education.

• The increased preference for studying abroad due to availability of better economic and social opportunities supports the student loan market growth. Higher tuition fees and visa expenses make the cost of pursuing a master’s degree in the US and Canada much higher. Student loans cover the high cost of tuition fees, stationery supplies, and living expenses of students. However, these loans carry a high interest rate since they are provided free of collateral and have a long repayment period.

• Banks are enhancing their loan sanctioning process by digitalising various inter-channel approvals, along with customers’ credit score. This is helping millions of students in getting their tuition fees financed quickly. It also enables them to track their instalment through mobile apps and make payments quickly. Such facilities and services are enhancing the consumer convenience, further supporting the student loan market development.

• The literacy rate across many developing countries is increasing because of intensive efforts and measures taken by national and international agencies. Such efforts are encouraging students to pursue further education for economic and social upliftment, bolstering the market demand.

• Students from India, China, and Brazil especially have a high demand for these loans, because of lack of provision of adequate financial aid in these countries. They also form a big portion of the international student community abroad and settle for employment opportunities in the host country after studying technical and managerial subjects.

Market Segmentation

Market Share by Age Group

As per the student loan market analysis, 24 year old or younger students are anticipated to account for a significant share of the market owing to the increasing preference for studying abroad among this age group. Graduating overseas can help students develop essential skills like communication, self-awareness, and self-confidence, earlier in life. Many organisations look for these skills in potential candidates. By graduating abroad, students can benefit from skill development programs, which enhances their personality and prepares them for leadership roles in the future. Studying overseas is an opportunity young people don’t want to miss, as it can open doors to new possibilities in life. This overshadows the high tuition fees and boarding cost, which is financed via student loans.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Market Share by Region

North America accounts for a significant student loan market share. This growth can be attributed to the presence of multiple high raking universities in the region and a strong student loan infrastructure. The availability of federal/government loans, which carry low interest rates, is further supporting the market expansion in North America. The long repayment schedule of these loans aids students in pursuing a stress-free education. The availability of counsellors and increasing government initiatives to boost awareness about the various advantages associated with availing student loans are providing lucrative growth opportunities to the market. The increasing cost of tuition fees across many universities in the region is further boosting the student loan market demand.

Competitive Landscape

Other key players in the student loan market include Nelnet, Inc., Discover Financial Services, LendKey Technologies, Inc., Avanse Financial Services Ltd., ICICI Bank Limited, Prodigy Finance Limited, Ascent Funding, LLC, Granite Edvance Corporation, and Social Finance, Inc., among others.