Student Loan Debt by State, Ranked
Introduction
Student loan debt is a major financial burden for millions of Americans, impacting decisions about careers, homeownership, and even family planning. However, student debt varies significantly by state, influenced by factors such as college tuition costs, state-level grant programs, and the types of institutions most attended. This guide ranks states by average student loan debt, providing insight into where students face the highest and lowest financial burdens.
National Overview of Student Loan Debt
As of recent years, the total U.S. student loan debt has surpassed $1.7 trillion, with an average balance of about $37,000 per borrower. While federal loans make up the bulk of student debt, many students rely on private loans to cover costs not included in federal funding. High debt levels can affect borrowers’ quality of life and financial stability, creating a nationwide push for solutions.
Top 10 States with the Highest Student Loan Debt
1. Maryland
- Average Student Loan Debt: $43,000
- Percentage of Graduates with Debt: 56%
- Contributing Factors: High average tuition rates, especially for out-of-state students at public universities and private institutions.
Maryland ranks as one of the states with the highest average debt due to high tuition costs, particularly in the Washington, D.C. metropolitan area, where living expenses also add to the financial burden.
2. Georgia
- Average Student Loan Debt: $42,400
- Percentage of Graduates with Debt: 60%
- Contributing Factors: Limited state financial aid and a high percentage of students attending private institutions.
Georgia’s limited state funding for public universities and grant programs means students are often left to cover a larger portion of tuition, increasing loan reliance.
3. Delaware
- Average Student Loan Debt: $41,200
- Percentage of Graduates with Debt: 58%
- Contributing Factors: High cost of attendance at Delaware’s limited number of universities and out-of-state costs.
With few universities to choose from, Delaware’s students often opt for out-of-state or private options, which lead to higher debt levels.
4. Pennsylvania
- Average Student Loan Debt: $40,700
- Percentage of Graduates with Debt: 63%
- Contributing Factors: High private school attendance and one of the nation’s highest in-state tuition costs.
Pennsylvania is home to numerous private institutions, and even public universities in the state have relatively high tuition, leading students to take on larger loans.
5. New Hampshire
- Average Student Loan Debt: $39,900
- Percentage of Graduates with Debt: 66%
- Contributing Factors: High tuition at state colleges, limited state grants.
New Hampshire consistently ranks high in terms of average debt, largely due to limited public funding and high costs at both public and private universities.
6. South Carolina
- Average Student Loan Debt: $39,700
- Percentage of Graduates with Debt: 62%
- Contributing Factors: Limited state grant programs and high out-of-state tuition rates.
South Carolina has seen rising education costs and a lack of extensive grant options, leading to higher borrowing rates among students.
7. Maine
- Average Student Loan Debt: $38,900
- Percentage of Graduates with Debt: 58%
- Contributing Factors: Limited state aid, high percentage of private institution attendance.
Maine has high tuition costs relative to the state’s median income, leaving many students reliant on loans.
8. Connecticut
- Average Student Loan Debt: $38,500
- Percentage of Graduates with Debt: 59%
- Contributing Factors: High living costs, particularly near urban areas, and reliance on private institutions.
Connecticut’s high cost of living and numerous private universities contribute to the state’s high average student debt.
9. Rhode Island
- Average Student Loan Debt: $38,200
- Percentage of Graduates with Debt: 60%
- Contributing Factors: High cost of attendance at private universities and limited public funding.
Many Rhode Island students attend expensive private institutions, contributing to higher debt levels upon graduation.
10. Alabama
- Average Student Loan Debt: $37,900
- Percentage of Graduates with Debt: 57%
- Contributing Factors: Limited state grants and high enrollment in out-of-state programs.
Alabama’s average student debt is driven by limited state-level support, pushing students to seek loans to cover costs.
Top 5 States with the Lowest Student Loan Debt
1. Utah
- Average Student Loan Debt: $18,400
- Percentage of Graduates with Debt: 36%
- Contributing Factors: Low public tuition costs, high number of scholarships.
Utah has consistently low student debt due to affordable tuition, significant state funding, and community support for education.
2. New Mexico
- Average Student Loan Debt: $20,000
- Percentage of Graduates with Debt: 37%
- Contributing Factors: Generous state scholarship programs and affordable in-state tuition.
New Mexico offers several state-based scholarships, which help students graduate with relatively low debt levels.
3. Wyoming
- Average Student Loan Debt: $21,500
- Percentage of Graduates with Debt: 39%
- Contributing Factors: Low tuition and strong state support for education.
Wyoming’s low tuition and effective state funding options help students avoid high debt.
4. California
- Average Student Loan Debt: $22,200
- Percentage of Graduates with Debt: 45%
- Contributing Factors: Robust state grant programs, particularly the Cal Grant.
California’s comprehensive grant programs make college affordable, especially for in-state students, contributing to a lower debt burden.
5. Nevada
- Average Student Loan Debt: $23,200
- Percentage of Graduates with Debt: 46%
- Contributing Factors: Affordable tuition for in-state students and state grant programs.
Nevada’s emphasis on accessible public university education helps keep student debt lower than the national average.
Factors Influencing Student Loan Debt by State
Understanding why some states have higher or lower debt averages involves examining several factors:
- Tuition Costs: States with high public or private tuition tend to have higher average debts.
- State Funding and Grants: States offering generous grant programs, like California, can help students graduate with less debt.
- Institution Type: Private college attendance correlates with higher debt, as these schools typically charge higher tuition.
- Cost of Living: In states with high living costs, students often borrow more to cover day-to-day expenses.
- Graduation Rates and Job Markets: States with strong job markets allow students to work part-time during school or pay down loans faster after graduation, impacting overall debt burden.
Conclusion
Student loan debt is a financial reality for many, but the burden varies widely from state to state. This ranking of student loan debt by state highlights how location, school type, and available grants impact average debt. By understanding these factors, students and families can make informed decisions about where and how to pursue higher education to minimize future debt.