WalletHub Financial Writer Adam McCann recently released a study regarding the states that have the most and least student debt.
“Student debt is a huge problem in America,” McCann stated. “Save for mortgages, student loans make up the largest component of household debt for Americans. Our collective debt keeps growing, too.”
At the end of the second quarter of this year, it was reported that the total outstanding college loan balances stood at nearly $1.62 trillion, which comes out to an average of nearly $38,000 for each of the 42.8 million borrowers. The states are not equal in regard to the burden of student loan debt.
With this in mind, WalletHub compared the states based on 12 key measures of indebtedness, as well as in earning opportunities. Through this study, it was discovered that Utah is the state with the least student debt, followed by Hawaii, Washington and California.
On the other hand, the states with the most student debt were Mississippi, Pennsylvania and Delaware.
“College keeps getting progressively more expensive, and so does borrowing money to attend. Federal student loan interest rates are rising to a 12-year high for the upcoming academic year, so it’s important to plan carefully when borrowing,” stated Cassandra Happe, WalletHub Analyst.
Utah was ranked the lowest in regard to average student debt, coming in at a two-time difference with the state with the worst average student debt, New Hampshire. Similarly, Utah had a two-time difference in regard to being the state with the lowest proportion of students with debt against South Dakota, who had the highest.
Finally, Utah ranked number four in student debt as a percentage of income, adjusted for cost of living.