Average Student Loan Debt by State
Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
Most Americans have had a reprieve from needing to make student loan payments during the coronavirus pandemic; however, that relief will soon expire in a few months. There are over 43 million student loan borrowers in the United States, carrying more than $1.6 trillion in loans from various lenders. Estimates put about 1 in 5 Americans in forbearance for those student loans, too, and a large portion of student loan borrowers recently surveyed shared that they’re not ready for student loan payments to resume on October 1st, as scheduled.
Many current college students have seen how student loans have impacted older generations, so for Americans who are 24 or younger, student loan debt is less than $15,000 on average. However, as you look at older age groups, the average student loan debt continues to increase, with borrowers aged 25 to 34 and 35 to 49 owing about $33,000 and $42,000 on average, respectively.
While age is one way to analyze higher education costs—and the debt Americans have incurred to pay for that education—it certainly isn’t the only way to look at the issue. In fact, comparing average student loan debt by state can also provide some interesting insight, since it allows you to evaluate yourself compared to other residents in your geographic area.
Whether you have private student loans or federal student loan debt, here’s a quick overview of how student loan debt stacks up from one state to the next—including which state has the highest average student loan debt.
In this article
Average student loan debt by state
How does your state stack up to its neighbors when it comes to student loan debt? Do you owe more or less than other people living in your state? This chart compares you to other student loan borrowers in your region and the rest of the United States.
State | Average Borrower Debt |
District of Columbia | $ 54,945 |
Maryland | $ 42,861 |
Georgia | $ 41,639 |
Virginia | $ 39,165 |
Florida | $ 38,459 |
South Carolina | $ 38,414 |
Illinois | $ 37,757 |
North Carolina | $ 37,721 |
New York | $ 37,678 |
Delaware | $ 37,559 |
Vermont | $ 37,516 |
Alabama | $ 37,137 |
California | $ 37,084 |
Oregon | $ 37,017 |
Mississippi | $ 36,902 |
Colorado | $ 36,822 |
Hawaii | $ 36,765 |
Tennessee | $ 36,418 |
Michigan | $ 36,116 |
Washington | $ 35,510 |
New Jersey | $ 35,434 |
Missouri | $ 35,397 |
Arizona | $ 35,396 |
Pennsylvania | $ 35,385 |
Connecticut | $ 35,162 |
Ohio | $ 34,721 |
Louisiana | $ 34,525 |
New Mexico | $ 34,211 |
Massachusetts | $ 34,146 |
New Hampshire | $ 34,085 |
Alaska | $ 34,024 |
Nevada | $ 33,743 |
Minnesota | $ 33,604 |
Arkansas | $ 33,333 |
Montana | $ 33,149 |
Maine | $ 33,137 |
Idaho | $ 33,012 |
Texas | $ 32,920 |
Indiana | $ 32,874 |
Utah | $ 32,835 |
Kentucky | $ 32,779 |
Kansas | $ 32,578 |
Rhode Island | $ 32,056 |
Nebraska | $ 31,919 |
Wisconsin | $ 31,894 |
West Virginia | $ 31,690 |
Oklahoma | $ 31,525 |
Wyoming | $ 31,250 |
South Dakota | $ 30,954 |
Iowa | $ 30,464 |
North Dakota | $ 28,604 |
Puerto Rico | $ 28,242 |
Other/Unspecified* | $ 25,960 |
As you can see, the picture isn’t pretty no matter where you live, with most borrowers in America carrying more than $30,000 in student loan debt. The states with the highest average student loan debt in 2022 were Columbia, Maryland and Georgia, followed by Florida and Virginia. On the other end of the spectrum, borrowers living in North Dakota and Puerto Rico owed the least in student loan debt—although they still owed, on average, about $28,000.
All of these facts point to the fact that student loan debt is something that a wide number of Americans have to contend with, regardless of whether they live in the Midwest, west, east, northeast, or South. Indeed, four states with the highest average student loan debt by borrowers in 2022 are in disparate parts of the country, illustrating that it isn’t just one region that is dealing with a large amount of student loan balances.
5.54% - 15.86% VARIABLE rate APRs 3.54% - 14.83% FIXED rate APRs
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees
- Flexible repayment options to help you find the right loan for you
- Student loans for college, graduate, law, MBA, Health Professionals, and Parent loans
- Students are 5x more likely to be approved with a cosigner
- 0.25% discount when you set up autopay
Different kinds of student loans
Many times, all student loans get lumped into one topic, which is understandable given the complexity of some student loan products. That being said, about six different kinds of student loans are regularly offered to students. Some loans are only offered by the federal government, while others are lent to borrowers by private companies. Some student loans are only available for undergraduate students, and some are only available to graduate students, or students signing up for the loan with their parents. Here’s a quick rundown of each loan.
Direct subsidized federal loan
This type of federal student loan is sometimes called a Stafford loan. This student loan is given directly to the student to use towards education costs after that student has demonstrated financial need. In a subsidized loan, the government helps cover the interest that accrues while you enroll in school. If you have an interest rate of 5% on your loan of $6,000 for one school year, you wouldn’t need to worry about paying back the $300 of interest that would technically accrue while you’re enrolled in classes at least half-time. This type of loan is only available for undergraduate students.
Direct unsubsidized federal loan
Unlike subsidized federal student loans, a direct unsubsidized federal loan is available to undergraduate and graduate students. That being said, you’ll be responsible for the interest generated while you’re in school, which means that it can be a more expensive option than a subsidized loan. You’re also responsible for any interest generated while you’re in forbearance or a grace period—and your interest can capitalize (be added to the principal) if you miss a payment. These disadvantages mean that it’s important to fully understand the ins and outs of unsubsidized loans if you plan on using them to fund your schooling.
Direct Grad PLUS loan
A PLUS loan for graduate students involves a credit check to qualify for the loan product. With a direct Grad PLUS loan, you’ll also get a six-month grace period after you leave school to begin making payments on your loan. If you have good credit, it’s not a bad idea to look into PLUS loans to see what you might be able to qualify for.
Direct Parent PLUS loan
With a direct parent PLUS loan, parents can take out student loans for their children. This applies to adoptive and stepparents and biological parents and is a loan that requires payments to be made while the child is enrolled in school. A parent PLUS loan is solely the parent’s responsibility, and can’t be transferred to the student.
Direct consolidation loan
If you’ve dropped out of college or are looking for a way to combine many different loans into one loan with a lower interest rate, a direct consolidation loan isn’t a bad idea to look into. If a single monthly payment would benefit you, for example, a direct consolidation loan may be worthwhile. In some situations, consolidation or refinancing may qualify you for income-based repayment programs. That being said, consolidation could jeopardize your progress if you’ve been working towards a public service loan forgiveness program.
In-school private loan
There are dozens of companies providing private student loans, meaning that if you’re interested in shopping around and comparing products, you can likely find a private loan that works for you. One of the largest private loan companies, Sallie Mae, offers more than ten different student loan options, providing a wide range of financing opportunities for borrowers of all stripes. When looking at in-school private loans, make sure that you’re paying close attention to repayment terms and interest rates. Some lenders may offer deferment or interest-only payments while you’re in school, while others promise low-cost monthly payments as low as $25.
Forbearance vs. deferment
If you’re one of the 20% of Americans struggling to make your student loan payments, it can feel like there aren’t any options for you. However, you have two choices beyond the relief provided by the president due to the coronavirus pandemic. Deferment and forbearance are both options to weigh, although each has pros and cons. Learn more about both below.
Deferment
Deferment is generally your first defense if you’re struggling with student debt. If your financial situation qualifies you for deferment, you can defer payments on your loan in increments of six months for up to three years. Generally speaking, the financial situations that qualify you to defer your student loans include things like studying half-time or full-time in another collegiate program, being unemployed, serving in the military, or facing another form of economic hardship. When you defer, you should do so to improve your financial situation.
Forbearance
If you cannot receive a deferment on your loans, then forbearance is the next option to weigh. When you’re in forbearance for your student loans, you may be able to either lower the total monthly payment you make towards your loan or pause payments for up to a year.
There are two types of forbearance that you might qualify for. The first type, mandatory forbearance, is required of lenders if your financial situation meets certain criteria. For example, if you’re called into active military duty or your monthly payment exceeds 20% of your gross monthly income, your lender must provide mandatory forbearance. However, if you don’t meet these criteria, you’ll be required to speak with your lender directly about forbearance and may have fewer options.
5.54% - 15.86% VARIABLE rate APRs 3.54% - 14.83% FIXED rate APRs
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees
- Flexible repayment options to help you find the right loan for you
- Student loans for college, graduate, law, MBA, Health Professionals, and Parent loans
- Students are 5x more likely to be approved with a cosigner
- 0.25% discount when you set up autopay
Ways to lower student loans
Just because you have a certain student loan amount doesn’t mean you can’t lower your payments or interest rate. There are a few different strategies to consider when lowering the cost of your student loans. Here are some of the most popular.
Income-driven repayment plan
Enrolling in an income-driven repayment plan can be a great way to keep your monthly student loan payment manageable as you work towards repaying your loans. Generally speaking, if you’re enrolled in an IDR program, your monthly payment will increase or decrease based on how your income grows or shrinks year-over-year. This means that you may pay more in interest over time, but after a set number of years, your loan will be considered paid off as long as you’ve continued to make your monthly payments. Depending on your situation, your monthly payment may be as low as $0 but could increase as you get raises or switch jobs.
Graduated repayment plan
Some people may not qualify for income-driven repayment plans if they make too much money. A graduated repayment plan may be worth exploring in these situations. With a graduated repayment plan, your monthly payment will start smaller and increase every two years. Your loan will be considered paid off after ten years in a graduated repayment plan.
Extended repayment plan
Another option to consider if you have a federal student loan balance greater than $30,000 is an extended repayment plan. With an extended repayment plan, your loan terms will increase to either 20 or 25 years, resulting in you paying a lower monthly payment on average. That being said, extending your loan will also mean you pay more in interest over the lifetime of the loan, so it’s important to weigh the short-term and long-term benefits of this sort of repayment plan before enrolling.
Debt consolidation
Debt consolidation is another option if you’re looking to refinance your loan and get a better interest rate. Especially if you’ve improved your credit since taking out your loan, debt consolidation could mean you lower your overall costs. Additionally, getting one single payment rather than juggling multiple lenders could be a welcome relief. If you’re considering debt consolidation, pay close attention to any terms surrounding prepayment.
Pick up a side gig
While not everyone can do this, starting a side hustle or working a part-time job could be the secret to lowering overall student loan costs. Even bringing in an extra $50 or $100 a month can help your overall costs when you apply that extra money toward your student loan principal each time your payment comes due. Delivery drivers for apps like DoorDash and Grubhub, not to mention restaurants, can make up to $500 a week driving part-time in some cities thanks to tips, which can make a big dent in your debt.
If you’re open to the idea of working extra hours and putting in the legwork, this strategy can lead to great results, even if you can only commit to working this way for six months. Even if you’re only making an extra $100 a week as a delivery driver, being able to apply $400 to your student loan principal each month for a year means you’ll shave about $5,000 off of your principal.
The bottom line
Student loans are a complex topic that’s affecting a wide range of Americans. Whether you’re struggling to stay on top of federal student loans or a loan from a private lender, you’re not alone, as the chart above shows. The average student loan debt in America is more than $30,000 in most states, with several states cresting the $40,000 mark. As such, it’s no surprise that student debt forgiveness has the kind of support it does.
You must have a solid understanding of various loan products if you’re looking to enroll in school and ways to lower your student loan burden if you’re already struggling to repay your loan.
Student loans are a hot topic solely because of their weight on the more than 43 million Americans who carry this kind of educational debt. For many millennials, it may feel like student loans were sold to them as a necessary evil that wouldn’t have much bearing on their life, only to discover that student loans have been holding them back from property ownership and even having children. The best thing anyone can do in this situation is to arm yourself with information. It may seem difficult (especially if you’re a resident of Maryland, Georgia, Virginia, or Columbia), but it is possible to chart a path forward.
Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.
Images appearing across JoyWallet are courtesy of shutterstock.com.
Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
Share this article
