2017’s States with the Most and Least Student Debt
2:40 AMPosted by: Richie Bernardo
Location, location, location are the three most important words in real estate. But the mantra applies to education, too. Indeed, where you live doesn’t just affect the value of your property; it also reflects the worth of your college degree — the same degree that may have put you in debt. With 11 percent of all student-loan debts in delinquency or default as of Q1 2017, graduates need to be selective with the places in which they choose to put their degrees to work. New York City, for instance, might boast a high average salary for a certain profession, but the high cost of living can outweigh the gains, leaving little to pay off college debt.
Save for mortgages, student loans make up the largest component of household debt for Americans. And our collective debt keeps growing. At the end of the first quarter of 2017, total outstanding college-loan balances disclosed on credit reports stood at $1.34 trillion, according to the Federal Reserve Bank of New York. The latest figure represents an increase of $34 billion since the end of 2016.
Despite the evidence that income potential rises and chances of joblessness decline with more schooling, many graduates entering the labor market are learning the hard way that a college degree can’t guarantee financial security. Post-college success depends on numerous factors, including where a graduate lays down roots. Student-loan borrowers generally fare better in strong-economy states with low college-debt-to-income ratios.
With student-loan debtors in mind, WalletHub’s analysts compared the 50 states and the District of Columbia based on 10 key measures of indebtedness and earning opportunities. Our data set ranges from average student debt to unemployment rate among the population aged 25 to 34 to share of students with past-due loan balances. Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.
Tip: If you’re considering borrowing money for college or are in danger of defaulting, we advise leveraging a Student Loan Calculator to determine an affordable monthly payment and payoff timeline.
Main Findings Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/7520/student-debt-geochart.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2hndat1;
Overall Rank |
State |
Total Score |
‘Student-Loan Indebtedness’ Rank |
‘Grant & Work Opportunities for Students’ Rank |
---|---|---|---|---|
50 | West Virginia | 39.37 | 49 | 50 |
51 | District of Columbia | 36.73 | 51 | 6 |
Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/7520/student-debt-bubblechart.html" width="700" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:700px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2hndat1;
Incurring more student debt than one can handle can produce significant repercussions in the future. To advance the discussion, we asked a panel of experts to share their advice and insight with current and potential student-loan borrowers. Click on the experts’ profiles to read their bios and responses to the following key questions:
- What tips can you offer students looking to minimize the amount of debt they take out for higher education?
- Should the government reduce the amount of money students can borrow? How about basing the total amount a student can borrow on the quality of the university and employability of the degree/field?
- How do we slow the growth of higher-education expenses?
- How will the policy proposals of the Trump Administration impact student borrowing and higher-education finance more generally?
- How does the growth of student-loan debt affect the economy?
- How should students and their parents think about the return on investment to spending on higher education?
Tracy Boulukos Assistant Provost for Enrollment Management and Director of Student Financial Aid in the Division of Academic Affairs at Florida Atlantic University
Ron Day Director of Student Financial Aid at Kennesaw State University
Kris James Mitchener Robert and Susan Finocchio Professor of Economics at Santa Clara University
Korok Ray Associate Professor of Accounting in the Mays Business School at Texas A&M University
Josh Harris Lecturer and Academic Advisor in the Department of Finance at Clemson University College of Business
Jeffrey S. Podoshen Associate Professor of Marketing at Franklin & Marshall College
Gyan Pradhan Professor of Economics in the Department of Government and Economics at Eastern Kentucky University
David C. Bloomfield Professor of Education Leadership, Law and Policy at Brooklyn College and The City University of New York Graduate Center
Dan Davenport Director of Student Financial Aid Services at the University of Idaho


- Specific populations that are more prone to defaulting.
- Certain academic programs that may not enable students to find adequate employment following graduation. Although all programs should indeed be based on a “gainful employment” mentality, many students have difficulties with car payments, rent, basic living needs -- and student loan payments -- because the job market is not as financially lucrative as the student anticipated.
- Allowing the reduction based on academic progression. If a student remains a freshman for several years and continues to borrow because of remaining a freshman, the aggregate totals could be depleted very quickly (especially when approaching their senior year in college).
- Allow the reduction of student borrowing based on enrollment status. If a student is enrolled as a half-time student, they should only receive half of the loan available, not the full amount. The same should be true of students enrolled three-quarter-time.
- Schools must have students -- thus the cost of competing for these students has increased. This causes the need for building and maintaining newer and more refined facilities that can meet the needs of many programs, i.e., Information Technology, Architecture, Digital Animation, Information Security and Assurance, Computer Game Design, and many of the Engineering programs. These programs are highly specialized and require the latest facilities and amenities.
- Because schools must develop and ensure access, and success is foremost in their mission, attracting the best and brightest is indeed one of the more important aspects of diversity. This pool is small, and often requires resources to successfully matriculate these students. All schools wish to attract and enroll the high-achieving student -- yet, these students are recruited by many schools, thus it can become a challenge among schools to see who can provide resources needed to ensure enrollment.
- Student services have increased out of necessity.
- Because of the need for the latest and most up to date computer needs, schools must continually seek to improve and provide access to most modern technology around. Classrooms must be continually updated, because of the needs related to online programs computers must be the latest and most modern available, residence halls and other locations around all campuses must have the best and most stout internet connections, etc. It is a challenge to keep ahead of the latest versions of systems, hardware and software.
- Students are much more demanding regarding residence halls. The typical “cinder-block-walled dorm rooms” are ancient history -- not to mention community baths. Residence halls are much like high-cost apartment living on many campuses. These require updates and continual maintenance.
- Leadership development;
- Pride and spirit;
- Instilling the need for fitness;
- Assists with recruitment;
- Enables a more well-rounded atmosphere;
- Draws in the surrounding community to the college;
- Increasing alumni base -- thus returning revenue is increased.







In order to determine the best and worst states for student debt, WalletHub’s analysts compared the 50 states and the District of Columbia across two key dimensions, including “Student-Loan Indebtedness” and “Grant & Student Work Opportunities.”
We evaluated those dimensions using 10 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 being granted to the state with the most student debt.
Finally, we determined each state and the District’s weighted average across all metrics to calculate its total score and used the resulting scores to rank-order our sample.
Student-Loan Indebtedness - Total Points: 85- Average Student Debt: Double Weight (~14.17 Points)
- Proportion of Students with Debt: Full Weight (~14.17 Points)
- Student Debt as Share of Income: Double Weight (~28.33 Points)
- Share of Student Loans in Past-Due or Default Status: Full Weight (~14.17 Points)
- Share of Student-Loan Borrowers Aged 50 & Older: Full Weight (~14.17 Points)
- Unemployment Rate Among Population Aged 25 to 34: Full Weight (~3.75 Points)
- Underemployment Rate: Full Weight
- Availability of Student Jobs: Full Weight (~3.75 Points)
- Availability of Paid Internships: Full Weight (~3.75 Points)
- Grant Growth: Full Weight (~3.75 Points)
Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Institute for College Access & Success, Federal Reserve Bank of New York, Council for Community and Economic Research, U.S. Department of Education College Affordability & Transparency Center, Internships.com and Indeed.
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