Illustration by Unsplash+ in collaboration with Getty Images
The cost of college keeps increasing, and so does student debt. Americans’ total outstanding college-loan debt was almost $1.62 trillion at the end of the second quarter of 2024 — the second-largest component of household debt after mortgages.
Mississippi is the state with the most state debt, according to a report by WalletHub that compared the 50 states and the District of Columbia based on 12 measures of indebtedness and earning opportunities. Factors weighed included the average student loan balance, the unemployment rate for 25- to 34-year-olds and the share of students with past-due loan balances.
The five states with the most student debt are:
1. Mississippi. The average student loan debt equals about 58% of the state’s median income, the highest rate in the U.S. The state has the third-highest student loan default rate.
2. Pennsylvania. The state’s average student debt is over $39,000, the third highest. The average resident with student loan debt owes 46% of the median income in the state, the sixth-highest percentage. About 64% of students have student loan debt, the fourth-highest rate.
3. Delaware. Borrowers owe almost $40,000 on average, the second-highest amount. The average debt is 43% of the median income in the state, and about 60% of students have student loans.
4. West Virginia
5. South Carolina
The five states with the least student debt are:
47. New Mexico
48. California
49. Washington
50. Hawaii
51. Utah
“College keeps getting progressively more expensive, and so does borrowing money to attend,” says Cassandra Happe, a WalletHub analyst, in a news release. “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. In addition to attending college in a less expensive state and pursuing other avenues of funding like financial aid and grants, students should also carefully calculate how much they can afford to borrow before taking out a loan.”
