Student loan debt nationwide increased by 8.28% in 2020, the largest increase since 2013, according to the latest report from EducationData.org. That spike was most likely fueled by rising unemployment and 3.2 million new federal student loan borrowers.
Student loan debt is now the second-highest consumer debt category in the country behind only
housing debt. Nationwide, nearly 40% of college attendees report some type of educational debt, and 65% graduate with student debt, the report showed.
A recent report from EducationData.org details the average student loan debt per borrower (based on all student loan debt, not just that owed by undergraduate borrowers) in each state. Overall, residents of Washington, D.C., have the nation’s highest federal student loan debt at more than $55,000 per borrower when looking at the total student loan debt owed by individuals in the state. Of every state, North Dakota has the lowest average federal student loan debt, with residents there owing an average of just $29,446.
Related: Can student loans be discharged?
Student Loan Debt in Each State
Read on for an overview of what student loan debt looks like across the country according to EducationData.org. This data is reflective of all borrowers, not just undergraduate students.
Alabama
Average borrower debt: $37,348
Total student loan debt: $23.1 Billion
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Alaska
Average borrower debt: $34,431
Total student loan debt: $2.3 Billion
Everything you need to know about student loans & scholarships in Alaska
Arizona
Average borrower debt: $35,454
Total student loan debt: $30.7 Billion
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Arkansas
Average borrower debt: $33,525
Total student loan debt: $12.8 Billion
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California
Average borrower debt: $36,937
Total student loan debt: $142.7 Billion
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Colorado
Average borrower debt: $37,120
Total student loan debt: $28.2 Billion
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Connecticut
Average borrower debt: $35,448
Total student loan debt: $17.1 Billion
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Delaware
Average borrower debt: $37,338
Total student loan debt: $4.6 Billion
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District of Columbia
Average borrower debt: $55,077
Total student loan debt: $6.4 Billion
Florida
Average borrower debt: $38,481
Total student loan debt: $98.2 Billion
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Georgia
Average borrower debt: $41,843
Total student loan debt: $67.2 Billion
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Hawaii
Average borrower debt: $36,575
Total student loan debt: $4.4 Billion
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Idaho
Average borrower debt: $33,100
Total student loan debt: $7.1 Billion
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Illinois
Average borrower debt: $38,071
Total student loan debt: $61.1 Billion
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Indiana
Average borrower debt: $33,106
Total student loan debt: $29.6 Billion
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Iowa
Average borrower debt: $30,848
Total student loan debt: $13.2 Billion
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Kansas
Average borrower debt: $33,130
Total student loan debt: $12.5 Billion
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Kentucky
Average borrower debt: $33,023
Total student loan debt: $19.5 Billion
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Louisiana
Average borrower debt: $34,683
Total student loan debt: $22.1 Billion
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Maine
Average borrower debt: $33,352
Total student loan debt: $6.1 Billion
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Maryland
Average borrower debt: $43,219
Total student loan debt: $35.5 Billion
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Massachusetts
Average borrower debt: $34,549
Total student loan debt: $30.4 Billion
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Michigan
Average borrower debt: $36,295
Total student loan debt: $50.7 Billion
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Minnesota
Average borrower debt: $33,822
Total student loan debt: $26.3 Billion
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Mississippi
Average borrower debt: $37,080
Total student loan debt: $16.0 Billion
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Missouri
Average borrower debt: $35,706
Total student loan debt: $29.3 Billion
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Montana
Average borrower debt: $33,953
Total student loan debt: $4.2 Billion
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Nebraska
Average borrower debt: $32,138
Total student loan debt: $7.8 Billion
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Nevada
Average borrower debt: $33,863
Total student loan debt: $26.3 Billion
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New Hampshire
Average borrower debt: $34,353
Total student loan debt: $6.4 Billion
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New Jersey
Average borrower debt: $35,730
Total student loan debt: $41.7 Billion
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New Mexico
Average borrower debt: $34,237
Total student loan debt: $7.7 Billion
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New York
Average borrower debt: $38,107
Total student loan debt: $91.9 Billion
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North Carolina
Average borrower debt: $37,861
Total student loan debt: $48.0 Billion
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North Dakota
Average borrower debt: $29,446
Total student loan debt: $2.5 Billion
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Ohio
Average borrower debt: $34,923
Total student loan debt: $61.8 Billion
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Oklahoma
Average borrower debt: $31,832
Total student loan debt: $15.2 Billion
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Oregon
Average borrower debt: $37,251
Total student loan debt: $20.0 Billion
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Pennsylvania
Average borrower debt: $35,804
Total student loan debt: $63.9 Billion
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Rhode Island
Average borrower debt: $32,212
Total student loan debt: $4.5 Billion
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South Carolina
Average borrower debt: $38,662
Total student loan debt: $27.5 Billion
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South Dakota
Average borrower debt: $31,858
Total student loan debt: $3.6 Billion
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Tennessee
Average borrower debt: $36,549
Total student loan debt: $30.8 Billion
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Texas
Average borrower debt: $33,123
Total student loan debt: $116.8 Billion
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Utah
Average borrower debt: $32,781
Total student loan debt: $9.9 Billion
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Vermont
Average borrower debt: $38,411
Total student loan debt: $2.9 Billion
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Virginia
Average borrower debt: $39,472
Total student loan debt: $41.9 Billion
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Washington
Average borrower debt: $35,521
Total student loan debt: $27.6 Billion
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West Virginia
Average borrower debt: $32,258
Total student loan debt: $7.2 Billion
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Wisconsin
Average borrower debt: $32,272
Total student loan debt: $23.1 Billion
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Wyoming
Average borrower debt: $30,246
Total student loan debt: $1.6 Billion
Everything you need to know about student loans & scholarships in Wyoming
The Takeaway
The average amount of debt held by borrowers varies from state to state. The five states with the highest average amount of student loan debt per borrower are Washington D.C., Maryland, Georgia, Virginia and South Carolina. The five states with the lowest average of student loans per borrower are South Dakota, Oklahoma, Iowa, Wyoming and North Dakota. North Dakota is the only state where the average borrower owes less than $30,000.
For millions, student loans are a necessary part of paying for college. When federal aid and savings aren’t enough to pay for school, some borrowers turn to private student loans. While private lenders are not required to offer the same benefits or protections as federal student loans, they can be helpful for borrowers who have exhausted all other options and are looking to fill in gaps in funding.
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Private student loan relief options
Private student loans can help fill the gap needed for students to pay for their tuition and living expenses, but they do not have the same relief programs that federal student loans provide.
Federal student loans offer more borrower protections after students graduate, especially if they face difficult economic circumstances such as the loss of a job, being furloughed from a position or if their salary is inadequate to pay all their bills.
When borrowers take out a federal student loan, they have a few different options to choose from such as forgiveness or deferment programs until their financial circumstances change.
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The options for private student loan relief are fewer. Private student loan forgiveness does not exist and no lenders offer this option.
When graduates face hurdles in repaying their private student loans, some lenders provide their own temporary assistance programs. These programs may provide temporary assistance to borrowers and the programs will vary based on the lender.
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Read the fine print on temporary relief programs offered by private lenders. Generally, interest will continue to accrue while the loan is in forbearance, which can make the loan more expensive in the long-term.
However, if you’re struggling to make repayments, securing forbearance could help provide breathing room to help you get back on track without missing payments.
If you are not sure whether or not the lender offers forbearance or other temporary assistance programs, try to contact them before missing any payments. They may have an option that could help or be willing to work with borrowers who are struggling.
Missing payments can potentially impact a borrower’s credit score. And if the borrower has a co-signer, their credit score may feel an impact as well.
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The federal government has extended some relief options to borrowers with federal student loans due to the COVID-19 pandemic. Most of these policies do not apply to borrowers with private student loans.
As of March 2021, some borrowers with private student loans in default qualify to have their student loan payments paused. Borrowers with a defaulted loan made through the Federal Family Education Loan (FFEL) Program, may qualify for the federal protections offered. The FFEL program loans were made by private companies but were backed by the federal government. The program ended in 2010.
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Since there aren’t any real loan forgiveness options available for borrowers with private student loans, repaying them may become a financial priority. The repayment period for private student loans may vary based on lenders, so review the terms and payment schedule with your lender.
Some private student loans may have a grace period—a period of time after a student graduates where payments are not due. This will depend on the lender, so review your loan terms to find out if your private loan is eligible for a grace period. Interest may accrue during the grace period.
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Other strategies to that can help students as they repay their student loans include:
- Budgeting with Purpose. Factor student loan payments into your budget and prioritize repayments.
- Enrolling in automatic payments. This can help you avoid missing payments. Some lenders may even offer a rate discount to borrowers who do enroll, so it’s worth asking.
- Funneling additional income to student loans. Influx in cash thanks to a recent birthday, tax refund, bonus at work? Make an overpayment to the student loan.
- Consider refinancing. Student loan refinancing can help qualifying borrowers secure a more competitive interest rate or preferable terms. Lowering the interest rate on a student loan could help borrowers save money over the life of the loan.
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Refinancing could result in a lower interest rate which could also lower the minimum monthly payment. In some cases, getting a lower monthly payment requires extending the life of the loan, which can ultimately cost more.
Student loan refinancing means a new loan is obtained at a new interest rate and possibly a new term or the number of years you have to pay off the loan.
Borrowers can generally choose between fixed or variable interest rates, depending on the options available at the lender they have decided to borrow from.
Private lenders will generally rely on information like a borrower’s credit score and employment history to determine how much money a person can borrow, and at what interest rate.
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Borrowers who are able to secure a lower interest rate may find that refinancing can help them spend less over the life of the loan. Additionally, a borrower with multiple private student loans might appreciate the opportunity to streamline their monthly payments to a single sum with a single lender.
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Some borrowers may be able to get some private student loan assistance, depending on the programs offered and policies in place with their private lender. In some cases, refinancing may make sense for borrowers who can qualify for a lower interest rate.
Learn More:
This article
originally appeared on SoFi.comand was
syndicated by MediaFeed.org.
SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 Opens A New Window.. For additional product-specific legal and licensing information, see SoFi.com/legal.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s
website .
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF SEPTEMBER DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. CLICK HERE FOR MORE INFORMATION.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
IF YOU ARE LOOKING TO REFINANCE FEDERAL STUDENT LOANS PLEASE BE AWARE OF RECENT LEGISLATIVE CHANGES THAT HAVE SUSPENDED ALL FEDERAL STUDENT LOAN PAYMENTS AND WAIVED INTEREST CHARGES ON FEDERALLY HELD LOANS UNTIL THE END OF SEPTEMBER DUE TO COVID-19. PLEASE CAREFULLY CONSIDER THESE CHANGES BEFORE REFINANCING FEDERALLY HELD LOANS WITH SOFI, SINCE IN DOING SO YOU WILL NO LONGER QUALIFY FOR THE FEDERAL LOAN PAYMENT SUSPENSION, INTEREST WAIVER, OR ANY OTHER CURRENT OR FUTURE BENEFITS APPLICABLE TO FEDERAL LOANS. CLICK HERE FOR MORE INFORMATION.
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