A new study reveals the top 10 states with the most and least student loan debt in America and California is among the list.

California High on List

The research, conducted by CreditDonkey, compared all 50 states based on the most recent student debt data from the Federal Reserve Bank of New York to discover which states had the highest proportion of student debt per borrower.

The research showed  California has the ninth largest student loan debt in America. In California, there are a total of 4,021,200 student loan borrowers, with an average loan debt of $37,783 per borrower.

Other States

Maryland took the top spot, with a higher prevalence of student loan debt than any other state. With 864,700 student loan borrowers in the state, Maryland’s total federal student loan debt balance is $36,787 billion. This equates to an average loan debt of $42,543 per borrower.

The research revealed that Georgia placed next in the ranking, with the second-largest amount of student debt in the country. In the Southeastern state, there are a total of 1,641,600 student loan borrowers, with an average loan debt of $41,826 per borrower.

Delaware ranks third, with residents having the third largest average federal student loan debt compared to borrowers in other states. When broken down, there are a total of 137,300 student loan borrowers in Delaware, with an average of $39,238 debt per borrower.

Virginia ranks as the fourth state with the largest amount of student debt, with an average of $39,001 per borrower, while New York follows in fifth place with $38,668.

 

The top 10 states with the largest amount of student debt:

Rank

State

Total borrowers in the state

Average loan debt per borrower

1

Maryland

864,700

$42,543

2

Georgia

1,641,600

$41,826

3

Delaware

137,300

$39,238

4

Virginia

1,143,200

$39,001

5

New York

2,579,600

$38,668

6

Florida

2,646,400

$38,653

7

Oregon

556,000

$38,248

8

Illinois

1,713,900

$37,869

9

California

4,021,200

$37,783

10

Alabama

615,800

$37,730

 

Lowest States with Student Debt

At the other end of the scale, South Dakota has the lowest average loan debt per borrower. Approximately 12.9% of all South Dakota’s residents hold federal student loan debt, which equates to an average of $28,218 debt per student loan borrower.

The study revealed that Iowa has the second lowest proportion of student loans per borrower. The state has a total number of 465,500 student loan borrowers, with an average of $29,845 of debt per borrower. Iowa has several student loan forgiveness programs, including specific programs for doctors, nurses, teachers, and other health care providers.

Alaska places next in the ranking, with residents having the third lowest average student loan debt when compared to borrowers in other states. When broken down, the average loan debt per borrower in Alaska is $30,427 and there is a total of 70,600 student loan borrowers in the state.

North Dakota ranks as the fourth state with the lowest amount of student debt, with an average of $30,542 per borrower, while Wyoming follows closely behind in fifth place, with $30,581. The top ten is rounded out by Wisconsin ranking sixth, Nebraska in seventh, followed by Arkansas, Indiana, and Oklahoma in eighth, ninth, and, tenth, respectively.

A spokesperson for CreditDonkey said, “It’s no secret that the cost of a college education has soared over recent decades, with the average price of tuition, fees, and room and board increasing by 169% for an undergraduate degree between 1980 and 2020.”

“These findings provide an intriguing insight into where student loan debt is most prominent throughout the country, and where the country could benefit the most from President Biden’s proposed student loan forgiveness plan. At an estimated cost of about $400 billion, Biden’s plan to forgive student debt is one of the most expensive executive actions in history. The Supreme Court is expected to issue a decision before the end of June, providing much-anticipated clarity for millions of eager student loan borrowers.”

 

The top 10 states with the lowest amount of student debt:

Rank

State

Total borrowers in the state

Average loan debt per borrower

1

South Dakota

135,600

$28,218

2

Iowa

465,500

$29,845

3

Alaska

70,600

$30,427

4

North Dakota

114,000

$30,542

5

Wyoming

57,600

$30,581

6

Wisconsin

785,600

$31,482

7

Nebraska

261,000

$31,551

8

Arkansas

374,900

$31,851

9

Indiana

924,000

$32,045

10

Oklahoma

480,800

$32,102

 

See more info here

Sources: Federal Reserve Bank of New York, CreditDonkey