With student loan debt surpassing $1.6 trillion nationally, the personal-finance website WalletHub today released its report on the States with the Most and Least Student Debt in 2024 to see where borrowers are in the most financial trouble, or conversely where students manage their student loans better.
“College keeps getting progressively more expensive, and so does borrowing money to attend,” says WalletHub analyst Cassandra Happe. “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.”
WalletHub compared the 50 states and the District of Columbia across 12 key metrics. The data set ranges from the average student loan balance to the unemployment rate among 25- to 34-year-olds to the share of students with past-due loan balances. Utah’s overall rank is 51st, meaning students there have the least student loan debt.
Utah ranks according to the study:
• 51st – Avg. Student Debt
• 51st – Proportion of Students with Debt
• 48th – Student Debt as % of Income (Adjusted for Cost of Living)
• 39th – Unemployment Rate of Population Aged 25 to 34
• 16th – % of Student Loans Past Due or in Default
Julie Poorman, MPA, Director of Financial Aid at East Carolina University, says the single most important thing a student can do to limit debt is to limit their lifestyle.
“A wise woman I know urges students at orientation to live like a student while they are a student so that they may live like a professional when they achieve that status,” Poorman explains. “That means having a roommate, not living in the apartment complex with a party room and a pool, and not buying a car – use public transportation if it is offered in your community.
“Do not borrow to support a lifestyle; borrow only what you need to have a bed to sleep in and to put food on the table. Understand what is a ‘want’ versus what is a ‘need.’”
Student loan debit is relatively low throughout the Intermountain West, with Washington ranked 49th, New Mexico 47th, Wyoming 45th, Colorado 44th, Oregon 43rd, Nevada 42nd, Idaho 38th, Arizona 37th and Montana 31st.
If you’re considering going into debt for college or you’ve already taken out loans, the organization advises using a Student Loan Calculator to determine an affordable monthly payment and payoff timeline.
Data used to create the rankings were collected as of July 3, 2024 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, U.S. Department of Education – Federal Student Aid Office, Internships.com, LendEDU, The Pew Charitable Trusts, and Indeed.