States With the Highest Student Loan Debt

Many Americans believe that higher education is the key to a positive economic future. However, the United States has some of the most expensive costs for college and universities in the world. To bridge this gap, many Americans take advantage of student loans that are offered or guaranteed by the federal government. While these loans are an important way for students to finance their education, they can be an ongoing burden for graduates after they have completed their studies.

In this study, AdvisorSmith examines the states with the highest levels of student loan debt. In particular, we took a deeper look into which states had the highest average student loan balances. Additionally, we also examined the states where the highest percentage of the population currently carries a federal student loan.

At the end of June 2021, the average student loan debt held in the federal student loan portfolio was $37,105. There were a total of 42.9 million borrowers, which is approximately 13% of the total U.S. population.

States With the Highest Student Loan Balances

Below, we rank the states with the highest average student loan balances. The nation’s capital, Washington, D.C., had the highest average balance of $55,077, while North Dakota had the lowest average balance at $29,446.

Rank	State	Average Loan Balance
1	District of Columbia	$55,077
2	Maryland	$43,219
3	Georgia	$41,843
4	Virginia	$39,472
5	South Carolina	$38,662
6	Florida	$38,481
7	Vermont	$38,411
8	New York	$38,107
9	Illinois	$38,071
10	North Carolina	$37,861
11	Alabama	$37,348
12	Delaware	$37,338
13	Oregon	$37,251
14	Colorado	$37,120
15	Mississippi	$37,080
16	California	$36,937
17	Hawaii	$36,575
18	Tennessee	$36,549
19	Michigan	$36,295
20	Pennsylvania	$35,804
21	New Jersey	$35,730
22	Missouri	$35,706
23	Washington	$35,521
24	Arizona	$35,454
25	Connecticut	$35,448
26	Ohio	$34,923
27	Louisiana	$34,683
28	Massachusetts	$34,549
29	Alaska	$34,431
30	New Hampshire	$34,353
31	New Mexico	$34,237
32	Montana	$33,953
33	Nevada	$33,863
34	Minnesota	$33,822
35	Arkansas	$33,525
36	Maine	$33,352
37	Kansas	$33,130
38	Texas	$33,123
39	Indiana	$33,106
40	Idaho	$33,100
41	Kentucky	$33,023
42	Utah	$32,781
43	Wisconsin	$32,272
44	West Virginia	$32,258
45	Rhode Island	$32,212
46	Nebraska	$32,138
47	South Dakota	$31,858
48	Oklahoma	$31,832
49	Iowa	$30,848
50	Wyoming	$30,246
51	North Dakota	$29,446

States With the Most Student Loans Outstanding

In this analysis, we found the states where the largest percentage of the population has an outstanding federal student loan. Again, Washington, D.C. led the way, with 16% of the population there having an outstanding federal student loan. Hawaii had the fewest number of residents with federal student loans outstanding, with only 9% of the population having a student loan.

Rank	State	Percent of Population with Student Loans
1	District of Columbia	16%
2	Ohio	15%
3	Georgia	15%
4	Mississippi	15%
5	Michigan	14%
6	Pennsylvania	14%
7	Minnesota	14%
8	Louisiana	14%
9	New Hampshire	14%
10	South Carolina	14%
11	Maryland	14%
12	Connecticut	14%
13	Maine	14%
14	Iowa	14%
15	Missouri	13%
16	Indiana	13%
17	Rhode Island	13%
18	Kentucky	13%
19	New Jersey	13%
20	Colorado	13%
21	Kansas	13%
22	Massachusetts	13%
23	Illinois	13%
24	Oregon	13%
25	South Dakota	13%
26	Arkansas	13%
27	Alabama	13%
28	Nebraska	13%
29	West Virginia	13%
30	Delaware	12%
31	New York	12%
32	Virginia	12%
33	Wisconsin	12%
34	Tennessee	12%
35	Vermont	12%
36	Texas	12%
37	Oklahoma	12%
38	North Carolina	12%
39	Florida	12%
40	Idaho	12%
41	Arizona	12%
42	Montana	11%
43	North Dakota	11%
44	Nevada	11%
45	New Mexico	11%
46	Washington	10%
47	California	10%
48	Utah	9%
49	Alaska	9%
50	Wyoming	9%
51	Hawaii	9%

Average Student Loan Balances Over Time

The table below shows the average student loan balance over time. Student loan balances have increased dramatically over time, with the average student loan balance more than doubling over the period from 2007 through 2021. In 2007, the average student loan balance was $18,233, while the average student loan balance at the end of June 2021 was $37,105. Furthermore, the number of Americans carrying an outstanding student loan increased from 9% in 2007 to 13% of the population in 2021.

Year	Average Student Loan Balance	Percent of Population with Student Loans
2021	$37,105	13%
2020	$36,510	13%
2019	$35,205	13%
2018	$33,548	13%
2017	$32,087	13%
2016	$30,548	13%
2015	$29,144	13%
2014	$27,759	13%
2013	$26,268	13%
2012	$24,757	12%
2011	$23,238	12%
2010	$21,860	11%
2009	$20,467	10%
2008	$19,298	10%
2007	$18,233	9%

Methodology

We used data provided by the U.S. Department of Education on the Federal student loan portfolios held by the U.S. government. This dataset includes the total balance of the student loan portfolio by state, as well as the number of borrowers in each state. We also used data on population from each state provided by the U.S. Census Bureau.

To determine the states with the highest average student loan balances, we divided the student loan portfolio in each state by the number of borrowers in each state. We then ranked the states from the highest to lowest average balances.

To determine the states where the highest percentage of residents have student loans, we divided the number of outstanding student loan borrowers by the population of each state. We then ranked the states based on the percentage of residents carrying student loans.

We also calculated the average student loan balance nationwide over the period of 2007 through the present, along with the percentage of the population with an outstanding student loan.

Sources

1. U.S. Department of Education, Federal Student Aid, Federal Student Loan Portfolio, Portfolio by Location
2. U.S. Census Bureau, Annual Estimates of the Resident Population for the United States, Regions, States, and Puerto Rico