WalletHub’s recent study reveals the states burdened with the highest level of student debt. These findings shed light on the challenges students face in managing educational costs and highlight the need for improved financial support and planning.
Mississippi
Mississippi tops the list for student loan indebtedness with a total score of 66.42. Families with low incomes often have to take on a lot of debt to pay for higher education. The state’s economic challenges and limited job opportunities increase the tax burden. Despite ranking 11th in grant opportunities, many students still find themselves deep in debt.
Pennsylvania
Pennsylvania ranks 3rd in student loan indebtedness, scoring 61.25. High tuition costs at both public and private institutions contribute to this problem. The state’s competitive job market often requires advanced degrees due to which students take out more loans. Limited grant opportunities, with a rank of 21st, do not help with the issue.
Delaware
Delaware’s small size belies its big student debt problem. The state ranks 4th in student loan indebtedness with a score of 60.85. High living costs and limited in-state college options force many students to attend pricier out-of-state schools. It ranks 18th in grant opportunities which highlights how it fails to offset the financial burden for many students.
West Virginia
West Virginia’s high student debt reflects its economic challenges, scoring 60. The state ranks 7th in loan indebtedness despite being 5th in grant opportunities. Limited high-paying job prospects after graduation make it difficult to repay loans. The state’s focus on traditional industries may not align with emerging career fields.
South Carolina
South Carolina ranks 6th in student loan indebtedness, with a total score of 58.28. The state’s emphasis on higher education as a path to economic growth leads many to pursue degrees. However, limited grant opportunities with a rank of 25th, means students often rely heavily on loans.
New Hampshire
New Hampshire’s 2nd place ranking with a score of 58.26 in loan indebtedness is striking. The state’s high cost of living and expensive universities contributes to this issue. New Hampshire ranks 45th in grant opportunities which highlights the students relying heavily on loans. Plus, the small size of the state may limit job opportunities for graduates.
South Dakota
South Dakota ranks 5th in loan indebtedness, scoring 58.04. Limited local job opportunities push many students to pursue higher education. However, poor grant availability with the state ranking 43rd leads to heavy borrowing. The state’s small population may struggle to support diverse, high-paying industries.
New Jersey
New Jersey ranks 8th in student loan indebtedness with a complete score of 56.47. The state’s high cost of living and expensive private colleges leads to this problem. Competitive job markets often require advanced degrees, leading to more borrowing. Despite being a healthy state image, grant opportunities are limited with the state ranking 33rd.
Ohio
Ohio’s 9th place ranking in loan indebtedness reflects its changing economy. It brings the total score to 55.42. As traditional industries decline, more students pursue higher education for new opportunities. However, grant availability has not kept pace with the demand, ranking 22nd.
Kentucky
Kentucky ranks 14th in loan indebtedness, scoring 55.33 but 2nd in grant opportunities. This disconnect suggests high education costs relative to income levels. The state’s push for higher education to drive economic growth may outpace job creation. Graduates in rural regions face difficulty in finding high-paying jobs.
Georgia
Georgia ranks 10th in student loan indebtedness, scoring a total of 54.95. The state’s push for higher education to boost economic growth leads many to pursue degrees. However, grant opportunities with a rank of 17th do not fully meet the demand. Atlanta’s competitive job market often requires advanced degrees which drives up debt levels.
Arkansas
Arkansas ranks 13th in loan indebtedness despite being 8th in grant opportunities. It brings the total score to 54.92. The discrepancy highlights the state’s economic challenges. Repayment of loans is challenging in rural areas since there are few high-paying job opportunities. The state’s efforts to improve education access may outpace local economic development.
Louisiana
Louisiana’s 19th rank in loan indebtedness, coupled with its 4th rank in grant opportunities reveals complex challenges. This results in a score of 53.09. The state’s effort to provide financial aid is commendable. However, a struggling economy and limited job growth in emerging sectors make it hard for graduates to repay loans quickly.
Michigan
Michigan ranks 18th in loan indebtedness, scoring 52.82, and 7th in grant opportunities. This reflects the state’s ongoing transition from the traditional manufacturing sector to a more diverse economy. While financial aid is available, the evolving job market may not yet fully support graduates’ earning potential.
Alabama
Alabama ranks 16th in loan indebtedness with a score of 52.08 and 27th in grant opportunities. The state’s push for higher education as an economic driver leads many to pursue degrees. However, the job market, especially in rural areas, may not support the influx of graduates. This leads to debt burdens.
Kansas
Kansas ranks 17th in loan indebtedness and 28th in grant opportunities. The total score of the state stands at 51.83. The state’s mix of rural and urban economies creates disparities in job opportunities. While some sectors thrive, other sectors struggle. This makes loan repayment challenging for many students.
North Dakota
North Dakota ranks 11th in loan indebtedness with a complete score of 51.51. The state’s 41st rank in grant opportunities suggests a reliance on loans for education funding. The volatility of the energy sector may impact graduates’ ability to repay loans consistently.
Connecticut
Connecticut ranks 12th in loan indebtedness, scoring 50.82, and 44th in grant opportunities. The state’s high cost of living and expensive private institutions results in student debt. Despite a strong overall economy, the limited financial aid forces students to rely heavily on loans.
Indiana
Indiana ranks 22nd in loan indebtedness with a final score of 50.59. The state’s transitioning industry impacts graduate employment. It ranks 14th in grant opportunities. So, while financial aid is available, the evolving job market may not fully support rapid loan repayment.
Rhode Island
Rhode Island ranks 15th in loan indebtedness, scoring 49.66. The state’s small size limits in-state education options, often leading students to costlier out-of-state schools. With 46th rank in grant opportunities, students have to rely on loans which increases the debt burden.