[Vision2020] States With the Most Student Debt
kmmos1 at frontier.com
Tue May 17 07:29:10 PDT 2016
Since the University of Idaho, located in Moscow, Idaho, just held
another graduation commencement ceremony last Saturday, it is not an
inappropriate time to examine the collective student financial bill for
the educational experiences just completed.
*States With the Most Student Debt*
Today’s graduating class will carry more debt than any other class in
history. The average student loan debt at graduation rose from $18,550
in 2004 to $28,950 in 2014, a 56% increase, according to The Institute
for College Access and Success. At the same time, the cost of tuition of
a public four-year program at an in-state school rose 40% between 2005
to 2015 — less than the increase in loan debt.
According to the 10th annual “Student Debt and the Class of 2014,”
published by The Institute for College Access and Success, the increase
in student loan debts has varied considerably between states. Delaware’s
average student loan debt increased by 129% in just 10 years, moving
from seventh lowest in the nation in 2004 to the highest in 2014. 24/7
Wall St. reviewed all states to determine which had the highest amount
of average student loan debt in 2014. Delaware had the highest average
student loan debt at $33,808, while Utah had the lowest at $18,921.
While the national average student loan debt at graduation $28,950, the
cost over the full term of the loan is much higher. Current federal loan
interest rates range from 4.29% to 6.84%. At 5.0%, the $28,950 debt has
a final cost, not including any fees, of $36,847 over a 10-year term —
increasing the full cost by 27%.
*Click here to see the states with the most student debt.
States with higher median household incomes tend to also have a higher
average student loan debt. Of the 10 states with the highest average
student loan debts, seven have median household incomes above the
national average. Still, some states with similar student loan debts can
have significantly different income levels, which can dramatically
change how big the relative debt burden is.
Massachusetts and Alabama have nearly identical average student loan
debts, at $29,391 and $29,425, respectively. However, the typical
household in Massachusetts with a 25-44 year old head of household is
$77,266 — $30,724 greater than the typical household in Alabama. So
while the student loan debt is equal to 63% of the median yearly
household income for in Alabama, it is only equal to 38% in of the
Using data from the report, “Student Debt and the Class of 2014”
published by The Institute for College Access and Success, 24/7 Wall St.
reviewed average student loan debt for new 2014 graduates in every
state. TICAS also provided data on the average student loan debt in
2004. We also reviewed data on educational attainment and median
household incomes from the U.S. Census Bureau. Median household income
in all instances reflects households in which the head of household is a
25-44 years old. Interest rates Federal student loan interest rates are
from Federal Student Aid, an Office of the U.S. Department of Education.
North Dakota was excluded because there was not sufficient data available.
These are the states with the most and least student debt.
> Avg. student loan debt:* $26,091
*> Median household income 25-44 yr. old:* $51,693 (13th lowest)
*> Student loan debt as pct. household income:* 50.5% (18th highest)
*> College attainment rate:* 25.0% (10th lowest)
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