Five states nationwide have the highest student loan balances. California, Texas, and Florida round out the top three. (iStock)
Student loan debt is in the trillions of dollars Will exceed $1.6 trillion in 2023. For many, loan forgiveness is still not in sight, and borrowers across the country continue to be saddled with student debt.
The Office of Federal Student Aid maintains records Specific student loan debt status for each state. Certain states are worse off than others, and some have taken steps to curb excessive borrowing.
It's not really surprising that the states with the highest student loan balances are some of the most populous states in the country, and the states with the lowest balances are among the least populous.
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States with the highest student loan balances
1. California
The nation's third-largest state and first-most populous state also has the highest student loan balances. Total student loan debt is $146.7 billion.
2. Texas
Texas is a close second behind California in outstanding student loans, with $125.7 billion in outstanding student loans. It's no surprise since Texas is her second largest state by land and population.
3. Florida
Florida also has a large student loan burden, with outstanding loans totaling $103.3 billion.
4. New York
Home to millions of people and hundreds of universities, New York faces a total student loan balance of $93.3 billion.
5. Georgia
Georgia, which ranks last on the list of top states, had $69 billion in outstanding student loan debt, lower than some states but still a significant burden for borrowers.
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States with the lowest total student loan balances
1. Wyoming
Wyoming, one of the most rural and least populated states in the country, has one of the lowest total student loan debts at $1.7 billion.
2. Alaska
Alaska is the third least populated state, but has the second least total student loan debt at $2.4 billion.
3. North Dakota
North Dakota's student loan balance totals $2.6 billion, closing in on Alaska.
4. Vermont
There are just over 78,000 student loan borrowers in Vermont, with total student loan debt totaling $2.9 billion.
5. South Dakota
South Dakota has slightly more student loan debt than its neighbor to the north. Total student loan debt is $3.6 billion.
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Several states are grappling with student debt crisis
To help students better understand the impact of their student loans, some states have enacted laws targeting private student loan lenders.
“The loan repayment environment has changed dramatically since the department began working with multiple debt servicers in 2009,” said Richard Cordray, chief operating officer of Federal Student Aid (FSA). in a press release.
In order to respond to such environmental changes, connecticut and colorado introduced legislation in 2021 that would require private lenders to be licensed to operate in these states.
same year, maine and louisiana We have created a Private Education Financier Registry that all private lenders wishing to operate in the state must register and meet certain requirements.
Several other states have passed “right-to-know” laws to help high school students make informed decisions about the lenders they do business with. west virginia law The system, passed in 2020, provides students with a complete picture of the true cost of attending university and offers alternative career path options.
kentucky, tennesseeand missouri has similar legislation and has created a database and resource site to help high school students and their families understand the cost of college.
Other states are following suit, enacting laws and resources for students before they even begin college to ease their financial burden.
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