Many Americans across the country are facing the challenges of managing their student debt. According to the Department of Education, there was nearly $1.62 trillion in outstanding college-loan balances by the end of the second quarter of 2024. This debt burden varies from state to state, with some residents facing more debt than others.
Researchers at WalletHub conducted a study comparing the 50 states and the District of Columbia based on 12 key measures of indebtedness and earning opportunities. The goal was to identify where people are struggling the most and the least with student debt. Florida emerged as one of the states with the lowest amount of student debt, ranking 41 out of 51.
While some states like Mississippi, Pennsylvania, and Delaware topped the list for having the most student debt, Florida found itself in a relatively better position. States like Utah, Hawaii, and California were among the states with the least amount of student debt, with Utah ranking the lowest.
For individuals grappling with student debt and considering taking out a loan, financial experts recommend using tools like the Student Loan Calculator to determine an affordable monthly payment and payoff timeline. Planning carefully before borrowing for college is crucial, especially with federal student loan interest rates reaching a 12-year high for the upcoming academic year.
Cassandra Happe, a financial analyst, emphasized the importance of strategic financial planning when it comes to higher education expenses. She suggested exploring options like attending college in a less expensive state, seeking financial aid and grants, and calculating the affordable borrowing limit before taking out a loan.
As college tuition costs continue to rise, being mindful of managing student debt and exploring various avenues for funding education can alleviate the burden on individuals and families. By making informed decisions and planning thoughtfully, students can navigate the financial challenges associated with pursuing higher education.