Despite President Biden’s recent loan forgiveness announcement of $40 billion in relief, the Supreme Court’s rejection of his larger proposed bill reflecting a forgiveness plan of $400 billion will hit states with the highest average student debt rates hardest.
According to a recent study conducted by CreditDonkey, the state of Maryland has the country’s highest levels of student loan debt. With an average debt load of $42,543 for student loan holders, the relief of this federal bill would have been a much-welcomed break.
The research, conducted by analyzing data from the Federal Reserve Bank of New York, also identifies Georgia, Delaware, Virginia, and New York among the states with the highest student debt ratios per borrower.
States With the Highest Student Loan Debt
Maryland students, current and past, hold the highest student debt load, CreditDonkey research shows. With a total federal student debt balance of $36,787 billion, the 864,700 borrowers are each into their academic loans for an average of $42,543 each. At the state level, Maryland has worked to address this student loan debt crisis with the Student Loan Debt Relief Tax Credit, introduced in 2017, for individuals who meet specific eligibility requirements. Although a step in the right direction, Federal action may further the debt relief for folks needing support.
Placing second is the state of Georgia, with an average loan debt of $41,826 among its 1,641,000 borrowers.
In third place is Delaware, which despite its low number of borrowers (137,300), has a high average debt load of $39,238 per person.
The fourth and fifth-ranked states are Virginia and New York, respectively. Virginia records an average of just over $39,000 in debt per borrower, and New York’s loan holders owe an average of $38,668 each.
Other notable states ranking in the top ten are Florida in sixth with $38,653 per borrower, Oregon at $38,248, Illinois at $37,869, California at $37,783, and Alabama at $37,730.
Among these ten states, California has the highest recorded number of borrowers, with 4,021,200 individuals carrying student debt. Delaware has the least number of student debt holders at 137,300.
A spokesperson for CreditDonkey commented on the study: “It’s no secret that the cost of a college education has soared over recent decades, with the average price of tuition, fees, and room and board increasing by 169% for an undergraduate degree between 1980 and 2020.”
But the question is then begged, what will the Feds do about it?
Biden Failed to Deliver Students’ Loan Forgiveness Bill
For most individuals shouldering student loan debt while working to manage the higher cost of living, simply making more money may not be a feasible solution. With Americans working hard to stay afloat, Biden’s Federal loan forgiveness bill may have answered their student debt woes.
However, that bill came at a steep price, and the Supreme Court felt it was simply too high to justify.
“These findings provide an intriguing insight into where student loan debt is most prominent throughout the country,” says CreditDonkey spokesperson, “At an estimated cost of about $400 billion, Biden’s plan to forgive student debt [would have been] one of the most expensive executive actions in history.”
Despite Biden’s bill proposing $400 billion in relief for tens of thousands of loan holders getting rejected by the Supreme Court, a short two weeks later, Biden announced, along with the Ministry of Education, that forgiveness of $40 billion in student loans for 800,000 borrowers across the country is on its way. This, among other existing student loan relief programs in the country, helps ease the burden on Americans battling the costs of education.
States With the Lowest Student Loan Debt
While any amount of debt can feel cumbersome and stress-inducing for individuals, lighter debt loads may feel more manageable. These are the states that CreditDonkey identified as having the lowest student loan debt in America:
- South Dakota has the lowest amount, with an average of $28,218 in debt per student loan borrower;
- Iowa is the second lowest, at $29,845;
- Alaska places third, with $30,427;
- In fourth is North Dakota, at $30,542; and
- Wyoming with a slim spread at $30,581.
The research shows that South Dakota’s figures reflect student borrowers that make up only 12.9% of the state’s total population – that is, 135,600 people.
Iowa has 465,500 borrowers, while Alaska, North Dakota, and Wyoming have 70,600, 114,000, and 57,600 student loan holders, respectively.
The ten states with the lowest student debt averages are rounded out by Wisconsin ranking sixth ($31,482), Nebraska in seventh ($31,551), followed by Arkansas in eighth ($31,851), Indiana ($32,045) in ninth, and Oklahoma placing tenth (480,800).
No matter whether Americans are finding themselves in significant debt, or are working hard to pay off the final few hundred owed, relief from Government offers a chance to reset, recalibrate, and move forward. The coming year will be telling as to whether Americans can expect more help from the Feds to manage their student debt.
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