Average Student Loan Debt by State in 2023

It’s no secret that the cost of higher education in America is on the rise, with the average student loan debt increasing every year. How much debt are students across the country incurring in 2023? In this article, we’ll take a deep dive into the average student loan debt in each U.S. state and explore how these numbers are changing over time.

Table of Contents

• 1. Unveiling 2023 Student Loan Debt: State-by-State Breakdown
• 2. 2023 College Debt Statistics Reveal Stark Differences Across US States
• 3. What 2023 Student Loan Debt Tells Us About Higher Education in the US
• 4. Mitigating 2023 Student Loan Debt: Strategies to Tackle High College Costs
• Q&A

1. Unveiling 2023 Student Loan Debt: State-by-State Breakdown

Soaring Tuitions & Disappearing Aid Drive Student Debt

Student loan debt is reaching record-breaking highs. Rising tuition costs and decreasing availability of aid packages have created a mountain of debt that students must grapple with. By the end of 2023, total student loan debt in the U.S. is expected to reach $2.4 trillion, with each student owing an average of $37,000. But where in the U.S. is student debt highest?

To find out, we took a closer look at the average debt per borrower by state in 2023 and found some interesting results.

State-by-State Student Debt Breakdown

• New Hampshire – average of $54,170 per borrower
• Connecticut – average of $49,440 per borrower
• Rhode Island – average of $48,530 per borrower
• South Dakota – average of $44,740 per borrower
• Delaware – average of $43,380 per borrower

It goes without saying that those states tend to be more affluent than the nation as a whole. Not surprisingly, the states with the lowest average student loan debt per borrower were all in the Southeast. West Virginia and Arkansas had the lowest defaults at $26,160 and $28,370, respectively. The amount of student loan debt can also vary significantly from city to city, drawing a stark comparison between affordability and income.

Wondering what your state stands at? Stay tuned for more state-by-state updates coming soon.

2. 2023 College Debt Statistics Reveal Stark Differences Across US States

Making critical decisions about college debt is easier when you have the facts about how much students across the nation owe. After analyzing data from 2023 on college loan debt, some interesting patterns emerge.

For many students, college debt burden varies significantly depending on where they live. For example, Washington, DC students had the highest average debt, at an average of $31,563. Arkansas had the lowest average debt, at $14,651.

• The top 5 states with the highest average debt per student include:
  • Washington, DC: $31,563
  • Virginia: $27,116
  • Delaware: $26,774
  • Connecticut: $25,678
  • New Hampshire: $25,106
• The top 5 states with the lowest average debt per student include:
  • Arkansas: $14,651
  • New Mexico: $16,955
  • Oklahoma: $17,972
  • Alaska: $18,326
  • Montana: $19,719

3. What 2023 Student Loan Debt Tells Us About Higher Education in the US

In 2020, student loan debt topped one trillion dollars in the US, and projections show that the debt is only expected to continue to increase. By 2023, debt is expected reach nearly $1.5 trillion, which is an astonishing amount. This growth in student loan debt begs the question, what does it tell us about higher education in the US?

The increasing amount of student loan debt reveals a few things. Firstly, it speaks to the current cost of higher education. Many students are unable to attend college without taking out loans, as tuition and living expenses are simply too expensive. Consequently, the debt increases with every passing year, with the most recent data revealing that the average college student owes over $37,000.

Additionally, student loan debt opens a window into the current job market. In a healthy job market, college graduates are able to find work and pay off their loans. However, when the economy is suffering, many graduates find it difficult to pay off their loans. This is seen in the current job market, where graduates are stuck in a cycle of working and re-paying their loans without ever getting ahead of them.

Ultimately, 2023 student loan debt paints a pretty dire picture for higher education in the US. It reveals how expensive tuition is, and how difficult it is to get ahead after achieving a college degree. In this respect, it makes it clear that the current higher education system is in dire need of reform.

4. Mitigating 2023 Student Loan Debt: Strategies to Tackle High College Costs

Create a Budget Plan
When dealing with the looming cost of college tuition, crafting a budget plan is essential in order to stay on track. Identify possible sources of income such as scholarships and grants, then factor those in when budgeting. It’s also important to establish a line of communication with your chosen college, and ascertain whether or not there are additional funds available through specific programs. Additionally, it’s important to consider and factor in the average cost of living in the area, and calculate food and other necessities into the monthly budget before the start of the school year.

Employment during School Time
Attaining part-time employment during school time can be a worthwhile effort; however, make sure to look out for your academic performance when deciding on a job. Aim to work no more than twenty hours per week, and try to find jobs during the semester break so as to avoid any potential conflicts with the academic calendar. Additionally, the more money you’re able to make during the school year, the more you can apply towards the upcoming semester’s college expenses. Aim to make as much as possible while still clocking in enough time for yourself to dedicate to studies and leisure.

Q&A

Q: How much is the average student loan debt by state in 2023?

A: According to a recently released report, the average student loan debt in 2023 varies greatly between states. In some of the highest ranking states, students will have an average of $37,000 in student loan debt, whereas other states with lower tuition fees have an average of only $13,000. The national average stands at $27,000.

With the wide array of student loan options available to students, it’s important for anyone considering taking out loans to weigh their options carefully and anticipate future debt burdens. With an expected annual average student loan debt of nearly $7,000 for most states, now is the time to start planning to make sure your financial future looks bright.