A new study reveals that Maryland has a higher prevalence of student loan debt than any other state, with an average loan debt of $42,543 per borrower. Georgia, Delaware, and Virginia carry some of the highest total loan balances in the country. South Dakota has the lowest student loan debt per borrower. (Photo credit: ShutterstockProfessional, Shutterstock.com)

The research by banking experts CreditDonkey compared all 50 states based on the most recent student debt data from the Federal Reserve Bank of New York to discover which states had the highest proportion of student debt per borrower.

The study revealed that Maryland has a higher prevalence of student loan debt than any other state. With 864,700 student loan borrowers, Maryland’s total federal student loan debt balance is $36,787 billion. This equates to an average loan debt of $42,543 per borrower.

The state of Maryland has also taken legislative measures to address student loan debt in the past. For instance, the Maryland Student Loan Debt Relief Tax Credit was introduced in 2017, which provides tax credits to certain individuals who have acquired student loan debt and are making timely payments.

Georgia placed next in the ranking with the country’s second-largest amount of student debt. In the Southeastern state, there are 1,641,600 student loan borrowers, with an average loan debt of $41,826 per borrower.

Delaware ranks third, with residents having the third highest average federal student loan debt compared to borrowers in other states. When broken down, Delaware has 137,300 student loan borrowers, with an average of $39,238 debt per borrower.

Virginia ranks fourth with the most significant amount of student debt, with an average of $39,001 per borrower, while New York follows in fifth place with $38,668. The top ten is rounded out by Florida ranking sixth, Oregon in seventh, and Illinois, California, and Alabama in eighth, ninth, and tenth, respectively.

South Dakota has the lowest average loan debt per borrower at the other end of the scale. Approximately 12.9% of all South Dakota’s residents hold federal student loan debt, which equates to an average of $28,218 debt per student loan borrower.

The study revealed that Iowa has the second lowest proportion of student loans per borrower. The state has 465,500 student loan borrowers, with an average of $29,845 of debt per borrower. Iowa has several student loan forgiveness programs, including specific programs for doctors, nurses, teachers, and other health care providers.

Alaska ranks next, with residents having the third lowest average student loan debt compared to borrowers in other states. When broken down, the average loan debt per borrower in Alaska is $30,427, and 70,600 student loan borrowers are in the state.

North Dakota ranks fourth with the lowest amount of student debt, with an average of $30,542 per borrower, while Wyoming follows closely behind in fifth place, with $30,581. The top ten is rounded out by Wisconsin ranking sixth, Nebraska in seventh, and Arkansas, Indiana, and Oklahoma in eighth, ninth, and tenth, respectively.

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.”

“These findings provide an intriguing insight into where student loan debt is most prominent throughout the country and where the country could benefit the most from President Biden’s proposed student loan forgiveness plan. At an estimated cost of about $400 billion, Biden’s plan to forgive student debt is one of the most expensive executive actions in history. The Supreme Court is expected to issue a decision before the end of June, providing much-anticipated clarity for millions of eager student loan borrowers.”

(Source: CreditDonkey.com)