INDIANAPOLIS – A recent study conducted by banking experts CreditDonkey has revealed that Indiana ranks among the top 10 states with the lowest student loan debt in America. The research compared all 50 states based on the most recent student debt data from the Federal Reserve Bank of New York, aiming to identify the states with the highest proportion of student debt per borrower.
According to the study, Indiana residents have the ninth-lowest average student loan debt in the country. With a total of 924,000 student loan borrowers in the state, the average loan debt per borrower stands at $32,045.
But, according to WalletHub, Indiana is also one of the least educated states. Indiana ranked 38th for overall education, just ahead of states in the deep south.
South Dakota claimed the top spot for having the lowest average student loan debt in America. Approximately 12.9% of the state’s residents carry federal student loan debt, with a total of 135,600 borrowers. On average, South Dakota borrowers have a debt of $28,218.
Following South Dakota, Iowa ranked second on the list, boasting the second-lowest proportion of student loans per borrower. The state has 465,500 student loan borrowers, with an average debt of $29,845. Iowa’s student loan forgiveness programs targeting various professions, including doctors, nurses, teachers, and healthcare providers, contribute to its low average debt.
Alaska secured the third position, with its residents holding the third lowest average student loan debt compared to borrowers in other states. The average loan debt per borrower in Alaska amounts to $30,427, and the state has a total of 70,600 student loan borrowers.
North Dakota and Wyoming claimed the fourth and fifth spots, respectively, with average student loan debts of $30,542 and $30,581 per borrower.
On the other end of the spectrum, Maryland emerged as the state with the highest average student loan debt. The state’s 864,700 student loan borrowers collectively carry a federal student loan debt balance of $36,787 billion, resulting in an average debt of $42,543 per borrower.
Georgia followed closely in second place, with a total of 1,641,600 student loan borrowers in the state and an average debt of $41,826 per borrower.
Delaware ranked third, with an average federal student loan debt of $39,238 per borrower among its 137,300 student loan borrowers.
Virginia and New York secured the fourth and fifth positions, respectively, with average debts of $39,001 and $38,668 per borrower.
The top ten list concluded with Florida in sixth place, followed by Oregon, Illinois, California, and Alabama in seventh to tenth positions, respectively.
A spokesperson for CreditDonkey commented on the study, highlighting the significant rise in college education costs over the past few decades. They noted that President Biden’s proposed student loan forgiveness plan, estimated to cost around $400 billion, could have implications for states grappling with high student loan debt. The Supreme Court is expected to issue a decision regarding the plan before the end of June, which will provide crucial clarity for millions of student loan borrowers eagerly awaiting relief.