Total student loan debt in the U.S. stands at a staggering $1.75 trillion. This number has fueled political discussion in recent months, putting the pressure on leaders to alleviate the burden on the approximately 43 million borrowers in the country. So far, the Biden administration has canceled more than $15 billion in debt since taking office, but Biden’s more extensive campaign plans to cancel $10,000 in federal student loan debt per borrower have yet to come to fruition.
How is this surmounting debt distributed across the U.S.? Data provided by the Department of Education’s federal student loan portfolio indicates that as of September 2021, California’s borrowers have the largest debt total, with $144.73 billion in 2021—unsurprising given the state’s population.
When looking instead at the average debt per borrower, California’s $36,826 is actually lower than the national average of $38,150. Maryland, meanwhile, has the highest average debt per borrower, at $43,011 as of September. At the other end of the spectrum, North Dakota has the lowest debt per borrower ($29,095) and is the only state with an average debt per borrower of less than $30,000.
States with the highest debt totals don’t necessarily have the highest average debt per borrower—and one reason that explains why is state investment in education.
“Historically, we see a lot of student loan debt where the budgets have failed to address the cost of college,” says Cody Hounanian, executive director of the Student Debt Crisis Center. “When that happens, the cost was put onto the back of families.”
States like Massachusetts, California, and New York may have a lot prestigious universities, but they also prioritize higher education funding in their budget, Hounanian adds.
Meanwhile, states are also beefing up protections for student loan borrowers—which could also help explain some disparities in debt burdens. In September 2020, California passed the Student Borrower Bill of Rights, a consumer protection bill that aims to protect borrowers from potentially predatory loan servicers. Eleven other states, including Maryland, have passed similar bills according to the Student Borrower Protection Center. But California’s bill of rights is one of the strongest in the country, Hounanian says.
Efforts to provide scholarships and grants on both a local and state level could also contribute to a lower amount of average student loan debt per borrower, adds Natalia Abrams, president and founder of the Student Debt Crisis Center. Programs like the Blue and Gold Opportunity Plan, offered through the University of California system, help students cover tuition and fees if they are a California resident with an annual family income of less than $80,000 a year and are eligible for financial aid.
How borrower debt varies state-by-state
Since 2013, the first year for which data is available, the following 10 states saw an increase of at least 200% in the total amount of outstanding debt by 2021: Texas, Florida, Georgia, North Carolina, South Carolina, Louisiana, Mississippi, Arkansas, Delaware, and Nevada. And Louisiana experienced the biggest spike in student debt, with a 246% increase in total outstanding debt in that period. Borrowers in Louisiana have an average student loan debt of $34,573.
Here’s a look at the 10 states with the highest average student loan debt per borrower across the U.S.
1. Maryland
Average debt per borrower: $43,011
Total outstanding debt: $35.9 billion
2. Georgia
Average debt per borrower: $41,622
Total outstanding debt: $68.5 billion
3. Virginia
Average debt per borrower: $39,304
Total outstanding debt: $42.5 billion
4. Florida
Average debt per borrower: $38,577
Total outstanding debt: $100.59 billion
5. South Carolina
Average debt per borrower: $38,472
Total outstanding debt: $28.1 billion
6. New York
Average debt per borrower: $37,919
Total outstanding debt: $93 billion
7. Illinois
Average debt per borrower: $37,848
Total outstanding debt: $61.8 billion
8. North Carolina
Average debt per borrower: $37,681
Total outstanding debt: $49.1 billion
9. Delaware
Average debt per borrower: $37,559
Total outstanding debt: $4.7 billion
10. Vermont
Average debt per borrower: $37,386
Total outstanding debt: $2.9 billion
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