10 States With the Highest Student Loan Debt, On Average

More than 43 million people in the U.S. are saddled with student loan debt -- and that's just for federal loans. Many more have private loans, as well. On average, federal loan borrowers owe around $37,000, per the folks at the Education Data Initiative, while those with private loans may owe as much as $40,000, on average.

Keep in mind that those are averages, meaning that while presumably plenty of people owe less, many owe much, much more. Even $35,000 in debt can be debilitating, hampering borrowers' attempts to save and invest for their future -- or even just pay their bills. With the overall average interest rate for student loans recently at 5.8%, a $35,000 debt would cost more than $2,000 annually just for interest alone, with the principal also needing to be paid down.

Image source: Getty Images.

Even that 5.8% is an average, meaning that many people face higher rates. Student loan debt loads also vary by state. Here's a look at the states with the highest student loan debt and the lowest-debt states.

The 10 states with the highest student loan debt

Here are the 10 states with the highest recent levels of student loan debt, per data from the U.S. Department of Education:

Data source: U.S. Department of Education (2023).  

It's worth noting that there's a place in the U.S. topping even Maryland -- the District of Columbia, with an average student debt load of $53,897.

If you're wondering why there's such disparity between different places, one explanation is that there are different mixes of educations procured in different places. In Washington, DC, for example, there may be more law school students, who are likely to rack up bigger loan balances. Some states may have extra-attractive state schools, too, which will tend to cost less than private colleges.  

The 10 states with the lowest student loan debt

Here, then, are the 10 states with the lowest student debt loads:

Data source: U.S. Department of Education (2023).  

If the state you live in isn't on either of those lists, that means it's somewhere in the middle, with an average student loan balance per borrower of between $32,888 and $37,232.

What to do about your student loans

If you're saddled with a lot of student loan debt, you can hope that President Biden's student loan cancellation plan becomes law -- as it's set to erase $10,000 of debt for around 40 million borrowers, and another $10,000 for those with Pell Grants, for a total of $20,000. Right now, the Supreme Court is considering the case.

Regardless of that, though, you'll likely still end up with some debt -- and repayments on student loans, which have been paused since earlier in the pandemic, are scheduled to resume in late August. After several years of reprieve, it may be a shock to many borrowers' budgets to suddenly have to cough up payments every month. So start planning and saving now -- and perhaps look into repayment plans that could prove helpful.

Here are a few more tips:

• Automate your payments. You may be able to have your loan repayment checks sent automatically and regularly from your bank account, saving you the trouble of remembering to do so.
• If you can, pay more than you owe each month, to be rid of the debt sooner. Once your repayments end, you'll be able to save and invest for retirement or other financial goals in earnest. Paying off loans early can also save you a lot in interest payments.
• Look into whether it makes any sense to refinance your loans. Doing so might get you a lower interest rate and/or a shorter remaining life of the loan.
• Consider taking on a side gig for a while, to generate extra cash for your loan repayments.
• Look into other loan forgiveness plans -- because President Biden's is not the only one. There are plans for those who are teachers or who work in public service, for example.
• See whether your employer offers any assistance with loan repayments. Just as many employers offer to help with tuition for employees taking courses, some will also help out with loan repayments.

One way or another, whether you owe a little or a lot, it's a good move to pay off your student loans as quickly as you can, to give your financial life more flexibility and allow you to build a more financially secure future.