The student loan crisis is real and there seems to be no end in sight. In fact, there is some belief that student loan debt might lead to the next financial crisis. And the worse hit by this debt
Personal finance website Make Lemonade found that student loan debt is now the second highest consumer debt category — second only to mortgages and higher than credit card debt. “According to Make Lemonade, there are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt. The average student in the Class of 2016 has $37,172 in student loan debt. The average student in the Class of 2017 has almost $40,000 in student loan debt. Approximately 11.0 percent of student loan debt is in default or over 90 days delinquent,” Forbes reported in 2018.
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And debt has gotten higher in the past year. Deutsche Bank Research found that most student loan borrowers have balances between $10,000 and $25,000, but there are some states that have balances that are much higher.
“LendEDU analyzed data from 922 colleges and universities, including data from the graduating classes of 2007 through 2017, to find out where student debt burdens were the highest,” Fox Business News reported.
Here are the states with the highest student loan debt.
At the top was Pennsylvania, where as of 2017, the average debt per borrower in Pennsylvania was $35,988. In 10 years this was an increase of more than $12,100 increase. It is important to note, that Pennsylvania does have a large number of colleges in the state.
Next was Rhode Island, which only has 7 schools but the second highest average student loan debt at $35,371 per borrower as of 2017.
In third place is Delaware, with just one school in the state yet that average student loan debt is $34,144.
Continuing, New Hampshire had an average debt per borrower of $32,783 with ten schools in the state; student loan debt in Minnesota averaged about $32,499.
Rounding out the top 10 were: Alabama, $31,719 per borrower; Connecticut, $31,602; South Dakota, $31,324; Michigan, $30,903; New York, $30,899.