Dreading student loan debt?
When you’re choosing a college, you don’t do it based on tuition — but maybe you should consider it, based on job and grant availability. Not necessarily when you graduate, but while you’re still in school.
Those are just a couple of the nine factors that WalletHub used in scoring the 50 states and the District of Columbia to see which places are best — and which are worst — for student loan debt.
Other questions WalletHub asked included these: Which places have the highest levels of student loan debt? Where are folks in their 50s still paying off college loans? Where is it tough to get a job to make those easy (well, maybe not so easy) monthly payments?
After taking into account data from a range of sources, including the U.S. Census Bureau, Bureau of Labor Statistics, Institute for College Access & Success, Federal Reserve Bank of New York, Council for Community and Economic Research, U.S. Department of Education College Affordability & Transparency Center, Internships.com and Indeed, WalletHub ranked all the states and D.C. as well, coming up with the following list of the 10 best states for student debt:
Although there are other colleges and universities in New Mexico, most people are familiar with the University of New Mexico.
10. New Mexico
New Mexico ranked eighth for student loan indebtedness, but a depressing 46th for grant and work opportunities for students — and an even more depressing third-highest percentage of student loan balances past due or in default.
But it boasts other positives, despite being at the bottom of the top 10: It has the second lowest average student debt in the country and the fifth lowest proportion of students with debt.
The University of Hawaii athletic fields reflect the school’s moniker of Rainbow Warriors.
9. Hawaii
Despite its 10th place finish for student loan indebtedness, Hawaii has the third highest student debt as a percentage of income, adjusted for cost of living.
But on the plus side, it’s also tied with Louisiana for third-lowest proportion of students with debt and also placed 16th for grant and work opportunities for students.
Colorado School of Mines in Golden, one of many excellent colleges in the state, is known for offering a private-school education at a state-school price.
8. Colorado
Colorado placed 15th for student loan indebtedness, but 10th for grant and work opportunities for students — so there’s a chance you can start to whittle down that debt before graduation.
The state also has the fifth lowest unemployment rate for people aged 25–34.
A wintry scene at the University of Alaska at Fairbanks campus; Alaska has a low level of student loan indebtness.
7. Alaska
Alaska offers more in the way of a low student loan indebtedness ranking, placing sixth in that category, than it does in grant and work opportunities for students. There it placed 39th — not dismal, but not great.
Of course, the winters are probably more conducive to study than to lots of other activities.
Gonzaga University and Spokane, Washington nestled beneath snowy peaks; the state overall placed fifth for student loan indebtness.
6. Washington state
Washington state did well on debt, placing fifth in the student loan indebtedness rank.
However, when it came to grant and work opportunities for students, it was a different story; the state lagged in 48th place. So be prepared to hit those loans after you graduate, because it will be tough to get a head start while you’re still attending classes.
The Lawn at the University of Virginia; the state placed well for grant and work opportunities for students.
5. Virginia
Virginia has the fifth lowest student debt as a percentage of income, when adjusted for cost of living.
The state also placed seventh overall in student-loan indebtedness ranking and in grant and work opportunities for students.
Students in Nevada, such as those attending the University of Nevada Las Vegas, have the third lowest average student loan debt in the U.S.
4. Nevada
In addition to coming in fourth overall, Nevada placed fourth in the student-loan indebtedness ranking; it has the third lowest average student loan debt in the country.
It also tied for first place with Wyoming for having the lowest proportion of students with debt and has the third lowest percentage of student-loan borrowers aged 50 and up.
North Dakota State University has the enviable position of being in a state where student loan debt is low.
3. North Dakota
North Dakota came in at 31 out of 51 for grant and work opportunities for students, but it placed third in the country for the lowest student debt as a percentage of income, adjusted for cost of living.
It also took top place for the lowest unemployment rate for people aged 25–34, and second place for the lowest percentage of student loan balances past due or in default.
The University of Wyoming in Laramie, as seen from above, with the sidewalks crossing Prexy’s Pasture; Wyoming has the lowest student loan debt as a percentage of income in the U.S.
2. Wyoming
Wyoming had the lowest student loan debt as a percentage of income, when adjusted for cost of living. It also tied, with Nevada, for the lowest proportion of students with debt.
It didn’t do as well on grant and work opportunities for students, though, coming in at 47 out of 51.
The University of Utah administration building in Salt Lake City; Utah had the lowest average student loan debt in the U.S.
1. Utah
Utah came out on top among all 51 locales evaluated by WalletHub. It not only had the lowest average student debt and the second lowest student debt as a percentage of income — adjusted for cost of living — but also was tied with North Dakota and Nebraska for the lowest unemployment rate for people aged 25–34.
In addition, it had the fourth lowest percentage of student-loan borrowers aged 50 and over — a good sign that you won’t be buried in student loans for the rest of your life.
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