Writer: Erica Sandberg
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
Cost of living, taxes, and wages all factor into why we see such drastic price differences between states like California and Mississippi, for example. While some cost variances are more subtle in effect, other expenses, such as rent and insurance rates, are enough to make other state inhabitants wish they could pack up and move to reap the savings.
Another expense that varies from state to state is college tuition. In 2025, the average total cost of attendance for a student residing on campus at a public four-year in-state institution is $108,584. A private, nonprofit university, including room and board, costs students $234,512 over four years.1
Though debt can be very high no matter where you live, significant pricing differences exist between states, making some institutions appear more affordable than others. Below, we’ll cover how average student loan debt differs by state.
Outstanding Student Loans Total $1.77 Trillion
It’s no surprise that people working toward an advanced degree often borrow money to cover the costs of their education. In fact, every year, 85% of new undergraduates take out student loans to pay for their education.1
Out of those student loans, the U.S. Department of Education owns most federal student loans, accounting for approximately 92.2% of student loan debt.2 Private loans cover the remainder.
In aggregate, the country’s outstanding student loan balance sat at $1,777,101.97 in Q4 2024. After seeing several dips in the last year, the total student loan debt surged by 2.77% in the last quarter of 2024.2
The previous decline can be attributed to the Biden-Harris Administration approving student loan debt cancellations. In December 2023, the Biden-Harris Administration approved another wave of recent debt forgiveness totaling almost $132 billion for more than 3.6 million qualified borrowers.3
People who were eligible for the cancellation programs had to be in income-driven repayment plans and in repayment mode for a minimum of 20 years.
How That Debt Breaks Down By State
The amount of student loan debt differs by state. Here is the portfolio of federal student loan balances as of December 2024 for each state as well as the number of borrowers.4
| Location | Balance (in billions) | Borrowers (in thousands) |
|---|---|---|
| Alabama | $24.9 | 658.4 |
| Alaska | $2.4 | 66.9 |
| Arizona | $32.9 | 919.2 |
| Arkansas | $13.8 | 405.6 |
| California | $151.5 | 3,955.6 |
| Colorado | $29.2 | 780.9 |
| Connecticut | $19.1 | 518.5 |
| Delaware | $5.3 | 136.4 |
| District of Columbia | $6.4 | 117.3 |
| Florida | $108.1 | 2,731.6 |
| Georgia | $71.7 | 1,698.0 |
| Hawaii | $4.8 | 123.3 |
| Idaho | $7.4 | 220.1 |
| Illinois | $63.4 | 1,623.9 |
| Indiana | $30.1 | 905.7 |
| Iowa | $13.2 | 430.0 |
| Kansas | $12.7 | 384.7 |
| Kentucky | $20.7 | 614.4 |
| Louisiana | $23.8 | 683.5 |
| Maine | $6.5 | 189.2 |
| Maryland | $37.1 | 847.4 |
| Massachusetts | $32.6 | 920.9 |
| Michigan | $51.6 | 1,395.6 |
| Minnesota | $26.9 | 787.4 |
| Mississippi | $17.0 | 452.7 |
| Missouri | $29.7 | 833.1 |
| Montana | $4.4 | 128.6 |
| Nebraska | $8.0 | 248.4 |
| Nevada | $12.7 | 365.4 |
| New Hampshire | $6.7 | 192.2 |
| New Jersey | $46.5 | 1,247.1 |
| New Mexico | $7.8 | 227.7 |
| New York | $96.3 | 2,485.1 |
| North Carolina | $53.5 | 1,374.3 |
| North Dakota | $2.6 | 89.3 |
| Ohio | $62.6 | 1,784.9 |
| Oklahoma | $16.4 | 508.6 |
| Oregon | $20.3 | 533.7 |
| Pennsylvania | $67.4 | 1,866.0 |
| Puerto Rico | $10.8 | 335.0 |
| Rhode Island | $5.0 | 149.7 |
| South Carolina | $30.0 | 774.9 |
| South Dakota | $3.7 | 118.7 |
| Tennessee | $33.1 | 893.3 |
| Texas | $131.9 | 3,905.8 |
| Utah | $10.9 | 321.8 |
| Vermont | $2.9 | 76.8 |
| Virginia | $44.3 | 1,099.6 |
| Washington | $29.0 | 790.0 |
| West Virginia | $7.4 | 228.8 |
| Wisconsin | $23.6 | 723.5 |
| Wyoming | $1.7 | 55.5 |
California has the Most Student Loan Debt at $151.1 Billion
The state with the highest student loan debt is California, with an aggregate portfolio of $151.1 billion.4 However, this state also has the highest number of borrowers, at 3,976.6 million.
In fact, the number of borrowers is the driving factor in how much student loan debt is owed in a state. To round out the top three states with the highest student loan debt:
- Texas: $131.9 billion, 3,905.8 million borrowers
- Florida: $108.1 billion, 2,731.6 million borrowers
A primary reason for so many student loan borrowers is the population. These same states also have the highest populations in the country, and in the same order5:
- California: 39,431,263
- Texas: 31,290,831
- Florida: 23,372,215
Wyoming has the Least Student Loan Debt at $1.7 Billion
The lowest per-state student loan debt belongs to Wyoming, with an aggregate portfolio of just $1.7 billion in outstanding obligations.4 However, Wyoming also has the lowest number of borrowers, at 55.5 million.
As with the highest statewide student loan debt, the number of borrowers is a significant factor in the amount owed by location. The next two states with the lowest student loan debt and their corresponding number of borrowers:
- Alaska: $2.4 billion, 66.9 million borrowers
- Vermont: $2.9 billion, 76.8 million borrowers.
Population correlates to these statistics, with the three least populated states being:
- Wyoming: 587,618
- Alaska: 740,133
- Vermont: 648,493
Additional Causes of Student Loan Debt
Student loan debt is exorbitantly high, and some states are experiencing the brunt of this debt worse than others. But why so? There are several factors to weigh when analyzing the data.
Rising tuition and assorted educational costs are foundational reasons for high student loan debt. However, less recognizable factors also exist and play a major role into why some states see higher level of debt.
Statistics show a correlation between the population of a state and the number of borrowers. The higher the state population, the more borrowers they have, as we have seen with the top three populated states: California, Texas, and Florida. This drives up the amount of money borrowed.
Another important consideration is the concentration of colleges and universities within the state. For example, California has the greatest number of higher education institutions in the United States, at 644, while Wyoming has just 10.6,7
Students also can’t ignore the area’s cost of living while enrolled in college. States with higher costs of living, which include rent, food, and other essentials, will be more expensive to reside in, causing students to spend and borrow more to pay for their education.
Finally, these figures only include federal student loans, which come with low interest rates and flexible repayment terms. Some students also turn to private student loans — which tend to have higher interest rates — to make up the difference when expenses escalate.
Private loans can make repayment more expensive over time due to high interest rates, further increasing overall student loan debt.
More Student Loan Debt Statistics
Average Student Loan Debt Per Month
Average Student Loan Debt by Degree
Average Student Loan Debt by Year
Average Student Loan Debt by Age
Average Student Loan Debt by Generation
Average Student Loan Debt by Race
Data Sources:
1 https://educationdata.org/average-cost-of-college
2 https://educationdata.org/student-loan-debt-statistics
3 https://www.ed.gov/news/press-releases/biden-harris-administration-announces-nearly-5-billion-additional-student-debt-relief
4 https://studentaid.gov/data-center/student/portfolio#servicer-portfolio-by-loan-status
5 https://www.statsamerica.org/sip/rank_list.aspx?rank_label=pop1
6 https://www.appily.com/colleges/best-colleges/state
7 https://www.collegesimply.com/colleges/wyoming/
