Outstanding student loan balances exceeded $1.72 trillion at the end of the second quarter of 2026, according to the Department of Education. This total represents more than $40,000 per borrower across 42.6 million Americans.
A WalletHub analysis compared the 50 states and the District of Columbia across 12 metrics, including average student debt, unemployment rates for adults ages 25 to 34, and the share of borrowers with past-due balances. The study identified Mississippi, Delaware, Pennsylvania, South Carolina, and West Virginia as the states with the most student debt. Conversely, Utah, Hawaii, California, Washington, and New Mexico were identified as having the least student debt.
In Mississippi, the average amount owed by people with student loan debt equals over 54% of the state's median income, which is the highest rate in the U.S. WalletHub analyst Chip Lupo noted that federal student loan interest rates recently hit a 12-year high, making careful planning essential for borrowers. Lupo advised students to consider attending less expensive states and pursuing financial aid and grants.
The ranking utilized dimensions of student-loan indebtedness and grant and student work opportunities. Metrics included average student debt, the proportion of students with debt, student debt as a share of income, and the share of loans in past-due or default status. It also accounted for the presence of student loan ombudsman laws and the availability of student jobs and paid internships.
