Map Reveals States With Worst Student Loan Debt
New data released by the Federal Reserve Bank of New York shows which U.S. states have the highest student loan debt, highlighting stark differences in how it is distributed across the country.
Washington, D.C., stands out dramatically-borrowers owe an average of $56,280, well above the average in every U.S. state.
The data comes at a time when a growing share of students are questioning whether college is worth the price at all. A recently released survey from WalletHub Student Money showed more than a quarter of college students say their tuition is not a good investment. While most students still say college is worth the price, skepticism is growing at a time when tuition remains high, and concerns about the cost of living and career prospects run rampant.
Why It Matters
Student debt continues to be a burden for millions. The U.S. has some 42 million people with student loans. In several states, more than a quarter of student loan borrowers are behind on their payments, according to researchers at The Century Foundation and Protect Borrowers.
Debt and defaults can impact credit scores and subsume a share of early-career income for recent graduates with high debt.
Average tuition and fees rose about 3 percent year over year in the 2025-2026 academic year, with much higher prices at private colleges, per the U.S. News & World Report. Those costs, alongside living expenses, continue to drive student loan borrowing.
States With the Worst Student Loan Debt
The District of Columbia stands far above every state in average student loan balance, with borrowers carrying more than $56,000 on average, roughly $20,000 higher than the next‑highest state. Following D.C., states like Georgia, Maryland, Virginia, Florida, and New York form a cluster of high‑debt regions, each averaging between $36,000 and $41,000 per borrower. Rounding out the top ten are California, Oregon, South Carolina, and Alabama, each with average balances in the $35,000 range.
D.C.'s outsized balances are closely tied to its education profile. Roughly 36 percent of D.C. residents hold a graduate or professional degree, per Census Bureau Data. That's nearly triple the national rate. Graduate programs are significantly more expensive than undergraduate degrees, with medical school costing about $60,000 per year and law school averaging about $46,000 per year.
Graduate students make up only 17 percent of all college enrollment but account for about half of all student loan volume.
The burden of student loans extends well beyond individual borrowers. States with the highest balances often see reduced discretionary spending, lower revenue for local businesses, and strain on job markets, especially in areas with elevated delinquency rates.
Two states with large numbers of D.C. commuters also rank near the top: Maryland at $40,970 and Virginia at $36,600. Both states have above‑average shares of graduate degree holders and benefit from proximity to federal and professional jobs that often require advanced credentials.
Georgia is the major outlier. Despite having only 12.8 percent of residents with graduate degrees-close to the national average-it ranks third in average borrower debt at $39,670.
The reason lies in the state's financial aid model. While need‑based aid accounts for 74 percent of aid nationally, in Georgia, it's 1 percent. The state's merit‑heavy system means wealthier students are three times more likely to receive full‑tuition scholarships, low‑income students rely more heavily on loans, and debt rises even without high graduate‑school participation. Civil rights groups, including the NAACP Legal Defense Fund, have criticized the structure.
What Happens Next
The U.S. Department of Education has announced that caps on federal loans for graduate school programs will go into effect as of July 1. The Trump administration’s broader education budget, though, must still be reviewed and approved by Congress.
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This story was originally published May 7, 2026 at 10:46 AM.