Which states have the most and least student debt? Washington’s ranking may surprise you

Closing the second quarter of 2024, Americans are approaching a total of $1.62 trillion in outstanding college loans, according to the Department of Education. With 42.8 million borrowers, that averages almost $38,000 per person.

Personal finance site WalletHub used the recent Department of Education information and other data to determine which states have the most student debt. Using 12 metrics relating to debt and earning opportunities, all 50 states and Washington, D.C. were ranked.

Washington was among the states with the least student debt.

States ranked by student debt

According to WalletHub, the five states with the most student debt are:

1. Mississippi
2. Pennsylvania
3. Delaware
4. West Virginia
5. South Carolina

The five states with the least student debt, ending with rank 51, are:

• New Mexico
• California
• Washington
• Hawai’i
• Utah

WA’s low student loan debt

So why is Washington so low on the ranking?

The 12 metrics analyzed were split into two categories: student-loan indebtedness and grant and student work opportunities. With varying weights, they included:

Student-Loan Indebtedness

• Average student debt

• Proportion of students with debt

• Student debt as share of income

• Share of student loans in past-due or default status

• Share of federal student loan borrowers enrolled in an income-driven repayment plan

• Share of student-loan borrowers aged 50 years and older

Grant and Student Work Opportunities

• Unemployment rate among population aged 25 to 34

• Underemployment rate

• Availability of student jobs

• Availability of paid internships

• Grant growth

• Presence of “student loan ombudsman” law

Washington did well in many of these categories, falling in the bottom ten for average student debt, proportion of students with debt and student debt as percent of income (adjusted for cost of living).