Student debt has become a significant financial burden, growing faster than any other form of debt for many individuals in the United States. A new study by The Kaplan Group aims to provide an overview of student debt across various states and majors, highlighting the top and bottom states in terms of average debt, the prevalence of high debt amounts, and the total debt by state. Additionally, it examines the debt associated with different academic majors.
Key Takeaways
1. The District of Columbia has the highest average student debt in the United States, with an average amount of $53,782.
2. California holds the largest total student debt among all states, amounting to $146.7 billion. This highlights the extensive scale of student debt in the state, impacting a large number of individuals.
3. At the Doctoral level, the major of Pharmacy, Pharmaceutical Sciences, and Administration has the highest average debt, with an amount of $310,330.
States with the Highest Average Student Debt
The District of Columbia has the highest average student debt, amounting to $53,782. With $42,280, Maryland is the state with the highest average student debt. In Georgia, the average debt is $40,804, while Virginia has an average student debt of $38,900. Florida rounds out the top five with an average debt of $38,065.
Conversely, North Dakota has the lowest average student debt, at $28,921. Iowa’s average student debt is $29,943, and South Dakota’s is $29,975. Wyoming has an average student debt of $30,357, while Oklahoma’s average student debt is $31,182.
California has the largest total student debt, amounting to $146.7 billion. Texas follows with a total student debt of $125.7 billion. Florida’s total student debt is $103.3 billion, while New York’s is $93.3 billion. Georgia has a total student debt of $69 billion.
In the District of Columbia, 5.5% of student debts exceed $200,000. Maryland has 3.1% of student debts exceeding this amount, while California has 2.9%. In Georgia and Florida, 2.6% of student debts exceed $200,000.
States with the Highest Percentage of Debtors Over Age 35
In New Mexico, 57.9% of debtors are over the age of 35. Oregon has 54.8% of debtors over this age, while Oklahoma has 54.3%. In Florida, 53.9% of debtors are over 35, and in Nevada, the figure is 53.7%. This data reveals that in these states, a majority of student debt holders are older individuals who should already have an established career.
Several states stand out for having a relatively younger population of student debt holders. Massachusetts leads this group, with 61.5% of its student debt holders under 35. North Dakota follows closely with 60.8% of debtors under 35. In South Dakota, 58.2% of debtors are under this age threshold. Rhode Island has a similar profile, 58% under 35. New Jersey rounds out this group, with 57.7% of debtors under 35. These figures suggest that in these states, student debt is predominantly held by younger individuals, possibly recent graduates or those in the early stages of their careers.
Debt by Major
The total amount of debt tends to be larger for higher education, but can vary depending on the major. For an Associate’s degree, the major with the largest amount of debt is Alternative and Complementary Medicine and Medical Systems, with an average debt of $38,533. At the Bachelor’s level, Behavior Sciences has the highest average debt at $42,822. For a Master’s degree, Advanced/Graduate Dentistry and Oral Sciences has the most debt, averaging $158,155. At the Doctoral level, Pharmacy, Pharmaceutical Sciences, and Administration has the highest debt, with an average of $310,330.
The data highlights significant disparities in student debt across different states and academic majors. The District of Columbia leads in both average debt and the percentage of debts over $200,000, while California has the largest total student debt. Additionally, certain majors, particularly in the medical and pharmaceutical fields, are associated with higher levels of debt.
Our report underscores the varying impact that student debt has across different states and subjects in the U.S., primarily showing that what you study can make a huge difference to the amount of debt you are left with.
As we continue to see significant debt associated with certain majors, particularly in critical fields like pharmacy and dentistry. It’s clear that targeted financial planning is essential for students navigating academic paths likely to leave them with considerable student debt.
No one would want to scare students away from their dream career path, but colleges should be doing more to provide them with the tools and understanding to best manage this debt post-graduation.
Ideally, we would want to see those studying these subjects leave college, not just with their diplomas but also with the financial literacy to pay down the resulting debt early on in their careers.
Methodology
This study utilizes data sourced from the Education Data Initiative to analyze student debt trends across the United States. The methodology involves collecting and segmenting data on average debt by state, debt distribution by age group, total debt by state, and debt by academic major. A comparative analysis was performed to contrast states with varying percentages of debtors over the age of 35. The findings were interpreted and reported to provide insights into the financial burden of student debt across different states and academic disciplines.
