A consumer spending website, ValuePenguin, issues a recent report that elucidates upon which states have the most student debt. This report exclusively shed light upon the fifteen states of the Unites States of America where the student loans debt has increased profoundly since the last decade. The report also claims that the student loan has exacerbated up to $1.4 trillion from 2004 to 2014 in collective debt.
Statistical data
As a result, during this decade, these countries of US has seen a 90% increase in student loan borrowers. Therefore, at average, each student loan borrower owes at least $26,700 countrywide, and in some places, the former students owe even more.
By using the statistics from the Institute for College Access and Success, the Value Penguin site ranked each state of the United States, in terms of average amount of debt that is held by the graduates of the educational institutions.
Which states have the most student loan debt
So, the highest percentage of student loan debt is held in Winston which is 70% of the graduates and each one of them owes on average, $29,460. Other states which have the most student loan debt include, Pennsylvania and New Hampshire as they have the highest percentage of graduates between 70 to 76% who owe considerably to federal and private lenders. While the rest of the states have less than 70% of the graduates who owe student loan debt. Nevertheless, these 15 states do come under the important notice as to which states have the most student debt.
States that have the low student loan debt include Arizona, Nevada, Mexico, Utah and California
Student loan debt is next to mortgages
Make lemonade is a customized, personal finance website. This website put forth the idea that student loan debt is increasing to unprecedented levels. The increase is evident in the fact that it is making its place, second to the highest consumer debt category that are mortgagees and are getting evn higher than credit card debts.
Mark lemonade also provide alarming statistics regarding the money students owe to the finance authorities for their studies. The website claims at on average, there are 44 million student loan debtors who collectively owe $1.5 trillion to these authorities who provides loans to pay tution fees or carry out other study related activities.
The website also claims that from 2016 to 2017, the student loan debt on average has increased from $37,000 to $40,000 per student.
Certain policies are recommended to address the problem of student loan debt
Those states that have the highest amount of student loan debt need to get aware by certain policies and recommendations. First of all the student needs to demonstrate his financial need and he need to become eligible for a student loan. Students need to receive counseling on the types of loans they can apply that include federal or private loans. Moreover, the students need to carefully understand both the cost of their loans and the repayment. In this way, students can make budgets for themselves so that they do not need to ask for more loans in future.
The government authorities regarding which states have the most student loan debt, need to participate in reducing the student loans. They need to collaborate with universities which have high tuition fees. These high fees compel the students to opt for student loans and increase their debt over time. If the college fees are reduced, then student loan debt would reduce.
In addition to reducing college fees, such policies should be introduced which ensure that student loan repayment at federal level is just and practicable for the students. Colleges who receive funding through federal means should increase their accountability to the federal government. This will help to deal with high student loan debt in states of US. Most importantly, financial assistance to undergraduate students through US federal government funding, Pell Grants should be strengthened.
Conclusion
So, researches and reports by various websites and news-feeds show which states have the most student debt in USA. These websites provide us with evidences that are enough for the government to take counter action.The federal lending authorities need to counsel the students regarding their loan program and financial aid applications. This will help high loan debt in US States to become reduced.
