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Georgia Ranks Second in U.S. for Highest Student Loan Debt Per Borrower

5 Star Car Title Loans

Monday, August 26th, 2024

Key Findings: 
  • Maryland leads the nation with an average student debt of $43,116 per borrower, totaling $36.7 billion across 851,200 borrowers
  • Georgia follows closely at #2, with students owing an average of $41,775, amounting to a staggering $70.6 billion in total debt
  • Rising tuition costs, high living expenses, and limited state funding contribute to the growing student debt crisis

As students across the nation prepare for the upcoming college year, a recent analysis of federal student loan data has unveiled the top five U.S. states where students are burdened with the highest average debt loads. 

The study, conducted by financial services provider 5 Star Car Title Loans (https://5starloans.com/ ), gathered data on total student debt per state and the number of borrowers, to calculate the average debt per student. This approach revealed a concerning trend of escalating education costs and their long-term financial impact on students.

Using data from the Federal Student Loan Portfolio, the study identified the states where borrowers face the most substantial student loan debts. The findings paint a stark picture of the financial challenges facing today's and tomorrow's college graduates, with some states' students shouldering significantly heavier debts than others.

5 Star Car Title Loans’ Study

The five states with the highest average student loan debt per borrower are as follows:

Rank
U.S. State
Total student debt (in billions USD)
Number of borrowers
Average student debt burden (in USD)
1
Maryland
$36.7bn
851,200
$43,116
2
Georgia
$70.6bn
1,690,000
$41,775
3
Virginia
$43.8bn
1,106,100
$39,599
4
Florida
$105.4bn
2,724,700
$38,683
5
South Carolina
$29.1bn
758,600
$38,360
 
Crystal Voogd, a spokesperson for 5 Star Car Title Loans, breaks down why each state made it into the top five.
 
Maryland
 
Maryland tops the list with an average debt of $43,116 per borrower, totaling $36.7 billion across 851,200 borrowers. 
 
“Despite being a relatively wealthy state, Maryland has faced challenges in adequately funding its public higher education institutions,” Crystal says. “Limited state funding, particularly in education, means that universities may need to rely more on tuition revenue to cover their operating costs, resulting in higher tuition rates for students.”
 
Georgia
 
Georgia ranks second in the list, with an average debt of $41,775 per borrower, amounting to a colossal $70.6 billion in total debt held by 1,690,000 borrowers.
 
Crystal notes, “The state's large student population, coupled with rising tuition costs and limited state funding for public universities, has created a perfect storm for debt accumulation. It could be that students in Georgia are paying off their debts more slowly."
 
Virginia
 
Virginia ranks third, with an average debt of $39,599 per borrower, totaling $43.8 billion across 1,106,100 borrowers. The state's high cost of living, particularly in Northern Virginia, contributes significantly to student debt levels. 
 
Crystal explains: "Virginia's proximity to Washington D.C. drives up living costs in parts of the state. Students attending colleges in these expensive areas often face additional financial strain, leading to higher levels of borrowing to cover not just tuition, but also housing and other living expenses."
 
Florida
 
Florida, with its sun-drenched campuses and bustling student life, finds itself in the fourth spot. Despite its allure, the state's students face an average debt of $38,683, contributing to a staggering total debt of $105.4 billion spread across 2,724,700 borrowers.
 
“Florida's diverse economy and influx of out-of-state students seeking warmer climates and renowned academic programs contribute to its high debt levels,” Crystal says.
 
South Carolina
 
South Carolina makes it into the top five with an average debt of $38,360 per borrower, accumulating to $29.1 billion collectively owed by 758,600 borrowers.
 
“South Carolina's reliance on private student loans and limited state aid for higher education further exacerbate the debt crisis,” says Crystal.
 
Reasons for High Debt Levels

The study highlights several factors contributing to these high debt levels. Crystal explains some of these factors:

Rising Tuition Costs: “Over the past decade, college tuition has increased at rates far outpacing inflation. This trend has forced students to rely more heavily on loans to finance their education.”

High Living Expenses: “Many of the states on this list, particularly Maryland and Virginia, have areas with high costs of living. Students in these regions often need to borrow additional funds to cover housing, food, and other essential expenses.”

Limited State Funding: “Declining state support for public higher education institutions has shifted more of the financial burden onto students and their families. This has resulted in higher tuition rates and increased reliance on student loans.”

Economic Challenges: “Recent economic downturns and job market uncertainties have made it difficult for many graduates to secure well-paying jobs, hindering their ability to repay loans promptly.”

Crystal Voogd, a spokesperson for 5 Star Car Title Loans, commented: 

"While the Biden administration has made strides in addressing the student debt crisis, canceling approximately 9.5 percent of all federal U.S. student debt, the stark reality is that the total outstanding student debt still stands at a staggering $1.75 trillion. This astronomical figure underscores the depth of the crisis, even after recent relief efforts. 

“Despite these measures, millions of students and graduates continue to struggle under the weight of their loans. To truly tackle this issue, we need to consider more comprehensive approaches, such as expanding income-driven repayment plans, increasing federal and state funding for public universities to curb tuition hikes, and implementing financial literacy programs to help students make informed borrowing decisions."