California leads the US in student debt, new study says. How much do residents owe?
California leads the nation in terms of total student loan debt, according to a new study by The Kaplan Group.
The commercial collection agency looked at data for all 50 states in the United States — plus the District of Columbia — to determine which places struggle the most with student debt.
California was No. 1 on the list of the U.S. spots with the most student debt overall, totaling $146.7 billion.
The District of Columbia had the highest average student debt in the nation, with residents owing $53,782 on average.
Here’s how California compared:
How bad is student debt in California?
On average, Californians owe $36,891 in student debt, according to the Kaplan Group study, which was published Aug. 28.
About 2.9% of student debts in California exceed $200,000, the study found.
The Golden State has more than 3.9 million student borrowers, the Kaplan Group said, and 51% of those are under the age of 35.
Why is student debt so high in California?
According to one economics expert, a variety of factors make California a high-debt state, including expensive student housing.
“A big portion of the student debt goes towards things like room and board,” said Derek Stimel, associate economics professor at University of California, Davis. “Whether they’re living on campus or off campus, frankly, it doesn’t really make too much difference.”
He noted that students struggle to find affordable housing due to the high demand for places to live.
California also has a high cost of living compared to other states, which means salaries don’t stretch quite as far to cover costs.
“(If) there’s no money from the parents to basically pay for college, the student has no choice but to basically take out these loans,” he said.
Stimel said the problem could be compounded by state programs aimed at getting more students into higher education.
“There’s a big push in California for people to go to college,” he said. “That’s good, but that could also fuel some of this debt issue.”
Which U.S. states have the most student debt?
These states have the highest total student debt in the United States, according to the Kaplan Group:
- California: $146.7 billion
- Texas: $125.7 billion
- Florida: $103.3 billion
- New York: $93.3 billion
- Georgia: $69 billion
The following states and districts had the highest average student debt in the nation, the study found:
- District of Columbia: $53,782
- Maryland: $42,280
- Georgia: $40,804
- Virginia: $38,900:
- Florida: $38,065
Which places have the most student debtors over 35?
The average age of folks with student debts tends to vary depending on where they live, the Kaplan Group found.
The following states have the most student debt holders over the age of 35, according to the study:
- New Mexico: 57.9% of debtors
- Oregon: 54.8%
- Oklahoma: 54.3%
- Florida: 53.9%
- Nevada: 53.7%.
These states have the most student debtors under 35, the Kaplan said:
- Massachusetts: 61.5% of debtors
- North Dakota: 60.8%
- South Dakota: 58.2%
- Rhode Island 58%
- New Jersey: 57.7%
Which majors will leave you with the most debt?
The amount of student debt you acquire can depend on your academic major, according to the Kaplan Group.
According to the study, students who pursue an associate degree in alternative and complementary medicine or medical systems incur the most debt on average: $38,533.
A bachelor’s degree in behavior sciences will leave you with $42,822 in student debt on average, the study found, while a master’s degree of advanced dentistry and oral sciences will result in an average of $158,155 in student debt.
At the doctoral level, a doctorate degree in pharmacy, pharmaceutical sciences and administration comes with an average of $310,330 in student debt.
How did the study get the results?
The Kaplan Group used data sourced from the Education Data Initiative in order to analyze student debt trends across the United States.
The study looked at factors such as:
- Average debt by state
- Debt distribution by age group
- Total debt by state
- Debt by academic major
This story was originally published September 13, 2024 at 1:19 PM with the headline "California leads the US in student debt, new study says. How much do residents owe?."