According to the Federal Reserve, there are about 1.8 trillion student debt in the US as of November 2022. The states with the highest student debt includes Florida and Texas.
Almost $102 billion of student debt is owed by borrowers living in Florida. According to United States Department of Education data, there are around 2.64 million residents in the state with student debt. Compared to Texas, Florida has the lowest number of student loan borrowers.
Three of the country's most populous states have student debt of over $100 billion. New York is the lowest student debt state, with about $93.6 billion in loans outstanding for 2.4 million borrowers as of June.
There was a total of $1.74 trillion in student debt as of the third quarter of 2021, which is about $29.4 billion more than the previous year. In the same period, student loan borrowers experienced a gain of around $23.4 billion. Federal data shows that some quarters saw substantial decreases in overall student debt.
The student debt and the number of people in each state with it are reported in quarterly reports by the government. The data will be released in 2023 for the fourth quarter.
The average student debt in the US continues to increase due to the rising cost of tuition. Despite President Joe Biden's efforts to create new relief plans and forgiveness programs, these have been delayed due to court battles.
A study conducted by MyCreditSummit.com revealed that after graduating, average student borrowers have around $40,000 in student loan debt. The report noted that the average monthly payment on these loans is around $460. It also said that tuition prices are expected to continue rising.
According to My Credit Summit, student debt is the second-largest component of household debt in the US. It is also the fastest-growing.
Despite the various economic obstacles that have been presented to the country, household debt in the US is still on an upward trend.
In 2022, the Federal Reserve reported that household debt increased by $351 billion during the third quarter. It was the biggest quarterly increase since 2007. The central bank also noted that mortgage debt, which had been historically high during the previous two years, was at around $633 billion during the third quarter.
A separate report released by the federal government showed that student debt had experienced a significant increase in its delinquency rate, though the rate for other types of debt was lower. Delinquent payments on student loans had been decreasing due to the continued repayment moratorium.