The Institute for College Access & Success (TICAS) released its 16th Annual Student Debt Report, which covers the average 2020 graduate debt by state. The report highlights the average disparity in debt between the western and northeastern states, with the former tending towards lower student debt ratios and lower debt amounts on average. This week’s trend may not have a direct impact on current student loans, but it could impact future policies.
1 current trend in student loans for the week of November 29, 2021
1. Data Show Class of 2020 Graduates from Western and Mountain States Likely to Have Less Student Debt than Their Northeastern State Counterparts
TICAS has published its 2021 report on student debt. Data in the report shows averages ranging from $ 18,350 in Utah to just under $ 40,000 in New Hampshire. The likelihood of a cohort of 2020 graduates being in debt is also highly variable. Utah is again at the low end with 39%, while the high end is 73% in South Dakota.
To get a good idea of the geographic distribution of debt, here are the top five states with the highest and lowest average student loan debt:
- Highly indebted states: New Hampshire ($ 39,928), Delaware ($ 39,705), Pennsylvania ($ 39,375), Rhode Island ($ 36,791) and Connecticut ($ 35,853).
- States with little debt: Utah ($ 18,344), New Mexico ($ 20,868), California ($ 21,125), Nevada ($ 21,357) and Wyoming ($ 23,510).
Student debt is lower at public universities and colleges than at private non-profit and for-profit colleges, the report says, but that doesn’t mean the number of graduates with debt is a low number. Data shows that 75 percent of participating public institutions said more than 50 percent of students graduated with student debt, and 17 percent said more than 75 percent of graduates left with student debt. ready.
The report draws on reports from college volunteers and covers 80 percent of 2020 graduates. Averages do not include for-profit colleges and universities due to lack of data on debt reported by these institutions.
How it affects student loans
With high levels of income loss and continued economic uncertainty, TICAS recommends that federal protection be extended to borrowers when COVID-19 emergency benefits end on January 31, 2022. It also recommends an increase in aid in needs and calls for better protection of borrowers with private student debt. At the institutional level, TICAS makes several recommendations regarding advice and promotion of existing programs that can help students find help.
Key to take away
TICAS data highlights disparities in student loan debt between states and demonstrates the need to protect borrowers.
Here’s how to prepare
Whether you are new to the area of student loans or are already in advanced repayment, it is wise to stay on top of how your student loan rates might change. As 2021 continues, more opportunities for cheaper loans or loan cancellations may open up; Keep an eye on the Bankrate student loan news center for the latest trends.