Go ahead and call student loan debt a national crisis — just don’t forget that it affects some regions more than others.
Seven of the 10 metropolitan areas (cities and their surrounding areas) with the highest median loan balances are in the South, including locales in Georgia, Alabama, Louisiana and the Carolinas.
On the flip side, 9 of the 10 metro areas with the lowest median balances are west of the Mississippi River. With relatively lower debt, college graduates in Western states like California might have an easier time with repayment — especially if they received a degree for their troubles.
To understand exactly where the education debt burden weighs the heaviest, we studied the median balances in America’s 100 largest metros. Here’s what we found.
- Borrowers residing in Washington, D.C., carry the most student debt, with a median balance of $29,314. And 15% of those borrowers owe more than $100,000 — the highest percentage among the 100 metros under review.
- Atlanta and Charleston, S.C., have the second- and third-highest median balances, at $28,706 and $27,591, respectively.
- Besides D.C. and the seven Southern metros mentioned above, two Ohio urban centers round out the top 10 most indebted: Akron (4th) and Toledo (7th).
- McAllen, Texas, reported the lowest median debt, at just $13,641. Fresno, Calif., and Ogden, Utah, complete the bottom three with median balances of $16,160 and $17,331, respectively.
Places that owe the most in student loans
1. Washington, D.C.
Median balance: $29,314
Roughly half of the people over the age of 25 in the Washington, D.C., metro have a postsecondary degree — that’s significantly higher than the 28% of all Americans who’ve earned a bachelor’s or higher.
Even more significant: Nearly 1 out of 4 have professional or graduate degrees, more than double the national rate of 10.5%. This helps explain why Washington also has the highest percentage of student debt holders who owe more than $100,000.
But that doesn’t necessarily mean these borrowers are in financial crisis, as most completed their degrees and are earning accordingly. While 22% of Americans left college before finishing, the same is true for only 16.5% of those residing in and around the nation’s capital.
Median balance: $28,706
Atlanta is another highly educated city — 37% of Atlanta residents ages 25 and older have completed at least a four-year education, and nearly 14% have a graduate or professional degree, which is higher than the nation as a whole (10.5%).
However, that doesn’t completely explain why about 13% owe more than $100,000, well above the 8.7% average of the metros we reviewed. The area is home to a plethora of higher learning institutions, including the Georgia Institute of Technology, Georgia State University, Emory University, Morehouse College and Spelman College. Perhaps the need for so many professors helps to explain why Atlanta is more educated — and in more student debt — than the nation as a whole.
Unfortunately, 1 in 5 Atlanta residents left college before finishing a degree, which is in line with the rest of the country.
3. Charleston, S.C.
Median balance: $27,591
The first of two South Carolina metros among our top five overall, Charleston placed third by a narrow margin. Still, the average borrower here has 4.6 loans, more than any of the 99 other metros we studied.
More students going to college also equals more student loans overall: About 34% of the metro area’s population has at least a bachelor’s degree, trumping the national average of 28%.
4. Akron, Ohio
Median balance: $27,363
The first metro on our list north of the Mason-Dixon Line, Akron’s education rates mirror the nation’s — 31% of residents over the age of 25 have at least a bachelor’s, 11% have a graduate or professional degree, and just under 20% left school before completing a degree.
We found that 7.9% of residents Akron — a manufacturing hotspot and home to the University of Akron, among other schools — owe more than $100,000.
5. Columbia, S.C.
Median balance: $27,330
High balances brought Columbia into the top five of metros with the most education debt. About 45% of borrowers in the metro area had at least $50,000 in student debt — and more than 13% of were staring at a six-figure hole.
Interestingly, while the fellow Palmetto State cities of Columbia and Charleston ranked high on the list, Greenville, S.C., did much better, coming in at 39th overall for median education debt.
Places where student loan borrowers have the lowest balances
100. McAllen, Texas
Median balance: $13,641
There’s a pretty good reason why residents of McAllen don’t carry much student debt: Fewer of them pursue college study. Only about 13% of those 25 and older have a bachelor’s, and just 5% have a graduate degree.
Likewise, the number of people who have some college experience (18%) is about 4 percentage points less than the nation as a whole.
This all translates into a lighter debt loan for area residents. Only 5% of borrowers in McAllen owe more than $100,000, the lowest percentage among the metros we reviewed.
99. Fresno, Calif.
Median balance: $16,160
Only 13% of people age 25 and over in Fresno have a bachelor’s degree, while 7% have graduate and professional degrees.
Unfortunately, 23% have taken some college courses without attaining a degree, slightly above the 22% national figure. This means that despite the low balances — only 7.2% owe more than $100,000 — more Freso residents are in a tough position when it comes to repaying student loans.
98. Ogden, Utah
Median balance: $17,331
Utah ranks last among the states for average loan debt, at $18,838 per student, according to the Institute for College Access & Success, so it shouldn’t come as a surprise that Ogden and nearby Provo (86th) show up on the low-debt end of our list.
Ogden-based borrowers, however, might not be as equipped to repay their relatively smaller balances. About 28% of residents attend college but don’t earn a degree, some six percentage points above the national average.
97. Stockton, Calif.
Median balance: $17,373
The average borrower in Central California’s Stockton-Lodi metro area has 3.5 loans to repay. Lower rates of graduate and professional school enrollment — just 5.8% of residents earned a second degree — keep balances low, however.
Besides Fresno (99) and Stockton (97), San Jose (95), Bakersfield (94) and Oxnard (88) also reported low median education debt among the California metros.
96. Providence, R.I.
Median balance: $17,421
At the home of the Ivy League’s Brown University, 19% of people over the age of 25 have a bachelor’s, and 12% have graduate degrees. This is a bit higher than the nation as a whole, but generally in line.
We found that 18% have some college experience but no degree, which is about 4 points lower than the country as a whole.
How the top 100 metro areas compare on student loan balances
Have you found where your metro area landed on our top 100 list?
If you live in a part of the country especially burdened by student loan debt, let’s hope you’re the exception to the rule. Alternatively, if you live in a place that’s less affected by the crisis, hopefully you’re not an outlier.
As explained in our study identifying where students have the most debt, your outstanding balance can be indirectly tied to your location. Perhaps you borrowed to attend a better private school or needed an expensive graduate degree to gain footing in your region’s job market.
Whatever the case might be, having a degree helps you find the income to foot the bill for repayment.
Beyond banking on a salary, you could consider the benefits of a move. Relocating to a metro area that ranks higher on our list might offer some combination of a lower cost of living, fewer tax burdens and greater access to state-run repayment assistance programs.
Still, your location is less important when it comes to loan-management strategies. It doesn’t matter where you live if you’re thinking of enrolling in income-driven repayment, for example, or reducing your interest rate via student loan refinancing.
What does matter is that you take the steps necessary to end your debt, regardless of where you reside.
Interested in refinancing student loans?Here are the top 6 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
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|3.18% – 6.07%5||Undergrad & Graduate|
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1 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of June 23, 2020. Information and rates are subject to change without notice.
2 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Splash Financial loans are available through arrangements with lending partners. Your loan application will be submitted to the lending partner and be evaluated at their sole discretion. For loans where a credit union is the lender, or a purchaser of the loan, in order to refinance your loans, you will need to become a credit union member.
The Splash Student Loan Refinance Program is not offered or endorsed by any college or university. Neither Splash Financial nor the lending partner are affiliated with or endorse any college or university listed on this website.
You should review the benefits of your federal student loan; it may offer specific benefits that a private refinance/consolidation loan may not offer. If you work in the public sector, are in the military or taking advantage of a federal department of relief program, such as income based repayment or public service forgiveness, you may not want to refinance, as these benefits do not transfer to private refinance/consolidation loans.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of May 1, 2020.
Fixed APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rate options range from 2.88% (without autopay) to 7.27% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Rates are subject to change without notice. Fixed rate options without an autopay discount consist of a range from 2.88% per year to 6.21% per year for a 5-year term, 3.40% per year to 6.25% per year for a 7-year term, 3.45% to 5.08% for a 8-year term, 3.89% per year to 6.65% per year for a 10-year term, 4.18% per year to 5.11% per year for a 12-year term, 4.20% per year to 7.05% per year for a 15-year term, or 4.51% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan).
Variable APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Variable rate options range from 1.99% (with autopay) to 7.10% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Our lowest rate option is shown with a 0.25% autopay discount. Our highest rate option does not include an autopay discount. The variable rates are based on the Variable rate index, is based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 27, 2020, the one-month LIBOR rate is 0.43763%. The interest rate on a variable rate loan is comprised of an index and margin added together. The margin is a fixed amount (disclosed at the time of your loan application) added each month to the index to determine the next month’s variable rate. Variable rate options without an autopay discount consist of a range from 2.01% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 2.09% per year to 3.92% per year for a 8-year term, 4.25% per year to 6.40% per year for a 10-year term, 2.67% per year to 4.56% per year for a 12-year term, 3.44% per year to 6.65% per year for a 15-year term, 4.75% per year to 6.93% per year for a 20-year term, or 5.14% per year to 7.10% for a 25-year term, with no origination fees. APR is subject to increase after consummation. Variable interest rates will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. The maximum variable rate may be between 9.00% and 16.00%, depending on loan term. The floor rate may be between 0.54% and 4.21%, depending on loan term. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
3 Important Disclosures for SoFi.
4 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.19% APR (with Auto Pay) to 6.43% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 6.43% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of June 15, 2020, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 6/15/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.19% effective June 10, 2020.