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Breaking News: Student Loan Debt is a Growing Crisis!
As we approach 2026, student loan debt remains a significant financial burden for graduates. The challenge of managing student debt continues to loom large for many individuals as they navigate their early careers.
In the United States, total student loan debt has now surpassed a staggering $1.73 trillion. This represents a substantial increase and highlights the ongoing issues students face in financing their education.
Currently, over 45 million Americans are grappling with student debt, with the average student loan debt for the Class of 2021 reaching approximately $40,000. These alarming statistics prompt us to explore the sources of this debt and its impact on graduates.
To shed light on this issue, we analyzed the most recent College Scorecard Data from the Department of Education to identify the states with the highest median student debt for graduates.
Summary of Findings
- North Carolina ranks high in student debt, with eight of its colleges among the top 50 for median debt.
- South Carolina has the highest average median debt in the country, with six institutions in the top 50.
- Both Georgia and Alabama have five colleges each featured in the top 50.
- Utah stands out for having the lowest average median debt among states.
- The average median debt across states is approximately $23,500.
- 19 of the top 30 schools for median debt are historically Black colleges and universities (HBCUs).
HBCUs
Graduates from HBCUs face a disproportionately high student loan burden compared to their peers from non-HBCUs.
A report from the United Negro College Fund highlighted that 85% of HBCU students utilized federal loans to finance their education, compared to 60% of non-HBCU students. Furthermore, the percentage of HBCU graduates borrowing $40,000 or more is significantly higher than that of non-HBCU graduates.
Many HBCU students come from low-income backgrounds and are often the first in their families to attend college, leading to a greater reliance on loans to pursue higher education. To address this challenge, experts advocate for simplifying the federal loan process and increasing grant availability for HBCU students.
South Carolina
South Carolina, particularly Richland County, grapples with a significant student loan crisis.
Benedict College and Allen University, two institutions on the top 50 list, alongside the University of South Carolina, are located in Columbia.
A recent study from the Urban Institute found that 27% of residents in Richland County are burdened with student debt, surpassing the national average.
To combat this issue, South Carolina’s Commission on Higher Education has introduced a Student Bill of Rights aimed at making college more affordable.
Pennsylvania
The student debt crisis in Pennsylvania is driving millennials to leave the state in search of lower living costs.
Counties such as Erie, Lackawanna, Mercer, and Allegheny report higher-than-average student debt levels among their populations.
North Carolina
Similar to South Carolina, North Carolina faces its own student debt challenges.
Four of the six colleges in the state that rank in the top 30 for median debt are HBCUs, underscoring the financial difficulties faced by these graduates.
How We Conducted This Study
Our analysis used the Department of Education’s College Scorecard Data.
We focused on predominantly bachelor-degree granting universities, excluding community colleges and for-profit institutions to ensure a fair comparison. Notably, including for-profit schools like DeVry University, which is known for high debt levels, would skew results.
When interpreting the first graph, keep in mind that the average median student debt by state reflects an average of the medians from colleges within that state, rather than a statewide median. This data represents the median debt for students who completed their degrees, providing a clearer picture of the burden faced by graduates.
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Author
McLeod Brown is a former writer and researcher for the Zippia Career Advice blog. His work at Zippia focused on understanding the relationship between colleges, debt, and jobs. A graduate of the University of North Carolina at Wilmington with a BA in Business Administrator, he is now pursuing a masters of science in analytics from the Institute of Advanced Analytics.
