Imagine a stack of $1 bills that extends more than 111,000 miles into the sky. That’s almost half the distance from the Earth to the moon. And it gives you a visual picture of just how much federal student loan debt Americans owe.
The total as of June 30, 2023, stood at nearly $1.64 trillion, according to the U.S. Department of Education Office of Federal Student Aid. However, the amount of unpaid student loans remaining unpaid varies considerably based on location. Borrowers in the following states owe the most in student loan debt.
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1. California
More than 9% of total U.S. federal student debt stems from one state — California. That shouldn’t be too surprising, considering that California is the most populated state in the country.
Nearly 4 million borrowers in the Golden State collectively owe $149 billion in federal student loans. The biggest age demographic represented in this group is individuals between the ages of 25 and 34, with around 1.5 million borrowers owing a combined federal student loan debt of nearly $49 billion.
2. Texas
Texas is the second-largest state, based on population. It makes sense, therefore, that it also comes in at No. 2 on the list of states with the highest student loan debt.
The Lonestar State has over 3.8 million student loan borrowers with outstanding balances, nearly as many as California. However, the combined amount owed of $127.2 billion is well below the top-ranked state’s level.
3. Florida
There’s also no surprise with the No. 3 state on the list. Florida claims the nation’s third-largest population. Its more than 2.7 million borrowers together owe $105.4 billion on their student loans.
Individuals between the ages of 35 and 49 make up the biggest group of student loan borrowers in Florida. They also owe the most — a combined $43.2 billion.
4. New York
It’s the same song but a different verse with the next state. New York ranks as the fourth-largest state, based on population, and is fourth in the total amount of student loan debt owed.
New Yorkers’ aggregate balance of federal student loan debt totals $94.9 billion. This amount is spread across nearly 2.5 million borrowers. The 25-to-34 demographic group includes the most New Yorkers with unpaid student loans (around 907,000). Together, they owe $33.7 billion.
5. Georgia
Pennsylvania, Illinois, and Ohio have larger populations than Georgia. However, Georgia vaulted past all three to take the No. 5 spot on the list of states with the greatest federal student loan debt.
Nearly 1.7 million Georgians collectively owe $70.6 billion on their federal student loans. What’s especially notable about the state is that roughly 1 in 10 of these borrowers have federal student loan balances of $100,000 or more.
Looking at the averages
The ranking of the states changes quite a bit, though, if we look at the average federal student loan debt per borrower. California, Texas, and New York don’t even crack the top 10.
The District of Columbia takes the No. 1 spot, with an average federal student loan debt of nearly $54,350 per borrower. Nearby Maryland comes in second place with an average student loan debt of over $43,100 per borrower.
Georgia claims the No. 4 position. Borrowers in the Peach State owe an average of nearly $41,800 on their federal student loans. Florida also snagged a spot in the top five, with its average federal student loan debt per borrower topping $38,680.
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