States with the Most and Least Student Debt (2026)

Student debt is a major financial burden in America. Aside from mortgages, student loans represent the largest share of household debt, and the total continues to rise. At the end of the second quarter of 2026, outstanding student loan balances exceeded $1.72 trillion, according to the Department of Education. That amounts to more than $40,000 per borrower across 42.6 million Americans.

The burden of student debt varies significantly from state to state. To identify where borrowers face the greatest challenges, WalletHub compared the 50 states and the District of Columbia across 12 key measures of student-loan indebtedness and economic opportunity. The data set includes factors such as average student debt, the unemployment rate among adults ages 25 to 34, and the share of borrowers with past-due loan balances.

States With the Most Student Debt

1. Mississippi
2. Delaware
3. Pennsylvania
4. South Carolina
5. West Virginia

States With the Least Student Debt

47. New Mexico
48. Washington
49. California
50. Hawaii
51. Utah

If you’re considering going into debt for college or you’ve already taken out loans, we advise using a Student Loan Calculator to determine an affordable monthly payment and payoff timeline.

Main Findings

Student Debt by State

Notes: *No. 1 = Most Student Debt

With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the worst conditions for that metric category.

In-Depth Look at the States With the Most Student Debt

Mississippi

Mississippi has the biggest student debt problem in the country. The average amount owed by people with student loan debt equals over 54% of the median income in the state, the highest rate in the U.S. In addition, Mississippi has the highest default rate on student debt, which shows that people are having trouble paying off what they borrow.

One reason why student borrowers are struggling in Mississippi is that they are having a hard time finding jobs. Mississippi has the third-worst availability of jobs to students, and the second-lowest share of paid internships.

Mississippi also does not have a state student loan ombudsman law (which would create a position to resolve complaints regarding loans).

Delaware

Delaware has the second-biggest student loan debt problem. Borrowers owe an average of close to $40,000, the second-highest amount in the country. In addition, the average amount owed by people with student debt in Delaware is over 39% of the median income in the state, and 60% of students have student loans.

In addition, jobs don’t come easily to students in Delaware. The state has the eighth-worst availability of student jobs and the sixth-highest underemployment rate (rate of workers who are part-time employed or unemployed).

Like the other states with the biggest student loan problems, Delaware lacks a student loan ombudsman law.

Pennsylvania

Pennsylvania ranks third among the states struggling the most with student debt. It has the third-highest average student debt, at over $39,000. The average Pennsylvanian with student loan debt owes just under half (43%) of the median income in the state, the fifth-highest rate in the country.

On top of the high average student loan debt, there are also a lot of people borrowing. Around 64% of students in Pennsylvania have student loan debt, the fourth-highest percentage.

Like the other states with the biggest student loan problems, Pennsylvania lacks a student loan ombudsman law.

The methodology can be found on the full version of the article on WalletHub.