How Iowa’s Student Debt Crisis Compares to Other States

The Biden Administration’s recent announcement regarding student debt relief thrust the topic into the forefront of the news. Under the program, students awarded Pell Grants and who took out loans from the Department of Education will have $20,000 of debt canceled. Those without a Pell Grant will have $10,000 shaved off their outstanding balances.

According to the Department of Education, federal student loans currently total $1.6 trillion. All told, an estimated 45 million borrowers hold federal student loan debt. The average student loan debt among borrowers stands at $36,200. (These are the most expensive states to get a college education.)

Burdened by that much debt, many college graduates are not always able to keep up with monthly payments, but the numbers vary by state. In Iowa, an estimated 458,500 people have outstanding student loan debt, and of them, 6.7% are at least 90 days past due on payments, compared to 7.5% of borrowers nationwide.

The average outstanding balance among borrowers in Iowa of $29,900 is lower than the national average and the third lowest among states.

All data in this story is from the Federal Reserve Bank of New York and is current as of 2021.

RankStateBorrowers with 90+ days of past due payments (%)Average outstanding student loan balance ($)Number of borrowers1Mississippi10.837,500417,6002West Virginia10.032,500215,9003New Mexico9.834,400217,7004Nevada9.635,800346,2005Oklahoma9.532,100474,1006Alabama9.437,500614,9007Kentucky9.433,400586,0008South Carolina9.237,200748,8009Georgia9.141,6001,639,60010Tennessee9.036,200867,80011Louisiana9.035,000639,30012Indiana9.032,900926,50013Arkansas9.032,400373,90014Texas8.433,1003,753,30015Arizona8.336,300870,10016Ohio8.335,0001,812,20017Oregon8.237,900552,10018Florida8.138,7002,665,40019North Carolina8.137,2001,349,10020Michigan8.136,5001,430,10021Missouri8.135,400836,20022Alaska7.933,90070,60023Kansas7.733,000391,80024Hawaii7.435,700126,50025Delaware7.137,200135,30026Pennsylvania7.135,4002,040,20027California7.037,7004,008,40028Maryland6.843,200874,00029Wyoming6.830,80056,50030Virginia6.738,5001,148,90031Illinois6.738,0001,704,80032Montana6.732,800132,70033Iowa6.729,900458,50034Colorado6.636,800818,80035Rhode Island6.533,100156,60036Connecticut6.436,300542,30037Idaho6.434,000223,80038Maine6.333,300202,70039Wisconsin6.231,200784,50040Washington6.135,900835,40041New Jersey5.936,8001,342,20042Utah5.933,100324,20043Minnesota5.632,700884,40044Vermont5.435,10090,70045Nebraska5.431,900263,20046Massachusetts5.335,1001,037,90047New Hampshire5.334,700221,60048South Dakota5.229,800132,00049North Dakota5.228,500114,10050New York4.838,2002,592,900

Free News Delivery by Email

Would you like to have the day's news stories delivered right to your inbox every evening? Enter your email below to start!

Leave a Reply

Your email address will not be published.