(The Center Square) – When it comes to student loan debt, a new study finds Indiana nearly in the middle of the pack nationally.
WalletHub used a dozen metrics from the U.S. Census Bureau, Federal Reserve Bank of New York, the U.S. Department of Education and other groups to determine what states are impacted the most by student debt, and Indiana ranked 20th out of the 50 states and the District of Columbia.
Department of Education data shows the nation’s student loan debt equaled almost $1.64 trillion after the first quarter of 2023. With 43.8 million Americans having loans, the average amount owed is $37,000.
Befitting of a near-middle rank, the study found Indiana did not rank very high or low in any of the statistics. The best showing was its underemployment rate, which at 5.7% was the 16th lowest among the states.
Indiana’s worst metric was its share of loans past due or in default. At 1.02%, the state ranked 40th nationally.
The average debt owed of $28,521 was 28th in the survey, while 57% of students carry debt, 21st among the states. On average, Hoosiers with student loans have debts that equal 40.9% of their annual income. That’s 18th lowest among the states.
Jeffrey J. Williams, a professor of English and literary and cultural studies at Carnegie Mellon University, said loans help reduce inequality in educational attainment. However, that has come at a cost.
“It has been clear for at least two decades that it has impeded two generations and counting, causing them to put off getting married, having families, buying houses, etc.,” Williams said. “It compounds the other expenses they have.”
That may not necessarily be the case for Hoosier borrowers. While Indiana ranked 20th overall in the student debt study, it also ranked 10th nationally in home ownership for people aged 25 to 34.
Three of Indiana’s neighbors are affected more by student loan debt. WalletHub ranked Ohio sixth, Kentucky 11th and Michigan 13th.
Illinois came in 27th.
The study found Pennsylvania as the state most affected by student debt, while Utah was the least impacted.
Andrea Lee Negroni, an adjunct associate professor of law at American University’s Washington College of Law, urged students considering loans to consider applying for other forms of financial aid to offset the cost or raising some of the money on their own.
“Do not shy away from opportunities to work while studying,” Negroni said. “Part-time jobs abound at and near universities during breaks and in the summer. Those serious about education may have to work to pay for it. Be willing to invest in yourself.”
