(The Center Square) – As thousands of Kentuckians head back to school at colleges and universities across the commonwealth in the coming weeks, a new study finds the state is among those most affected by student loan debt.
WalletHub, which offers consumers information to better handle their personal finances, used a dozen metrics from the 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. Kentucky finished 11th 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.
The study found Kentucky’s average student loan debt was $28,356. That was 29th nationally. However, 61% of the state’s college students have loans. Only 10 states have a higher percentage of students taking on debt. Further, that debt equals 49.8% of the borrower’s income, the fifth-worst ratio in the country.
Andrea Lee Negroni, an adjunct associate professor of law at American University’s Washington College of Law, urged students considering loans to apply for other forms of financial aid to offset the cost.
“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.”
Jobs may be a little harder to find for recent graduates in Kentucky. The study found the state’s unemployment rate for adults 25 to 34 was 4.4%, which was also the 11th highest in the U.S.
Two of Kentucky’s neighbors are affected more by student debt. West Virginia came in fourth in the study, while Ohio was sixth. Indiana finished 20th, Tennessee 23rd, Illinois 27th, Missouri 29th and Virginia 37th.
Pennsylvania is most affected by student loan debt, while Utah is the least impacted.
Andrew Waldum, an associate professor at the University of Arizona’s Norton School of Human Ecology, said students may want to consider attending a community college before moving on to a larger university. Still, he added anyone doing that must find out more before proceeding.
“Tuition and fee charges are typically much lower (and scholarships for academics and sports can be found),” he said. “I would encourage the student, however, to meet with both academic advisers at the community college and the four-year university that they wish to attend to ensure that all classes will transfer.”
