These states have the highest average payments for student loans, new report finds

While getting a college degree is still considered a mostly positive investment in a person’s future, it’s not exactly free.

By the numbers:

Approximately 42.6 million Americans collectively owe $1.72 trillion in student loan debt, which translates to an average debt of roughly $40,500 per borrower, according to WalletHub.

The study highlighted significant regional differences, noting a nearly $99 gap between the states with the highest and lowest median payments.

WalletHub analyzed used financial data to determine and compare the median monthly student loan payments across all 50 U.S. states. 

Here are the states with people who pay the most and the least toward student loan debt. 

Map: States that pay the most on average toward student loan payments

Vermont residents pay the most on average

Dig deeper:

States in the Northeast dominated the top of the rankings for the highest median student loan payments. Vermont leads the country with a median payment of $250, followed by Maryland at $249, New Hampshire (also $249), and Connecticut ($247). 

Other states with notably high monthly loan payments included New Jersey, New York, Illinois, and California, all featuring median payments well above $235.

The other side:

Conversely, states in the South, Midwest, and West tended to have significantly lower median monthly payments. 

Wyoming ranks lowest in the nation at $160 per month on average, and tied with Arkansas (also $160). Just above those two states were North Dakota at $161 on average, then Kentucky($162) and West Virginia at $165.

What they’re saying: 

Even at the lower end of the spectrum, these figures contribute to prolonged repayment timelines; assuming an average balance of nearly $40,500 at a standard 6.52% federal fixed rate, borrowers would actually need to pay around $302 per month to clear their debt within 20 years, according to WalletHub analyst Chip Lupo.

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