The resumption of federal student loan interest and payments in October has varied impacts across state lines. A recent WalletHub survey breaks down its findings.
09/20/2023 10:55 A.M.
2 minute read
The Biden administration’s student loan moratorium came to a halt on Sept. 1, 2023, as federal student loans began accruing interest again. Consequently, students will have to resume their monthly payments from October onwards.
The end of this student loan payments pause will affect students differently in various states. WalletHub conducted an in-depth analysis, comparing states and the District of Columbia across 12 key metrics, including average student loan debt per borrower, the share of state residents with student debt, and the percentage of student loan borrowers eligible for forgiveness.
The study highlighted that certain states, such as Pennsylvania, Mississippi and New Hampshire, are most affected by this change, whereas states like Hawaii, Nevada and Oregon experience comparatively lesser impact.
Other findings include:
- North Dakota has the lowest average student debt per borrower, $29,834, which is 1.8 times lower than in Washington, D.C., which has the highest at $54,863.
- Utah has the lowest portion of students with student debt, 39%, which is 1.9 times lower than in South Dakota, the state with the highest at 73%.
- Maine has the lowest student default rate, 0.38%, which is 5.6 times lower than Alaska, the state with the highest at 2.12%.
- Montana has the highest share of student loan borrowers eligible for forgiveness, 2.83%, which is 2.3 times higher than in Utah, the state with the lowest at 1.23%.
Furthermore, WalletHub’s 2023 Student Loan Moratorium Survey offers a glimpse into how Americans perceive and cope with student loan debt.
Key findings from the survey include:
- Taxpayer Fairness: 48% of people think the student loan moratorium was not fair to American taxpayers.
- Huge Help: More than 3 in 4 people with student loan debt say the student loan moratorium was helpful for them.
- Future Impact: 56% of people with student loan debt say the end of the student loan moratorium will affect their finances a lot.
- Uncertain Timeline: 1 in 3 Americans with student loan debt say they don’t know how long it will take them to pay off their student loans.
- Student Debt vs. Credit Card Debt: Nearly 2 in 4 people think student loan debt is more concerning than credit card debt.
- Fairness of Forgiveness: 3 in 5 Americans say it is fair for some people’s student loans to be forgiven.
For a detailed state-wise analysis and deeper insights into the sentiments of Americans regarding student loan debt, you can access WalletHub’s complete report and survey here.