Aside from mortgages, student loans make up the largest portion of household debt for Americans, ballooning to a jaw-dropping $1.41 trillion 2018.
A new ranking by WalletHub shows that some states do a worse job than others at providing an environment that enables residents to cope with their student loans.
WalletHub compared the 50 states and Washington, D.C., across 11 key measures, including average student debt, the percentage of students in debt, availability of student jobs and default rates. The states were then ranked in terms of how good an environment they offer for those with student debt.
Success after college ultimately depends on a number of factors, including where a graduate decides to settle, according to WalletHub. Student-loan borrowers usually fare better in states with a strong economy, a thriving workforce and a low college-debt-to-income ratio, according to WalletHub.
Students should be strategic when choosing where they will put their degrees to work, according to a recent report from WalletHub. For example, recent grads could find higher salaries in certain roles in New York City, but not without enduring the extremely high cost of living. These expenses could deplete most of the benefits of having a higher salary, according to the report.
According to a quarterly report from the New York Federal Reserve Bank, 10.7 percent of all student-loan debts are in 90 or more days delinquent or are in default as of Q1 2018.
The following states, according to WalletHub, are the worse places for those with student debt:
10. Indiana
The state ranked 10th in terms of overall student indebtedness, which included the percent of students with student debt, debt as a share of income and the average student debt of state residents.
9. Iowa
Not only is the cost of debt from a degree at a public university higher than averages in most of the country ($27,313) , private education costs have also began to surge in Iowa. Graduates from private schools have an average of $33,878 in debt, up more than $5,000 from 2010 ($28,941).
8. Minnesota
Minnesota ranked fifth for the highest average student debt overall. The state’s average tuition costs at public colleges may be contributing to the problem, according to the Minnesota Department of Higher Education. For example, The University of Minnesota’s tuition is roughly 83 percent higher than the national average ($6,841) for a four-year college.
7. Michigan
According to the U.S. Department of Education, 12.9 percent of Michigan college loan borrowers are currently in default. According to the report, more graduates in Michigan are defaulting simply because they cannot keep up with the payments.
6. Mississippi
Mississippi ranked number one for student debt taking up the largest percentage of graduate income. Sixty percent of graduates had $29,384 in student debt on average, according to recent data from the Institute of College Access and Success. The state also ranked fourth for the highest unemployment rate among young professionals aged 25 to 35.
5. Ohio
In Ohio, 68 percent of students graduate with $29,090 in debt on average, according to a report from the Ohio Office of The Attorney General. Students graduating from larger schools, including Ohio State University ($27,400), University of Cincinnati ($27,938), and Xavier University ($32,131), have some of the highest debt levels upon graduation, according to a report from Institute for College Access and Success.
4. New Hampshire
Graduates in New Hampshire owe an average of $36,367—the highest rate in the country, according to recent data from the Institute for College Access and Success.
3. Pennsylvania
Pennsylvania ranked second in the nation for average amount of student debt, and fifth for the proportion of students with debt in the state. Millenials are leaving the state in high volume, according to a report from the Pennsylvania Independent Fiscal Office.
2. West Virginia
West Virginia ranked second among states with the highest percentage of student loan balances that are past due or in default.
1. South Dakota
South Dakota ranked fourth among states with the highest population of student loan borrowers over the age of 50.
The full report can be viewed here.