Pennsylvania Sees Increase in Average Student Loan Debt, Highest and Lowest Balances Revealed

In the first half of 2024, Pennsylvania experienced a rise in average student loan debt, reaching $39,436, which is $1,878 higher than the previous year. This places Pennsylvania as the 16th state with the highest average loan balance, surpassing the national average by $553.
Highest and Lowest Average Balances Revealed

Among all states, Washington, D.C. leads with an average of $57,927, followed by Maryland with $45,434, Georgia with $43,005, New York with $42,058, and California with $41,991. Conversely, North Dakota has the lowest average student loan balance at $31,040, followed by Iowa with $31,829, South Dakota with $32,112, Wyoming with $32,232, and Nebraska with $33,506.
Student Loan Forgiveness Aids Millions

The Department of Education has provided over $160 billion in student loan relief, benefiting more than 4 million borrowers. This relief includes cancellations of federal student loans and the implementation of income-driven repayment plans. A significant portion of the relief, totaling $62.8 billion, has been granted to borrowers eligible through public service, resulting in an average forgiveness of $71,000 per borrower. Additionally, $14 billion has been forgiven for over half a million borrowers with permanent disabilities, and $29 billion in loans canceled for 1.6 million borrowers through court settlements.
Easing Financial Strain for Current Students

Despite the costs of college tuition stabilizing in recent years, the overall expenses of higher education remain a burden for many. While tuition costs have not increased significantly since 2020, other expenses such as room and board, as well as borrowing costs for student loans, continue to rise.
Challenges Remain for Student Loan Borrowers

Although income-based repayment plans are more common, borrowers with student loan balances still face significant financial hurdles. Compared to those without student loan debt, individuals with student loans tend to have higher credit card balances and larger monthly payments.
Rising Interest Rates for Student Loans

The cost of borrowing for students is on the rise, with federal student loan interest rates climbing to 6.53% for undergraduate students with direct loans starting July 1. This increase is a result of the elevated yields of long-term government notes, indicating that students will face higher interest costs in the upcoming academic year.