10 Worst States to Live In If You’re Struggling to Pay Off Student Loans
by Elyssa Kirkham, Student Loan Hero, December 5, 2017 (excerpts)
Feel like you’re scraping together just enough money to make your student loan payments each month? Are you close to missing payments — or even defaulting on your student loans?
Such student debt struggles are increasingly common. National trends show the following:
- Nearly a quarter of Direct Loan borrowers are on a income-driven repayment (IDR) plan, according to a Nov. 2016 report from the Government Accountability Office. That’s an increase of almost 150 percent from the 10 percent of borrowers on an IDR plan in June 2013.
- Student loan default rates are rising. A Sept. 2017 report from the U.S. Department of Education shows 11.5 percent of borrowers entering repayment in 2014 defaulted within three years, up from 11.3 percent in 2013.
But where a borrower lives can have a major impact on their ability to pay off their student debt, according to our new study.
If you’re a resident of one of the worst states to live in with student debt, you’re more likely to struggle to keep up with payments….
- Disposable income devoted to student loan payments: 22.17 percent
- Average student loan balance: $25,851
- Average annual wage: $49,430
- City with highest average wage: Honolulu, $51,080
The average student loan debt for residents living in Hawaii is one of the lowest in the nation, and workers earn wages near the national average. However, that’s not enough to make up for costs of living that are 34 percent higher than the national average.
High costs of living stretch Hawaii workers’ paychecks thin and leave them with far less disposable income than residents in other states, making it the worst state for student loan affordability.
read … Full Report