North Dakota Ranks 3rd in the Nation for Lowest Percentage of Student Loan Debt
Based on a new study, if you live in North Dakota, your student loan debt may not be that bad...in comparison to the rest of the country.
Aside from mortgages, student loans makeup the largest component of household debt for Americans. Despite the fact that unemployment rates decrease and income potential rises with more schooling, college graduates are learning that a degree doesn't guarantee financial security.
In a recent study done by WalletHub, financial analysts compared the 50 states and the District of Columbia in order to identify the best and the worst from the list. They came up with two categories, "Student Loan Indebtedness" and "Grant & Work Opportunities for Students." Between the two categories, they graded nine metrics that were graded on a weighted scale from 0 to 100 with the latter representing the most favorable conditions for student debtors.
Based on their overall info, North Dakota listed at the 3rd best state for student loan debt. Some key determining factors putting it at such a favorable ranking were that it ranks 3rd in "Lowest Student Debt as a Percentage of Income (adjusted for cost of living)," 3rd in "Lowest Unemployment Rate for People Aged 25-34," and 2nd in "Lowest Percentage of Student Loans in Past-Due or Default Status."
In the overall rankings, the only states to beat out North Dakota were Utah and Wyoming, listed at 1st and 2nd overall respectively.
For each state, in terms of "Student-Loan Indebtedness," the metrics taken into consideration were:
- Average Student Debt
- Proportion of Students with Debt
- Student Debt as a Percentage of Income
- Percentage of Student Loans in Past-Due or Default Status
- Percentage of Student Loan Borrowers Age 50+
In terms of "Grant & Work Opportunities for Students:
- Unemployment Rate for People Aged 25-34
- Availability of Student Jobs
- Availability of Paid Internships
- Availability of Grants
So as for how much of a pain student loans can be, just know that in other locations around the country, it could be a lot worse.