As of June 30, 42.3 million people held more than $1.72 trillion in outstanding federal student loans, according to Department of Education data analyzed by Business Insider. Across the country, federal student loan borrowers carry an estimated average balance of $40,768. Yet individual debt loads vary drastically depending on the state of residence.
Tracking the Geographic Distribution of Federal Debt
The Department of Education tracks total outstanding federal loan balances and the number of borrowers by their current state of residence. While the federal data does not reflect the specific colleges borrowers attended, where they took out loans, or how much students currently borrow, it illustrates how the federal student loan portfolio is geographically distributed.
North Dakota Registers the Lowest Average Balance
North Dakota registers the lowest average balance in the nation at $30,543 per borrower. This sum is spread across 88,400 people for a total state balance of $2.7 billion, Business Insider reported. South Dakota follows closely behind with an estimated average balance of $31,705 across 116,700 borrowers, totaling $3.7 billion.
Midwest and Plains States Show Moderate Averages
Moving up the ranking, Iowa borrowers carry an average balance of $31,885 across a total state balance of $13.5 billion. Wyoming records an average of $32,847 across 54,800 borrowers, while Oklahoma borrowers owe an average of $33,483 across a total portfolio of $17.1 billion. Nebraska residents hold an average federal student loan debt of $33,676, and West Virginia borrowers average $33,728.
In Wisconsin, 709,100 borrowers hold a total state balance of $24.0 billion, translating to an average of $33,846 per person. Rhode Island borrowers average $34,068 across a total of $5.1 billion, and Indiana residents carry an average balance of $34,502 across a total state balance of $31.0 billion. Kansas borrowers average $34,537, Idaho borrowers average $34,642, and Texas borrowers—representing one of the largest state pools—owe an average of $35,014 across nearly four million accounts, according to Business Insider’s analysis.
Kentucky, New Mexico, and Minnesota Round Out the Data
Kentucky borrowers average $35,088, New Mexico records an average of $35,398, Utah borrowers average $35,429, and Arkansas borrowers carry an average of $35,504. In Minnesota, 772,600 borrowers hold a total balance of $27.5 billion, rounding out the available state listings.
Key Questions Regarding Federal Student Loans
What total amount of federal student debt do these figures represent?
As of June 30, the Department of Education reports that 42.3 million people hold more than $1.72 trillion in outstanding federal student loans.
What is the national average federal student loan balance per borrower?
Federal student loan borrowers across the country carry an estimated average balance of $40,768, according to Business Insider’s analysis of federal portfolio data.
Does the Department of Education data show which specific colleges borrowers attended?
No, the federal data does not reflect the specific institutions borrowers attended, the original locations where they took out their loans, or how much students currently borrow, but rather tracks borrowers by their current state of residence.
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