Student debt is one of the most obstructive financial burdens facing young (and not so young) Americans. It is the second largest type of household debt, trailing behind only home mortgages.
Americans now owe more than $1.6 trillion in student loans, or about $37,000 per borrower. But not all student debt is created equal. How much one owes can, in some cases, correlate with where one lives (and where they decided to pursue a degree.)
“College has become much more expensive over the past few decades, with cost increases far outpacing inflation. When you combine that with relatively high interest rates, it’s no wonder that the U.S. has so much student debt,” says Cassandra Happe, an analyst for WalletHub which this week released its latest study of student debt by geographic location.
“Because of how expensive this debt can be, it’s ideal for students to live in a place where they can maximize their income and put as much money as possible toward finally paying off their education.”
And, according to WalletHub’s 2024 report “Cities with the Most & Least Student Debt,” the city where Americans hold the most student debt is Orangeburg, South Carolina.
CITIES WITH THE HIGHEST STUDENT DEBT RATIO
For its report, WalletHub divided the median student-loan balance (based on TransUnion data from October 2023) by the median earnings of adults aged 25 and older with a bachelor’s degree in 2,520 U.S. cities.
It then assigned 100 points to the city with the highest ratio of student debt to earnings and 0 points to the city with the lowest.
Orangeburg, a city of about 14,000 in central South Carolina, has a median student loan debt of $28,034. While that’s far from the highest in Wallethub’s analysis – 53rd highest to be precise – the city also has a relatively low median annual income for people with college degrees at $33,372. That means the average Orangeburg resident with a bachelor degree or higher has an 84% debt-to-income ratio for student loans. For comparison, the average is around 33.9%.
In last year’s report, Orangeburg had a ratio of 72% based on a median debt of $24,405 and a medium income of $33,880. That was the 12th highest debt ratio for 2023.
In WalletHub’s 2024 report, 37 cities ranked in the first percentile for being the most leveraged for student debt. That includes cities with a 58.62% debt to earnings ratio of 58.62% or higher.
America’s HIGHEST Debt Ratio Cities |
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| City | Median Student Debt | Median Earnings | Ratio |
| Orangeburg, SC | $28,034 | $33,372 | 84.00% |
| Ashland, OR | $31,759 | $38,941 | 81.56% |
| Ashtabula, OH | $21,756 | $27,907 | 77.96% |
| Cordele, GA | $18,296 | $23,730 | 77.10% |
| Sun City West, AZ | $26,099 | $34,609 | 75.41% |
| Brookhaven, MS | $21,855 | $28,989 | 75.39% |
| Natchez, MS | $26,917 | $36,127 | 74.51% |
| Sun City, AZ | $24,302 | $32,778 | 74.14% |
| Avon Park, FL | $18,156 | $24,875 | 72.99% |
| Union City, GA | $27,397 | $39,328 | 69.66% |
| Green Valley, AZ | $16,583 | $24,099 | 68.81% |
| Ithaca, NY | $23,691 | $35,432 | 66.86% |
| Ridgeland, MS | $33,865 | $50,698 | 66.80% |
| Loma Linda, CA | $34,169 | $51,341 | 66.55% |
| Jonesboro, GA | $24,121 | $36,375 | 66.31% |
| Richmond, KY | $26,438 | $40,819 | 64.77% |
| Taylorsville, NC | $15,247 | $23,594 | 64.62% |
| Irwin, PA | $26,716 | $41,944 | 63.69% |
| Cottonwood, AZ | $20,144 | $31,919 | 63.11% |
| Reidsville, NC | $16,074 | $25,724 | 62.49% |
| Conyers, GA | $28,053 | $44,948 | 62.41% |
| Moss Point, MS | $20,188 | $32,354 | 62.40% |
| Walterboro, SC | $21,598 | $34,618 | 62.39% |
| Williamsburg, VA | $25,701 | $41,414 | 62.06% |
| Greenwood, MS | $24,722 | $39,955 | 61.87% |
| Ypsilanti, MI | $26,498 | $42,873 | 61.80% |
| Selma, AL | $19,719 | $31,907 | 61.80% |
| Rolla, MO | $21,673 | $35,568 | 60.93% |
| Mount Airy, NC | $22,172 | $36,389 | 60.93% |
| Forest Park, GA | $17,021 | $28,065 | 60.65% |
| Berea, KY | $23,369 | $38,869 | 60.12% |
| Oxford, MS | $23,252 | $38,871 | 59.82% |
| Sequim, WA | $24,415 | $40,893 | 59.70% |
| Marquette, MI | $23,161 | $39,041 | 59.32% |
| Westwego, LA | $20,521 | $34,620 | 59.27% |
| Montgomery, AL | $28,551 | $48,594 | 58.75% |
| Fernandina Beach, FL | $20,451 | $34,889 | 58.62% |
CITIES WITH THE LOWEST STUDENT DEBT RATIO
On the other end of the spectrum, there are 36 cities with the lowest student debt ratio (or in the 99th percentile.)
Manhattan Beach, Calif.,, has the lowest ratio of student debt to median income at just 12.77%. Its median student debt is $15,288 with a median income of $119,720.
The next lowest are Saratoga, Calif., at 13.19% and Sunnyvale, Calif., at 13.32%. In fact, perhaps unsurprisingly, 22 of the lowest 36 student debt ratio cities in America are located in California, where median salaries tend to be much higher. See the table below for more detail.
America’s LOWEST Debt Ratio Cities |
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| City | Median Student Debt | Median Earnings | Ratio |
| Manhattan Beach, CA | $15,288 | $119,720 | 12.77% |
| Saratoga, CA | $15,070 | $114,257 | 13.19% |
| Sunnyvale, CA | $15,000 | $112,603 | 13.32% |
| Los Altos, CA | $22,555 | $167,832 | 13.44% |
| San Carlos, CA | $19,782 | $145,179 | 13.63% |
| Gillette, WY | $11,535 | $76,563 | 15.07% |
| Scarsdale, NY | $24,803 | $164,306 | 15.10% |
| Los Gatos, CA | $22,575 | $147,882 | 15.27% |
| Cupertino, CA | $21,413 | $137,712 | 15.55% |
| Dayton, TX | $15,500 | $95,536 | 16.22% |
| Crosby, TX | $12,935 | $79,044 | 16.36% |
| Riverbank, CA | $15,077 | $91,528 | 16.47% |
| Southlake, TX | $26,890 | $162,583 | 16.54% |
| Milpitas, CA | $16,423 | $99,294 | 16.54% |
| Santa Clara, CA | $19,000 | $112,628 | 16.87% |
| Sammamish, WA | $22,046 | $130,375 | 16.91% |
| Gilroy, CA | $17,554 | $103,800 | 16.91% |
| Reedley, CA | $9,603 | $56,432 | 17.02% |
| Newark, CA | $16,789 | $97,886 | 17.15% |
| East Wenatchee, WA | $15,314 | $88,365 | 17.33% |
| Fremont, CA | $18,831 | $108,181 | 17.41% |
| Blaine, WA | $17,541 | $100,344 | 17.48% |
| Redmond, WA | $20,370 | $116,533 | 17.48% |
| Mercedes, TX | $11,000 | $62,843 | 17.50% |
| Oakdale, CA | $15,685 | $89,505 | 17.52% |
| Barstow, CA | $11,856 | $67,639 | 17.53% |
| Campbell, CA | $19,177 | $108,719 | 17.64% |
| Foster City, CA | $20,580 | $115,728 | 17.78% |
| Magnolia, TX | $15,195 | $84,917 | 17.89% |
| Sanger, CA | $10,023 | $55,838 | 17.95% |
| Woodinville, WA | $20,000 | $111,303 | 17.97% |
| Pleasanton, CA | $20,918 | $115,366 | 18.13% |
| Fountain Hills, AZ | $15,542 | $85,443 | 18.19% |
| Los Lunas, NM | $15,073 | $82,806 | 18.20% |
| Watsonville, CA | $13,055 | $71,250 | 18.32% |
| Belmont, CA | $21,507 | $116,968 | 18.39% |
WHAT STUDENTS SHOULD CONSIDER
There are multiple factors to consider when looking to apply for student loans and how much you will need.
Neil Librock, a retired professor, of corporate finance and personal financial management at Cal State University East Bay, says students should look first at government-sponsored loans. (The botched FAFSA rollout notwithstanding.)
“Government-sponsored loans (after exhausting all other funding sources) are the lowest cost and most accessible option. Review loan terms with parents or a trusted financial advisor. Understand repayment amounts and loan maturity,” Librock says in the report.
Students should also look to save money where they can. That could be in-state public universities with tuition breaks for resident students, community colleges when available, and looking for any and all scholarships they can nab.
It’s not just that student loan debt can hang over young people’s heads for many years, even decades in some cases, it can seriously delay financial milestones.
“Outstanding student loan debt has made it harder for young adults to become financially stable or to afford the ‘markers’ of the middle class,” says A. Mechele Dickerson, the Arthur L. Moller Chair in Bankruptcy Law and Practice at The University of Texas at Austin School of Law.
“One reason homeownership rates have stalled for young adults is that they cannot afford to repay their loans and also save enough for a downpayment on a home. Marriage rates are lower for young adults and birth rates are down because so many young adults are struggling to support themselves and rationally conclude that they cannot afford to support an additional person. As they work to repay their student loans, many do not save for retirement.”
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