Student debt is a heavy weight on the shoulders of many graduates nationwide, totaling $1.6 trillion. WalletHub’s latest Cities with the Most & Least Student Debt report breaks down where borrowers are struggling the most, comparing student loan balances to median earnings in over 2,500 U.S. cities. If you’re worried about repaying your loans after graduation, you might want to avoid these hotspots where student debt is off the charts.
Cities with the Most Debt
- Loma Linda, CA
- Carbondale, IL
- Richmond, TX
- Avon Park, FL
- King George, VA
- The Villages, FL
- Jackson, GA
- Union City, GA
- Orangeburg, SC
- Rolla, MO
Cities with the Least Debt
- Palo Alto, CA
- Orangevale, CA
- Sammamish, WA
- Dinuba, CA
- Bronxville, NY
- Gilroy, CA
- Campbell, CA
- Barstow, CA
- Los Altos, CA
- Scarsdale, NY
Loma Linda, California, tops the list for student debt struggles, with grads owing $42,261 on average while earning just $53,141 a year – leaving nearly 80% of their income tied up in loan payments. WalletHub analyst Chip Lupo stressed the importance of choosing a city where earnings can support repayment, and he says Loma Linda isn’t one of them.
Next up is Carbondale, Illinois, with median loans sitting at $24,717 that’s paired with a low $31,557 average salary. Carbondale borrowers shoulder a 78% debt-to-income ratio, and financial expert Robert Haywood Scott III, Ph.D. recommends, “If someone doesn’t know what they want, it’s best to spend less money on an undergraduate degree.”
Then there’s Richmond, Texas, where grads are struggling to make ends meet despite the state’s booming industries. Student loans here hover around $22,560, but the median salary sits at a shockingly low $29,470, which places borrowers in a 76% debt-to-income trap. Joseph P. Bagnoli, Vice President for Enrollment, Dean of Admission and Financial Aid at Grinnell College, notes that one common mistake is, “automatically borrowing the maximum available instead of the amount they actually need.”
