Biden is forgiving $10K in student loan debt. How much does SC have compared to other states?
South Carolina residents have more student debt burden than those in most other states, a new report shows.
President Joe Biden announced a plan on Wednesday to forgive up to $10,000 for federal student loan debt and also $20,000 in federal Pell Grant debt — a long-awaited decision to help those struggling, especially since the COVID-19 pandemic.
The decision will mean relief for thousands in South Carolina in particular, which is the ninth state with the most student loan burden, according a new report from WalletHub, a major personal finance website.
“Save for mortgages, student loans make up the largest component of household debt for Americans,” the report states. “Our collective debt keeps growing too.”
Total U.S. outstanding college-loan balances were nearly $1.61 trillion at the end of the first quarter of 2022, according to the Department of Education. That means the nation’s 43.3 million borrowers owe $37,000 on average.
To rank states according to debt burden, WalletHub based its report on 11 key measures of indebtedness and earning opportunities. The data set ranged from average student debt to unemployment rate among 25 to 34 year olds and the share of students with past-due loan balances. Data came from sources including the U.S. Census Bureau, the Bureau of Labor Statistics, the Institute for College Access and Success, the U.S. Department of Education College Affordability and Transparency Center and the Pew Charitable Trusts.
Here’s were South Carolina ranked among some key metrics, which helped it reach its ninth overall ranking.
11th — Average student debt
12th — Proportion of students with debt
4th — Student debt as percentage of income (adjusted for cost of living)
27th — Unemployment rate of 25 to 34 year olds
13th — Percentage of student loans past due or in default
27th — Availability of student loans
10th — Availability of paid internships
16th — Grant growth
Besides forgiving some debt, there’s other ways the federal government can help students, Andrew Burnstine, associate professor at Lynn University in Florida, said in a WalletHub press release.
“The federal government should help students pay for college with more financial aid alternatives to student loans,” Burnstine said.
“One way to do this is for the federal government to increase the size of Pell Grants and make them available to more working-class and middle-class students.”
Here are the 10 states with the most student loan debt burden, according to the report.
West Virginia
Pennsylvania
South Dakota
New Hampshire
Mississippi
Delaware
Kentucky
Rhode Island
South Carolina
North Dakota
