Student Loan Debt Rankings
WalletHub analysis reveals U.S. cities where student loan debt is hardest to manage.
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Student loan debt is the second largest type of household debt in the U.S., totaling nearly $1.7 trillion, according to a new WalletHub analysis reported by WalletHub via WAFF. The study looked at more than 2,500 U.S. cities and compared median student loan balances to median earnings for adults with bachelor's degrees — revealing a stark divide between cities where debt is crushing and cities where it is manageable.
The findings matter because where you live can directly shape how hard it is to pay back your loans. A high balance paired with low local wages creates a debt trap. A lower balance in a high-wage city makes repayment far more realistic.
Cities Where Student Debt Hits Hardest
Ashtabula, Ohio, Orangeburg, South Carolina, and Loma ranked among the cities with the highest debt-to-income ratios in the country, according to WalletHub via KALB. In these cities, median student loan balances are high relative to what degree holders actually earn. That gap makes it extremely difficult for borrowers to keep up with monthly payments without financial strain.
Orangeburg, South Carolina stands out as a notable case. The city is home to two historically Black colleges and universities, which often serve students from lower-income backgrounds. Those students may graduate with significant debt but enter local job markets that do not pay enough to offset it, WalletHub via WLBT reported.
How WalletHub Measured Debt Burden Across 2,500 Cities
WalletHub's method was straightforward: divide median student loan balances by median earnings for adults holding a bachelor's degree. That ratio reveals the true weight of debt in each city. A city with a $30,000 median balance and $60,000 median earnings looks very different from one with the same balance and only $30,000 in median earnings, according to WalletHub via Fox34.
The study covered more than 2,500 cities, making it one of the broadest city-level analyses of student debt burden available. Researchers used median figures rather than averages to avoid distortion from extreme outliers — a method that gives a clearer picture of the typical borrower's situation, WalletHub via WILX noted.
Where Student Loan Repayment Is More Manageable
Not every city paints a grim picture. The WalletHub analysis also identified cities where student loan debt is easier to handle. These tend to be places with higher median wages for college graduates and relatively modest average loan balances, according to WalletHub via KCRG. Cities in states with strong tech, finance, or healthcare sectors consistently appeared near the top of the manageable end of the ranking.
The contrast between the best and worst cities is striking. In the most manageable cities, a borrower's loan balance may represent only a fraction of one year's salary. In the hardest cities, that same balance could equal two or three years of take-home pay, WalletHub via Wave3 reported.
Why the $1.7 Trillion Student Debt Crisis Keeps Growing
Student loan debt ranks second only to mortgage debt among all household debt types in the U.S. The $1.7 trillion total has grown steadily for decades as tuition costs rose faster than wages. That means even borrowers who finish their degrees on time can find themselves in a difficult financial position, according to WalletHub via Live5News.
For many borrowers, the city they settle in after graduation is the deciding factor in whether they can get ahead. A degree alone does not guarantee financial stability. The local job market, wage levels, and cost of living all play a major role in how manageable — or overwhelming — student debt becomes, WalletHub via WITN reported.
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