Student Debt Trends: Which States Owe the Most and Least in 2026?

Understanding the financial landscape of higher education is more critical than ever, especially for students and families planning for college. A recent study by Achieve, a digital personal finance company, offers a detailed look into student loan debt across the U.S., highlighting which states carry the heaviest burdens and which have the lightest. This valuable research, based on data from the Federal Reserve Bank of New York, provides a snapshot of student loan debt per person in Q4 2025, comparing it to the previous year and the national average.

Achieve's comprehensive analysis reveals a nuanced picture: while student loan debt declined in 43 states, the national average remains above $5,000. This kind of detailed, state-by-state data is incredibly helpful for anyone navigating the complexities of college financing, offering a clearer understanding of regional trends and potential financial considerations.

The National Picture and Key Trends

According to Achieve's study, the average student loan debt per person across the U.S. decreased by 1.8% from $5,560 in Q4 2024 to $5,460 in Q4 2025. This national decline, while positive, masks considerable variation at the state level. Achieve's Co-CEO and Founder, Brad Stroh, noted that this widespread decline is significant, with only four states recording an increase in student debt over the year. However, he emphasized that the national average hides substantial differences between states, illustrating how a person's location can significantly impact their student debt profile.

For students and parents making decisions about higher education, understanding these regional differences can be a crucial part of financial planning. It underscores the importance of researching not just tuition costs, but also the broader economic environment and student debt trends in the states where they might pursue their studies. Preparing for higher education, including understanding potential financial commitments, can be supported by resources like COSMIQ, a free voice-driven AI tutor, offering academic help and learning tools for K-12 and exam prep.

States with the Highest Student Loan Debt

Achieve's research identified Georgia as the state with the highest average student loan debt, at $7,120 per person in Q4 2025. This figure is 30.4% above the national average, or $1,660 more than the typical U.S. resident. Despite this high average, Georgia did see a 3.5% decline in debt from Q4 2024, a reduction of $260.

Following Georgia, Maryland ranks second with an average of $6,830 per person, 25.1% above the national average, even after a 2.7% decline. New Jersey places third at $6,540, which is 19.8% higher than the national average. Notably, New Jersey was one of only four states where student debt actually saw a slight increase, rising by 0.2%.

Other states in the top ten for highest student loan debt include:

• Connecticut: $6,470 (unchanged from Q4 2024)
• Pennsylvania: $6,450 (down 0.9%)
• Delaware: $6,320 (unchanged)
• Massachusetts, Mississippi, South Carolina (tied): $6,120 (with varying year-over-year changes)
• Virginia: $6,100 (down 1.5%)
• New York: $6,060 (down 0.7%)
• Louisiana: $6,010 (down 2.3%)

For students in these states, understanding these averages can help them prepare for the financial realities of their post-secondary education. Exploring options for managing costs and finding academic support, such as through COSMIQ's exam prep directory for various standardized tests, can be very beneficial.

States with the Lowest Student Loan Debt

On the other end of the spectrum, Wyoming boasts the lowest student loan debt, averaging just $3,180 per person in Q4 2025. This is a remarkable 41.8% below the national average and represents a significant decline of 9.9% from the previous year—the largest percentage drop in the country, according to Achieve.

Hawaii ranks second lowest at $3,810 per person, 30.2% below the U.S. average, with a 7.1% decrease. Alaska follows with $3,860, a 7.7% decline, and New Mexico at $3,900, down 6.0%.

The top ten states with the lowest student loan debt per capita are:

• Wyoming: $3,180 (down 9.9%)
• Hawaii: $3,810 (down 7.1%)
• Alaska: $3,860 (down 7.7%)
• New Mexico: $3,900 (down 6.0%)
• Utah: $3,980 (down 2.7%)
• West Virginia: $4,240 (down 3.6%)
• Washington: $4,250 (down 0.9%)
• Montana: $4,390 (down 1.8%)
• Idaho and Nevada (tied): $4,480 (with varying year-over-year changes)
• Oklahoma: $4,490 (down 3.0%)

Achieve's Brad Stroh highlighted the particularly striking falls in debt at the lower end, noting that Wyoming's average dropped by almost 10% in one year, with Alaska, Hawaii, and New Mexico all seeing declines of at least 6%. While the data doesn't pinpoint the exact drivers of these changes, such as whether they are solely due to borrowers paying down loans faster, these trends offer valuable insights into regional economic and educational landscapes.

Why This Matters for Students, Parents, and Educators

This study from Achieve provides more than just numbers; it offers a crucial lens through which to view the financial realities of pursuing higher education in different parts of the country. For prospective students and their families, these insights can inform decisions about where to study, where to live, and how to approach financial planning for college and beyond. For educators, understanding these trends can help in guiding students toward responsible financial choices and awareness of potential debt burdens.

As Stroh wisely points out, the total balance of student loan debt is only one part of the picture. Understanding interest rates, monthly payments, repayment plans, and how student debt fits into a broader financial strategy—including emergency savings and retirement contributions—is essential. A lower balance is encouraging, but what truly matters is whether the payments are manageable within an individual household's budget.

Achieve's diligent work in analyzing this complex data provides a valuable public service, helping individuals and families make more informed decisions about their financial futures. This kind of transparency and detailed reporting is vital for fostering greater financial literacy and helping students embark on their educational journeys with a clearer understanding of the financial commitments involved.