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How Average Student Loan Debt Is Much Lower in California Than New York

Jon C. Ogg

Published: May 19, 2016 8:10 am

Last Updated: January 13, 2020 7:51 am

The burden of student debt is reaching epic proportions in the United States. This trend has grown in recent years and is expected to continue in the years ahead. It turns out that major population centers are not all equal when it comes to student debt levels. In fact, the graduating class of 2016 will carry more student loan debt than any other class in history.

According to the Institute for College Access and Success, the average student loan debt at graduation has risen from $18,550 in 2004 to a whopping $28,950 in 2014. That is up 56% in just a decade. The cost of tuition of a public in-state four-year college or university program rose roughly 40% between 2005 and 2015. In short, the cost of a college degree is rising less than the increase in loan debt.

The Institute for College Access and Success data showed that the increase in student loan debts has varied considerably between states. 24/7 Wall St. reviewed all states to see which ones had the highest amount of average student loan debt as of 2014. While Delaware had the highest (average $33,808), Utah’s was the lowest (average $18,921). But what about in the states with massive populations?

Well, the average student loan debt is far lower in California than in New York. Major cities in each of these states tend to have high costs of living, and both states have high taxes. Both states have very similar median household incomes (more than $65,000), and the college attainment levels are quite similar. So why are the average student debt levels so different?

The Census Bureau showed that California’s population at the end of 2014 was roughly 38.8 million, making it the most populous state. The state of New York had close to 19.7 million.

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