MA Ranked as 26th Best State for Student Debt

Thursday, August 04, 2016

GoLocalWorcester News Team

MA has been ranked as the 26th best state for student debt.

According to the study, Massachusetts ranks 35th in student indebtedness and 2 in grant and work opportunities for students.

"Save for mortgages, student loans constitute the largest component of household debt for Americans. And our collective debt keeps growing. At the end of the first quarter of 2016, total outstanding college-loan balances disclosed on credit reports stood at $1.26 trillion, according to the Federal Reserve Bank of New York. The latest figure represents an increase of $29 billion from the previous quarter and $72 billion from a year ago," said WalletHub.

The Rankings

Massachusetts ranks 26th behind Illinois and Idaho at 24 and 25 respectively, while they rank ahead of Missouri and North Carolina at 27 and 28 respectively.

Utah is ranked as the best state for student debt, while District of Columbia is ranked as the worst state.

See the Map Below for Full Rankings

Source: WalletHub

The Method

WalletHub's analysts compared the 50 states and the District of Columbia across two key dimensions including student loan indebtedness and grant and work opportunities for students.

They then evaluated the categories using nine metrics, with each metric being graded on a scale form 0-100, with 100 representing the most favorable conditions for student debtors.

WalletHub then calculated overall scores for each state using the weighted average across all metrics, which was used to come up with the final rankings.

Student-Loan Indebtedness - Total Points: 85

Average Student Debt: Full Weight (~14.17 Points)
Proportion of Students with Debt: Full Weight (~14.17 Points)
Student Debt as a Percentage of Income: Double Weight (~28.33 Points)

Note: This metric was calculated by dividing overall state-level student debt per borrower by median household income (adjusted for cost of living).

Percentage of Student Loans in Past-Due or Default Status: Full Weight (~14.17 Points)
Percentage of Student-Loan Borrowers Aged 50 & Older: Full Weight (~14.17 Points)
Note: This metric was adjusted for the population aged 50 and older.

Grant & Work Opportunities for Students - Total Points: 15

Unemployment Rate for People Aged 25 to 34: Full Weight (~3.75 Points)
Availability of Student Jobs: Full Weight (~3.75 Points)

Note: This metric measures student jobs per total civilian population aged 16 to 24 in the labor force.

Availability of Paid Internships: Full Weight (~3.75 Points)

Note: This metric measures paid internship listings per total civilian population aged 16 to 24 in the labor force.

Availability of Grants: Full Weight (~3.75 Points)

Note: This metric measures the percentage change (2014 vs. 2013) in state- and local-government grants per in-district and in-state undergraduate student.

Related Slideshow: New England States with the Highest Student Debt

A new report released by the Institute for College Access & Success' Project on Student Debt found that the average debt load for the class of 2012 was $29,400 -- up more than 10% from the previous year. Check out the slides below to see where New England ranks in terms of average student debt.