The Nation’s Highest Student Debt Is in Washington D.C.
According to the Federal Reserve’s first quarter report for 2013, Washington D.C. has the highest level of student loan debt in the country. More than 25% of the district’s population is carrying student debt right now, which is a higher percentage than any other area. Fortunately, most of those loans are being paid off.
Among the thousands of former college students with debt in D.C., only 7.3% have balances that are more than 90 days delinquent. This is on the low end for the country, with the lowest percentage being 6.5% in South Dakota. The worst state for debt repayment is West Virginia, having more than 18% of its debtors in severe delinquency.
Despite the good news, D.C. students still have a lot of work to do to get back on track. Their average debt is $41,230, which is significantly higher than the $24,810 national average. Student loan debt as a whole increased $20 billion in the country over the last year. What may make this even worse is a potential increase in interest rates over the coming years. Some government officials want to double this rate from 3.4% to 6.8%.
For now, it seems that D.C. graduates are making valiant strides to pay back their student loans. They just have more debt to climb of of than most graduates.