July 31 – A personal finance website that offers a variety of products and services to help people improve their financial health has come out with a study that indicates Mississippi college students leave school with the highest average student loan debt in the nation.
The report comes from WalletHub, observing that student loan debt now surpasses $1.6 trillion nationally.
WalletHub compared the 50 states and the District of Columbia across 12 key metrics. The data set ranges from the average student loan balance to the unemployment rate among 25- to 34-year-olds to the share of students with past-due loan balances.
Mississippi has the biggest student debt problem in the country. The average amount owed by people with student loan debt equals about 58 percent of the median income in the state, the highest rate in the U.S. In addition, Mississippi has the third-highest default rate on student debt, which shows that people are having trouble paying off what they borrow.
WalletHub stated in the report that one reason why student borrowers are struggling in Mississippi is that they are having a hard time finding jobs. Mississippi has the second-worst availability of jobs to students, and the fourth-lowest share of paid internships.
Mississippi also does not have a state student loan ombudsman law (which would create a position to resolve complaints regarding loans).
Student Debt in Mississippi (1=Most; 25=Avg.):
Overall Rank: 1st
21st – Average Student Debt
18th – Proportion of Students with Debt
1st – Student Debt as percent of Income (Adjusted for Cost of Living)
21st – Unemployment Rate of Population Aged 25 to 34
3rd – Percent of Student Loans Past Due or in Default
2nd – Availability of Student Jobs
4th – Availability of Paid Internships
“The single most important thing a student can do to limit debt is limit their lifestyle,” said Julie Poorman, MPA, the Director of Financial Aid, East Carolina University. “A wise woman I know urges students at orientation to live like a student while they are a student so that they may live like a professional when they achieve that status. That means having a roommate, not living in the apartment complex with a party room and a pool, and not buying a car – use public transportation if it is offered in your community. Do not borrow to support a lifestyle; borrow only what you need to have a bed to sleep in and to put food on the table. Understand what is a ‘want’ versus what is a ‘need.’”
