TAMPA, Fla. (WFLA) – The Federal Reserve reports that nearly $1.8 trillion in student debt across the United States as of November 2022. Federal data from the Department of Education shows that Florida, California and Texas are the three states with the highest amounts due.
In Florida alone, $102.8 billion in student debt belongs to borrowers residing in the state, about 2.64 million people, according to USDOE data for June, the latest data available. Compared to California and Texas, Florida has the lowest number of borrowers of the three and the lowest student debt.
But three of those states, which are among the most populous in the country, are the only ones with more than $100 billion in student debt. The next lowest state is New York, which had $93.6 billion in student debt for its 2.4 million borrowers as of June.
Nationally, the Federal Reserve states that there is $1.76 trillion in student debt nationwide.
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In the third quarter of 2021, there was $1.74 trillion in student debt, meaning it added about $29.4 billion over the past year. According to federal data, student borrowers added an additional $23.4 billion quarter over quarter. The data shows that some quarters saw a multibillion-dollar decline in total student debt.
Total student debt as well as the number of borrowers and debt by state are published in quarterly reports by the federal government. The next data will be released in 2023, which will cover the fourth quarter data for 2022.
Still, the debt continues to grow each year as tuition fees rise across the country. While President Joe Biden has been pushing for new relief strategies and forgiveness plans, they are still bound in court. Previous plans to freeze repayments again in January have been pushed back to June 2023 because the relief plan is controversial in court.
An analysis of recent student loan data from MyCreditSummit.com showed that student loans averaged about $40,000 in loan debt after graduation. According to their data study, the average monthly payments are $460. The report said it expects tuition fees to continue to rise, up to 8% per year.
MyCreditSummit describes student debt as the “fastest-growing debt in the US” and the second largest chunk of household debt, with only mortgage debt being higher.
Overall, US household debt remains on an upward trend amid inflationary pressures and other economic hurdles.
“Total household debt continued its upward trend in the third quarter of 2022, rising $351 billion, the largest quarterly nominal increase since 2007,” the Federal Reserve reported. “During Q3 2022, $633 billion in new mortgage debt was originated. After two years of historically high volumes in mortgage origination, volume in Q3 is closer to pre-pandemic volume.”
A companion federal debt report showed that after “two years of historically low arrears transitions,” all debt types showed an increase in arrears on outstanding debt. While student debt increased, the report said student debt arrears were lower, reflecting a “continued pause in loan repayments”.
Separately, EducationData, which tracks and analyzes student debt, reported, “Total national debt from student loans increased 1.53% year over year in the second fiscal quarter of 2022, the lowest rate of increase in the 21st century.” Their data showed that nearly 32 % of all students take out federal loans for graduation.