Student Loan Debt in 2023 Analysis: DMV Regions Among Top in US, Exceeding $1.64 Trillion Nationally

In 2023, the regions encompassing Washington, D.C., Maryland, and Virginia have emerged as some of the top areas in the United States burdened with the highest student loan debt in 2023, according to a recent analysis conducted by ChamberofCommerce.org.

The alarming rise in student loan debt in 2023 is a matter of concern for policymakers and educators alike. (Photo: Pinterest)

Student Loan Debt in 2023 Analyis

The surge in student loan debt in 2023 has been fueled, in part, by the suspension of student loan payments that began in March 2020.

As reported by the U.S. Department of Education (DOE), federal student loan debt has seen an alarming increase of $102 billion during this period.

The staggering total national student loan debt in 2023 figure now surpasses $1.64 trillion, with a significant 43.6 million Americans grappling with the financial burden of these loans, according to further reports from the DOE. On average, borrowers currently carry a federal student loan balance of $35,210.

According to a published article, to compile their ranking of states with the highest average student loan debt in 2023, ChamberofCommerce.org meticulously analyzed federal student loan debt balances across all 50 states, including Washington, D.C., and Puerto Rico.

The data from the DOE and the Federal Student Loan Portfolio, which includes Federal Family Education Loans (FFEL), Direct Loans, and Perkins Loans were taken into deliberation during the student loan debt in 2023 analysis.

The findings from the study revealed the following rankings for the DMV regions:

1. Washington, D.C.: Topping the list, the region carries a total student loan debt of $6.1 billion. The average number of borrowers in the District is 111,200, and the average debt per borrower amounts to $54,856.
2. Maryland: Coming in at second place, Maryland has a total student loan debt of $34.5 billion. The average number of borrowers in the state is 808,600, with an average debt per borrower of $42,666.
3. Virginia: Securing the fourth spot in the ranking, Virginia has a total student loan debt of $41 billion. The average number of borrowers in the state is 1,607,400, and the average debt per borrower stands at $38,679.

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Average Student Loan Landscape in the United States

According to Forbes, the alarming rise in student loan debt in 2023 is a matter of concern for policymakers and educators alike. Presently, over half of students graduate from educational institutions carrying substantial debt burdens.

Here’s an overview of the average student loan landscape in the United States:

• Total Student Loan Debt: The combined student loan debt in the U.S. stands at a staggering $1.75 trillion, encompassing both federal and private loans.
• Average Borrower Debt: On average, each borrower owes $28,950 in student loans.
• Composition of Debt: Approximately 92% of all student debt is in the form of federal student loans, while the remaining 8% constitutes private student loans.
• Debt Incidence in Public and Private Institutions: Among students graduating from public four-year institutions, 55% have student loans, while this figure is slightly higher at 57% for students from private nonprofit four-year institutions.

As the issue persists, policymakers must continue to explore innovative strategies to make higher education more affordable and accessible for all students, while also providing support for those grappling with the weight of student loan debt in 2023.

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