Study: California student loan debt is among the lowest in the country
A study released the same day President Biden announced limited student loan forgiveness shows California is one of the least debt-burdened states.
California ranks 48th in average income-adjusted student debt, with only New Mexico and Utah ranking higher, according to Washington, DC-based WalletHub.
The online financial services company said West Virginia came in bottom, followed closely by Pennsylvania and South Dakota.
Biden announced on Wednesday that the US government would forgive $10,000 in student loans for millions of indebted former students, fulfilling a promise he made during the 2020 campaign for the White House.
The move could bolster support for his fellow Democrats in November’s congressional elections, but some economists have said it could fuel inflation and some Republicans in Congress have questioned whether the president has the legal power to cancel debt. .
The WalletHub study didn’t provide a reason why California ranked so highly, but the state has the top three public universities in the world, as well as an extensive network of state and community colleges. California has also cracked down on expensive for-profit college programs.
“In-state universities typically offer quality education for much less than universities outside your state,” said Jeff Dew, associate professor at Brigham Young University in Utah. “Community colleges are a great way to get started and can save you money over the first two years of your education.”