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2018-08-08 / News

Michigan in Top 10 Worst States for Student Debt

“Location, location, location” is the most important phrase in real estate. But the mantra applies to education, too. Where you live doesn’t just affect the value of your property; it also reflects the worth of your college degree—the same degree that may have put you in debt.

With 10.7 percent of all student-loan debts 90+ days delinquent or in default as of Q1 2018, graduates need to be selective with the places in which they choose to put their degrees to work. New York City, for instance, might have a high average salary for a certain profession, but the high cost of living could outweigh the gains.

Save for mortgages, student loans make up the largest component of household debt for Americans… and our collective debt keeps growing. At the end of the first quarter of 2018, total outstanding college-loan balances disclosed on credit reports stood at $1.41 trillion, according to the Federal Reserve Bank of New York.

There is evidence that income potential rises and chances of joblessness decline with more schooling, but many graduates entering the labor market are learning the hard way that a college degree can’t guarantee financial security.

Post-college success depends on numerous factors, including where a graduate lays down roots. Student-loan borrowers generally fare better in strong-economy states with low college-debt-toincome ratios.

With student-loan debtors in mind, WalletHub compared the 50 states and District of Columbia based on 11 key measures of indebtedness and earning opportunities. Our data set ranges from average student debt to unemployment rate among the population aged 25 to 34 to share of students with past-due loan balances.

Tip: If you’re considering borrowing money for college or are in danger of defaulting, consider leveraging a Student Loan Calculator to determine an affordable monthly payment and payoff timeline.

Student Debt in Michigan

(1=Worst; 51=Best)

7th — Overall Rank

13th – Average Student Debt

10th – Proportion of Students with Debt

4th – Student Debt as percent of Income (Adjusted for Cost of Living)

26th – Unemployment Rate of Population Aged 25 to 34

19th – Percent of Student Loans Past Due or in Default

21st – Percent of Student Loan Borrowers Aged 50+

19th – Availability of Student Jobs

24th – Availability of Paid Internships

25th – Grant Growth

12th – Grant and Student Work Opportunities

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