Wallet Hub: “Post-college debts represent one of the biggest financial burdens to Americans. In fact, student loans make up the second highest form of household debt after mortgages, totaling $1.5 trillion. But how burdensome are the individual loans? According to one study, the share of students graduating with $50,000 or more in student loan debt has more than tripled since the year 2000. High balances combined with a payoff timeline that lasts into middle age force many graduates to significantly delay or forego other financial goals such as saving for retirement or buying a home. That’s the unfortunate reality for many student-loan borrowers who cannot keep up with their payments. According to Forbes, 40% of borrowers may default on their student loans by 2023. Surprisingly, though, students with smaller debts are more likely to default than those with larger ones.
Student-loan debts are more unsustainable in some places than others. WalletHub therefore compared the median student-loan balance against the median earnings of adults aged 25 and older with a bachelor’s degree in each of 2,510 U.S. cities to determine where Americans are most overleveraged on their college-related debts. Read on for our findings, expert advice from a panel of researchers and a full description of our methodology. If you’re considering borrowing money for college or are in danger of defaulting, we advise using a Student Loan Calculator to determine an affordable payment amount and realistic payoff timeline. In addition, you can set up a free WalletHub account to ensure your timely payments are reflected accurately in your credit report and score. Maintaining “excellent” credit will help you minimize unnecessary debt costs and pay your student loans in the fastest time possible…”