The average student loan balance in 2020 was nearly $39,000, according to Experian. Combine that balance with a repayment timeline that lasts into middle age, and many graduates are forced to put off buying a home and saving for retirement.
Some graduates have it better than others, however. To determine 2021′s cities with the most and least student debt, financial website WalletHub divided the median student loan balance (based on TransUnion data from September 2020) by the median earnings of adults 25 and older with a bachelor’s degree in more than 2,510 U.S. cities. WalletHub considered only the city proper in each case and excluded cities in the surrounding metro area.
Five Georgia cities appear in the top 25 most burdened, with one in the top 10.
Athens, home of the University of Georgia, was found to have the seventh worst burden, at 77.26%. Median student debt for Athens residents was $24,947, and median earnings of bachelor’s degree holders was $32,291.
Not too far behind Athens was Lithia Springs, with the 11th worst burden. Median student debt for Lithia Springs residents was $30,665, and median earnings of bachelor’s degree holders was $42,430. That put the burden at 72.27%.
At No. 16, College Park residents were found to have a burden of 68.71%. Median student debt for College Park was $28,741, and median earnings of bachelor’s degree holders was $41,830.
Snellville was No. 21. With median student debt for Snellville residents at $26,140, and median earnings of bachelor’s degree holders at $38,505, their burden was 67.89%.
At No. 23 was McDonough, with a burden of 67.32%. Median student debt for McDonough residents was $28,381, and median earnings of bachelor’s degree holders was $42,155.
“Around 48% of students say that the biggest lesson they have learned during the COVID-19 pandemic is that they should have emergency savings. Preparing an emergency fund is crucial to soften the blow of unexpected financial difficulties like those during the pandemic, and WalletHub recommends that people try to save up at least nine months’ worth of expenses,” said Jill Gonzalez, WalletHub analyst. “Some of the other big lessons that students have learned during the pandemic are finding a steady job and not going into debt.”
The city with the worst student loan burden was Fernandina Beach, Florida. With median student debt for Fernandina Beach residents at $25,886, and median earnings of bachelor’s degree holders at $31,301, their burden was 82.70%.
Darien, Connecticut, was found to have the least burden, at 14.29%. Median student debt for Darien residents was $19,484, and median earnings of bachelor’s degree holders was $136,300.
“Families need to prepare a budget on what the actual costs are for college,” advised Timothy Wolfe, director of financial aid and scholarships at the University of Nevada. “Just because they are offered the maximum amount of loan each year does not necessarily mean they have to take it all out. They need to consider how much they actually need to finance their college education.”
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