How South Dakota’s Student Debt Crisis Compares to Other States

The Biden Administration’s recent announcement regarding student debt relief thrust the topic into the forefront of the news. Under the program, students awarded Pell Grants and who took out loans from the Department of Education will have $20,000 of debt canceled. Those without a Pell Grant will have $10,000 shaved off their outstanding balances.

According to the Department of Education, federal student loans currently total $1.6 trillion. All told, an estimated 45 million borrowers hold federal student loan debt. The average student loan debt among borrowers stands at $36,200.

Burdened by that much debt, many college graduates are not always able to keep up with monthly payments, but the numbers vary by state. In South Dakota, an estimated 132,000 people have outstanding student loan debt, and of them, 5.2% are at least 90 days past due on payments, compared to 7.5% of borrowers nationwide.

The average outstanding balance among borrowers in South Dakota of $29,800 is lower than the national average and the second lowest among states.

Categories: Local News, National News, South Dakota News