The states where borrowers owe the most in federal student loans, ranked by average balanceNEWS | 05 October 2026For millions of Americans, the cost of a college education doesn't end after graduation.
As of June 30, 42.3 million people held more than $1.72 trillion in outstanding federal student loans, according to the Department of Education.
With the yearly sticker cost of attending some colleges surpassing the six-figure mark, many students and families turn to loans that can take years — or even decades — to repay.
Across the country, federal student loan borrowers carry an estimated average balance of $40,768 according to Business Insider's analysis of the latest federal portfolio data released by the Department of Education.
The Department of Education reports the total outstanding federal loan balances and the number of borrowers by their current state of residence. Business Insider reviewed the department's latest release and ranked all 50 US states by the average balance owed by borrowers living in each state.
While the federal data doesn't reflect the colleges borrowers attended, where they took out their loans, or how much students currently borrow, it shows where borrowers live now and how the federal student loan portfolio is spread across the nation.
See how every state compares — and where borrowers owe the most on average.Author: Kristine Villarroel. Source
