New Yorkers Are in More Student Loan Debt Than Most of America

Student loan debt is one of the biggest financial burdens that younger generations are facing today in New York and around the country. As tuition prices continue to climb with no cap in sight, we can expect future generations of students to continue to sink into a similar or worse debt situation.

Changes in the Cost of Tuition for Students in the United States

According to the National Center for Education Statistics (NCES), the cost of college tuition has increased every single year since 1982. The most dramatic increase in college tuition occurred between 2000 and 2021 when the cost of tuition and fees grew by 65%.

That 65% is after inflation was taken into account.

As all students know, tuition is only a piece of the financial pie. When looking into other fees like room & board over the same 21-year period, that fee grew by 44%. And while room & board is the "cheaper" fee these days, that wasn't always the case.

The NCES shared that tuition used to cost less than room & board prior to the year 1999. It wasn't until 2002 that the tuition portion of college fully eclipsed the price of room & board on a national level.

Which States Have the Highest Student Loan Debt?

Education Data dove into federal student loan debt by state this past October (2024) and examined which states bear the heaviest financial burdens after gaining a college education.

The data showed that students in South Dakota, Iowa, and North Dakota have the lowest average student loan debt with the average borrower debt sitting between $29,647 and $30,925. And that's the lowest average in the country.

The 3 states where borrowers have the highest average student loan debt are Georgia and Maryland with D.C. claiming the top spot in the country. Georgia averages $42,026 in borrower debt, Maryland has an average of $43,692, and D.C. has an average of $54,795 in borrower debt.

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Keep in mind, this data is only factoring federal student loans and not any other private loans that students also may be taking out on top of these.

After D.C. Maryland, Georgia, Virginia, Florida, Illinois, South Carolina, and North Carolina sits New York State, ranking us 9th in the country. The average borrower debt for New York is $38,690.

Education Data also shares that there are approximately 2,439,900 student loan borrowers in New York with over 50% of them being under the age of 35 (53.9% to be exact).

Student Loan Debt's Impact on the Economy

In 2023, Education Data shared findings that found what most could probably infer. The more student debt a person holds, the less spending they do in their local economies.

On top of that, they found that people who owe more than $30,000 in student debt (which even states like South Dakota with the lowest average borrower debt falls into) are 11% less likely to start a new business, and those odds only get worse and the debt increases, causing a shortage of new business loans and new businesses in general.

To sum up Education Data's 2023 report, "The effect student loan debt has on the economy is similar to that of a recession, reducing business growth and suppressing consumer spending."

Student Debt Relief

The Biden administration ran on the promise of student loan forgiveness. And while attempts at mass forgiveness were shut down in a 6-3 decision by the Supreme Court, the Biden administration did forgive the student loans of more than 4.8 million Americans.

As for the future of student loan forgiveness, the Trump administration has historically not favored any form of mass forgiveness.

SEE ALSO: 14 Celebrities Who Are Actually SUNY Alumn

According to sources including Forbes and CNBC, it is likely that the Trump administration will aim to reverse and repeal smaller-scale loan forgiveness attempts by the Biden administration citing the already on-hold SAVE plan and making changes to the income-driven repayment plans.