With graduation season upon us and student debt at a staggering $1.6 trillion, the personal-finance website WalletHub today released a report on the Cities with the Most & Least Student Debt in 2025, along with a nationally representative Student Money Survey. WalletHub’s editors also picked the Best Credit Cards for 2025 Graduates, to help new college and high school grads build credit and maximize savings.
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“College has become much more expensive over the past few decades, with cost increases far outpacing inflation. When you combine that with relatively high interest rates, it’s no wonder that the U.S. has so much student debt. Because of how expensive this debt can be, it’s ideal for students to live in a place where they can maximize their income and put as much money as possible toward finally paying off their education.”
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“Loma Linda, CA is the city with the most student debt relative to its residents’ incomes. The median student loan debt per person in Loma Linda is $42,261, and the median annual income for people with at least a bachelor’s degree is $53,141. The combination of high student debt and a low income means that the average Loma Linda resident has a 79.5% debt-to-income ratio for student loans. The average debt-to-income ratio for student loans is around 32.9% nationwide.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What are the most common mistakes people make when financing their postsecondary education?
“People need to think about the real return on their education dollars. Not everyone will have the same budget or needs. For example, if someone has all the money in the world then they can go where they want and study what they want. It’s still better to go to a good school and get a valuable major, but people who don’t need to borrow have more flexibility. For people with limited budgets, it’s important to see how much financial aid a college will offer. Few students pay the full sticker price of college. Parents’ assets and incomes have an influence, but so does merit. Smart students are in demand at every college and schools will compete with each other to offer the best financial package to smart students. It’s important to know that students can leverage strong financial offers to get more money from a school they want to attend. It’s also important to think about if you intend to go to graduate school. A student with no (or little) undergraduate debt has more flexibility when deciding to attend medical school, law school, etc. If someone doesn’t know what they want, it’s best to spend less money on an undergraduate degree.”
Robert Haywood Scott III, Ph.D. – Professor; Chair in Real Estate Policy, Monmouth University
“The most common mistakes are automatically borrowing the maximum available instead of the amount they actually need and not utilizing the lowest cost loans available (e.g., student loans vs. commercial loans or credit cards).”
Joseph P. Bagnoli, Ph.D. – Vice President for Enrollment; Dean of Admission and Financial Aid, Grinnell College
What should people consider when applying for student loans?
“When applying for student loans it is best to borrow what you genuinely need. Borrow too little and you risk running into financial shortages (not good). Borrow too much and you risk over-burdening yourself with debt (also not good). Be realistic about what you plan to study, for how long, and what you and your family can afford to pay back. There are inexpensive options such as community college for two years then transfer to a four-year school. Go to an in-state school and get as much aid as possible. If you are a strong student, then many private colleges offer excellent discounts that make them comparably priced to state schools (and sometimes less expensive). Communicating with colleges and squeezing out as much financial support as possible takes work, but it is financially valuable.”
Robert Haywood Scott III, Ph.D. – Professor; Chair in Real Estate Policy, Monmouth University
“Federal student loans typically are the lowest cost borrowing option.”
Joseph P. Bagnoli, Ph.D. – Vice President for Enrollment; Dean of Admission and Financial Aid, Grinnell College
What programs or other steps would you recommend to anyone having trouble making their student loan payments?
“If people fall behind on student loan payments often it is possible to put the loans into forbearance. It’s not a permanent fix, but does give someone breathing room if they are sick, become unemployed etc.”
Robert Haywood Scott III, Ph.D. – Professor; Chair in Real Estate Policy, Monmouth University
“Their loan servicer can provide all options for which they qualify, including income-based repayment options, hardship deferment, and forbearance. If navigating options online isn’t clear, call the loan servicer.”
Joseph P. Bagnoli, Ph.D. – Vice President for Enrollment; Dean of Admission and Financial Aid, Grinnell College
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