South Carolina Ranks 5th in National Student Debt Report: High Burden on Graduates

With student loan debt in the United States now exceeding $1.6 trillion, a new report from WalletHub highlights the states and District and Columbia where borrowers face the most financial challenges. South Carolina emerged as one of the states with the highest levels of student debt, ranking 5th overall in WalletHub’s comprehensive analysis for 2024.

WalletHub’s study evaluated all 50 states and the District of Columbia using 12 critical metrics, ranging from average student loan balance to unemployment rates among young adults, and the proportion of students with past-due loan balances. The findings provide a detailed picture of where student debt is most burdensome and offer insights into the broader economic impact.

Key Findings for South Carolina:

• Overall Rank: 5th

• Average Student Debt: 11th

• Proportion of Students with Debt: 12th

• Student Debt as a Percentage of Income (Adjusted for Cost of Living): 4th

• Percentage of Student Loans Past Due or in Default: 14th

• Availability of Student Jobs: 20th

• Availability of Paid Internships: 17th

• Grant Growth: 28th

Implications of the Findings

South Carolina’s high ranking in student debt burden underscores significant financial challenges for its graduates. The state’s 4th place ranking for student debt as a percentage of income, when adjusted for cost of living, suggests that many graduates struggle to manage their loan repayments relative to their earnings. Additionally, the state’s 14th place ranking for the percentage of loans past due or in default indicates a notable proportion of borrowers facing repayment difficulties.

Despite these challenges, South Carolina offers some relief in terms of job opportunities for students. The state ranks 20th for the availability of student jobs and 17th for paid internships, providing some pathways for students to earn income while completing their studies.

However, South Carolina’s 28th place ranking for grant growth indicates limited progress in expanding financial aid options, which could help reduce the reliance on loans. Increasing grant availability could be a crucial step in alleviating the student debt burden in the state.

States With the Most Student Debt