States With Highest Student Loan Defaults Are Nearly All Republican
Summary
The states with the highest rates of student loan defaults in the U.S. are mostly Republican-leaning states. Many borrowers in these states fell behind on payments after pandemic-related student loan relief ended, leading to financial challenges for individuals and local economies.Key Facts
- Mississippi has the highest student loan default rate in the country at 28.3%.
- 14 out of 15 states with the highest default rates voted for President Donald Trump in 2024.
- Student loan defaults increased sharply after federal pandemic relief and payment pauses ended.
- The number of borrowers in default rose from about 5.3 million to 9.5 million since protections expired.
- Borrowers in default owe more than $233 billion in unpaid federal student loans.
- Defaulting on loans reduces credit scores, making it harder to get mortgages or other loans.
- Many states with high default rates have low living costs but still face economic challenges for borrowers.
- Ending the SAVE repayment plan by the Trump administration worsened payment burdens for some borrowers.
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