Residents of Maryland and Virginia are deeper in debt than most of the rest of the nation, a new report shows.
Maryland residents have the nation’s highest student loan debt, with Virginia following close behind with the sixth-highest student debt average. The two states are also among the top 10 in credit card and mortgage debt, according to Credit Karma, a consumer credit management company.
Marylanders with outstanding student loan debt carried an average balance of $33,087 in May, compared with the national average of $29,088. Virginia’s students and graduates owed an average of $30,855.
| Student loan debt, average owed: |
| 1. Maryland $33,087 |
| 2. New York $32,419 |
| 3. Georgia $32,208 |
| 4. Massachusetts $32,205 |
| 5. New Jersey $2,855 |
| 6. Virginia $30,855 |
| National average: $29,088 |
| Mortgage Debt, average owed: |
| 1. Hawaii $307,266 |
| 2. California $306,988 |
| 3. Maryland $241,209 |
| 4. New Jersey $232,077 |
| 5. Massachusetts $222,431 |
| 6. Virginia $209,237 |
| National average: $167,485 |
| Credit Card debt, average owed: |
| 1. Arkansas $7,307 |
| 2. Hawaii $7,250 |
| 3. Connecticut $7,045 |
| 4. New Jersey $6,723 |
| 5. New Hampshire $6,707 |
| 6. Virginia $6,340 |
| 7. Maryland $6,336 |
| National average: $5,637 |
The data reflect a slight decrease from what students owed in April and at the same time last year. But economists say debt levels are likely to increase soon because of a federal program that would give students more time to pay back their loans.
“The Obama administration is currently trying to make it easier on consumers to manage student debt, capping repayments for federal Stafford loans at 10 [percent] instead of 15 percent of disposable income for those making on-time payments,” said Credit Karma CEO Ken Lin. “While this can help consumers manage debt, this means that the average student loan debt will likely increase as students take more time to pay back loans.”
Maryland ranks third nationally in mortgage debt, behind only Hawaii and California. Maryland homeowners owe an average of $241,209 — 70 percent higher than May’s national average. Virginia homeowners owed an average $209,237, ranking sixth in the U.S. — up one spot from April.
Credit card debt for residents of both states averaged approximately $6,340, which is $704 higher than the national average.
Maryland and Virginia’s top rankings are likely a result of the states’ large population of high-income earners, economist said.
The median household income is $71,000 in Maryland and $61,000 in Virginia, compared to the national average of $52,000, according to Census data.
