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loans are expensive, with Americans owing an average of $1.3 trillion in student loans alone.
A recent news story in the New York Times reported that measures to ensure students pay their student loans on time are becoming stricter. In South Dakota, if people fall behind on student loan debt, they risk getting their driver’s licenses revoked! They can also end up losing camping and parking permits, as well as have fishing and hunting licenses revoked. But what’s student loan debt really like in North Dakota and other states? Read on to find out.
How Bad Is The Situation?
The U.S. state with the highest student debt is New Hampshire, which has an average student loan debt of approximately $32,000. The average student loan debt in North Dakota is approximately $27,000, while in South Dakota it’s an average of $25,000.
When it comes to defaulting on debt, the average default rate in North Dakota is 6.1 percent, while it’s slightly higher at 11.8 percent in South Dakota. Interestingly, although New Hampshire is the state with the highest student debt, it has a student loan default rate of 8.4 percent, which is less than South Dakota’s. According to stats released by Debt.com, the state with the highest student loan default rate is New Mexico, with a rate of 20.8 percent.
One In Four Students Default On Their Student Loans
The U.S. average for defaulting on student loans is one in four. Hawaii is considered the worst state for paying back student loans, ranked at 30 percent on the Student Loan Affordability Index. South Dakota has a ranking of 19.1 percent. (North Dakota was not included in these rankings.)
The Importance Of A Healthy Credit
It’s important for students to ensure that they can pay back student loans as missing payments can damage their credit ranking, making it more difficult for them to get any future loans they need. Sticking to monthly loan repayments will keep students’ credit scores healthy. The use of credit cards aimed at benefiting students can also help them to start building a good credit score. These often come with low credit limits to thwart the accumulation of debt. When combined with regular student loan repayments, this can build a strong financial portfolio.
Students Need To Do Their Research
Not all student loans are created equal. It’s important for students to increase their knowledge of student loans before choosing one. For instance, private student loans usually have high interest rates and borrowers aren’t given the same repayment programs that are based on their income as they are with federal loans. This is an important advantage of federal loans that’s worth considering.
When compared to other states, students in Dakota are struck by some of the largest amount of student loan debt in the country. It’s therefore important for them to conduct research into student loans so that the best, most affordable ones can be picked. Honoring student loan debt is sometimes difficult, but an important part of early adulthood that can set the scene for a healthier, stronger credit rating which will benefit students in both the short and long term.