Student loan balances declined in 43 states over the past year, but the typical American still owes more than $5,000, according to a new Achieve study of Federal Reserve Bank of New York data.
The national average fell 1.8 percent, from $5,560 in the fourth quarter of 2024 to $5,460 in the fourth quarter of 2025. Achieve ranked states by per-person balances among residents with a credit report and compared each with that U.S. average.
Georgia remains first at $7,120 per person, 30.4 percent above the national figure even after a 3.5 percent drop. Maryland ranks second at $6,830. New Jersey is third at $6,540 and was one of only four states where balances rose, up 0.2 percent.
Connecticut, Pennsylvania and Delaware follow. Massachusetts, Mississippi and South Carolina share seventh place at $6,120. Virginia, New York and Louisiana complete the top 10, all still more than 10 percent above the U.S. average.
Wyoming has the lowest burden at $3,180 per person, 41.8 percent below the national average, and posted the steepest decline, 9.9 percent. Hawaii, Alaska and New Mexico also saw drops of at least 6 percent. Utah is the last state below $4,000. West Virginia, Washington, Montana, Idaho, Nevada and Oklahoma fill out the lowest 10.
New Hampshire, Illinois and Rhode Island joined New Jersey among the states with increases. Connecticut, Delaware and Florida were unchanged.
Brad Stroh, Co-CEO and Founder at Achieve, said: “The most noticeable thing here is how widespread the decline has been. Student loan balances came down in 43 states over the year, and nationally the average fell by $100. Only four states recorded an increase.
“But that national decline hides some very big differences between states. Georgia still averages $7,120 per person, while Wyoming is at $3,180. That is a gap of nearly $4,000, so where someone lives is associated with a very different student debt picture.
“Georgia is interesting because it has the highest balance in the country even after seeing a larger-than-average decline. On the other hand, New Jersey is third-highest and was one of the small number of states where balances actually went up. Looking at the direction of travel alongside the total balance gives a much fuller picture.
“The falls at the lower end are particularly striking. Wyoming’s average dropped by almost 10% in one year, while Alaska, Hawaii, and New Mexico all saw declines of at least 6%. The data itself does not tell us exactly what is driving those changes, so it is important not to assume they are all simply the result of borrowers paying down their loans faster.
“For someone carrying student loan debt, the total balance is only one part of the picture. It is worth knowing your interest rate, monthly payment, repayment plan, and how the debt fits alongside other priorities such as credit cards, emergency savings, and retirement contributions. A lower balance is encouraging, but what matters most for an individual household is whether the payments are manageable within the rest of the budget.”
Figures come from the New York Fed Consumer Credit Panel and were rounded to the nearest $10.
