Texas Ranks as a Best State for Student Debt Among the $1.12 Trillion Owed Nationwide

 Posted on November 04, 2014 in Student Loans

According to a recent study by WalletHub, the state of Texas ranks as number nine in the list for the “best” student loan debt. WalletHub analyzed all 50 states (including the District of Columbia) using 7 key metrics, including average student debt, unemployment rates, and students with past-due loan balances.

Though nine out of 51 may be good news for the Lone Star State, the rest of the country is not doing as well. As of June 2014, the Federal Reserve Bank of New York, total outstanding student loan debt stood at $1.12 trillion, an increase of $7 billion from 2013.

According to the WalletHub study, though the risk of joblessness declines with the more schooling you have, location also has a large effect on college debt levels. This means that if you live in a city or state where the economy is booming, you are more likely to pay off your student debt on time, without penalties.

While Texas continues on the up and up, other states in the bottom, including Massachusetts (30), Washington D.C. (41), and Rhode Island (51), continue to suffer.

In May 2014, Massachusetts Sen. Elizabeth Warren proposed a bill to allow students to refinance their loans at a lower interest rate called the “Bank on Students Emergency Loan Refinancing Act.” The Democratic senator and her party argued that the $1 trillion in student loan debt is harming the U.S. economic growth and that something must be done to alleviate it. Unfortunately, in September, Republicans opposing the bill struck it down. The Act would have allowed more than 25 million students to refinance their loans to today’s lower interest rates of less than four percent.

For now, it does not seem like student loan debt in any state will be alleviated anytime soon. With the political battle constantly stalling bills able to assist student loan debtors, the educated middle class will only continue to suffer.

If you or your college-aged son or daughter is suffering from crippling student loan debt in Texas, contact an experienced San Antonio bankruptcy lawyer. Attorney Chance M. McGhee can help you determine which bankruptcy option may be best for your individual situation. Call 203-342-3400 for a free consultation.