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SALT LAKE CITY — With another college semester fast approaching, Utah is ranked No. 1 in having the lowest average student debt in the nation, a recent WalletHub study says.
The cost and worth of a college degree can depend on which state students graduate from, the study from the personal finance website found. Except for mortgages, student loans make up the largest part of household debt for Americans.
Yet many graduates learn the hard way that a college degree doesn't guarantee financial security when they enter the labor market.
The study also found that Utah, along with Nebraska, has the lowest unemployment rate for adults ages 25-34.
Utah graduates ranked second for having the lowest percentage of income going toward student debt, the WalletHub study found. Utah also placed in the top five of the 50 states and the District of Columbia for having the lowest percentage of student-loan borrowers over 50 years old.
Only about half of Utah college students graduate with student loans, the Utah System of Higher Education reported last year, compared to 7 in 10 students nationally.
The report also found the average Utah student loan debt is $22,418, less than the national average of $28,400.
Student-loan borrowers usually fare better in strong-economy states, WalletHub reported, and Utah has the best economy in the nation, according to another WalletHub study.
Utah students are also less likely to miss loan payments. Only 9.8 percent of indebted college graduates in Utah defaulted on student loans between 2011 and 2013, compared to 13.7 percent nationally, according to the Utah System of Higher Education report.
But even with the challenges of student debt, graduates with more education still earn more than others without college degrees.
Utahns with bachelor's degrees earn 55 percent more than others with only a high school degree, according to the Utah Department of Workforce Services report earlier this year.
In other words, getting an education in Utah is a good choice. More college education can mean more debt for students, but eventually graduates can come out on top.
