Despite being an expensive state, California boasts one of the nation's lowest student debt burdens, ranking 49th least-indebted. This is primarily due to the vast majority of students choosing affordable public colleges and universities.
California graduates are remarkably managing to avoid the nation's trillion-dollar student loan debt crisis, with the state ranking 49th least-indebted out of all U.S. states and Washington, D.C., according to a WalletHub analysis. This surprising achievement in one of the country's most expensive places to live is largely attributed to the fact that an overwhelming 83% of college-age students in California opt for public colleges and universities. The state's extensive public systems, including the University of California (UC), California State University (CSU), and California Community Colleges (CCC), offer reasonable in-state tuition fees. As a result, California freshmen are 44% less likely to take out student loans compared to the rest of the country. Less than 40% of freshmen at UC and CSU schools take out loans, a stark contrast to 50% at private nonprofit and 70% at private for-profit colleges within the state. Additionally, state-funded Cal Grants, which are non-repayable financial aid, further reduce the need for borrowing. The West Coast generally performed well, with Washington at 48th and Oregon at 41st. In contrast, states further east, like Mississippi (ranked number one for most debt), face significantly higher student loan burdens and default rates. WalletHub's ranking considered factors such as average student debt, unemployment rates among young adults, and the share of borrowers with past-due loan balances, utilizing data from various federal and institutional sources.
