HONOLULU (KHON2) – Hawaii has one of the lowest rates of student debt according to one study.
Despite that information, many Hawaii residents with student debt will get $10,00-20,000 taken off in light of Biden’s student debt forgiveness announcement.
WalletHub, a free credit score website, ranked the states with the most student debt and the least student debt.
They used metrics like average student loan debt, grant work opportunities, student work opportunities and more.
According to their study Hawaii came in 49 out of 51 for the lowest portion of students with debt. WalletHub compared all 50 states and the District of Columbia.
Hawaii also came in at 50 out of 51 for having the lowest student debt percentage of income.
WalletHub also looked at the percentage of people who would rather pay off their student loan debt than put money down on a house.
Hawaii was most likely to pay off student debt than put that money towards a down payment for homeownership.
However, homes in Hawaii are at an all-time high with the average single family home costing more than $1,000,000. Some say it would be smarter paying off student loan debt than saving years for a down payment on a million dollar house.
Despite $10,000 getting taken off Hawaii resident’s student loans many people will still have more to pay off.
WalletHub has a student loan debt calculator for people to better understand when they will pay off their student loans.
For someone who has $20,000 in student loan debt with an interest rate of 4.2% they will need to make a minimum payment of $204 to pay off their student loans in 10 years.
Jeff Dew with Brigham Young University said those interested in completing their higher education but worried about the price should do some research.
“In-state universities generally offer quality education for much less than universities outside your state,” said Dew. “Community colleges are a great way to start and may allow you to save money on the first two years of your studies.”
He said for those who are open in vocational work going to a vocational school could be the best investment.
“Vocational schools place a much greater percentage of their students in professional jobs than do universities,” said Dew. “There are many occupations that are suffering massive shortages of workers, but that pays well.”
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For more information about the states with the most and least amount of student loan debt head to WalletHub’s website.