Outstanding student loan debt is more than an inconvenience or even a hindrance to getting ahead. A new report from the Consumer Financial Protection Bureau finds that student loan debt is forcing millions of people to go without basic necessities like food and medicine.
That’s the case for around one-third of federal student loan borrowers. 44% are delaying home purchases because of their debt and 26% are delaying starting a family.
Defaulting on student loans can do enormous damage to financial futures. The ripple effect on communities can also be severe.
Personal finance website WalletHub wanted to find out which communities are at greatest risk of economic harm due to student loan debt. The researchers analyzed delinquency rates from the third quarter of this year and developed the following list of cities with the highest student loan delinquency rates:
1. New Orleans, AZ
2. Chandler, AZ
3. Bakersfield, CA*
4. Pittsburgh, PA
5. Baltimore, MD
6. St. Louis, MO
7. Lubbock, TX
8. Plano, TX
9. Gilbert, AZ
10. Durham, NC
The cities with the lowest student loan delinquency rates, according to WalletHub, are:
91. Tucson, AZ
92. Las Vegas, NV
93. Hialeah, FL
94. Norfolk, VA
95. Lincoln, NE
96. Chesapeake, VA
97. Corpus Christi, TX
98. Glendale, AZ
99. Irvine, CA*
100. Santa Ana, CA*
The federal government estimates that American borrowers hold a total of $1.6 trillion in student loan debt.
Read the full report from WalletHub here.