eCredableThe eCredable bloghttps://ecredable.com/resources/blogHow to buy a house when you have student loan debthttps://ecredable.com/resources/blog/postid/664/how-to-buy-a-house-when-you-have-student-loan-debtHome Buying,Home Mortgage,Home Purchase,Student LoanTue, 31 Aug 2021 09:46:00 GMT<header> <h1><span style="color:#2c3e50;"><span style="font-size:48px;">How to buy a house when you have student loan debt</span></span></h1> </header> <p><img alt="" height="203" onerror="this.setAttribute('data-no-img', true)" sizes="(min-width: 912px) 912px, (min-width: 840px) 420px, 160px" src="https://www.bankrate.com/2019/10/01102158/StudentLoanDebtMortgage.jpg?auto=webp&optimize=high&crop=16:9" srcset="https://www.bankrate.com/2019/10/01102158/StudentLoanDebtMortgage.jpg?auto=webp&optimize=high&crop=16:9&width=912 912w, https://www.bankrate.com/2019/10/01102158/StudentLoanDebtMortgage.jpg?auto=webp&optimize=high&crop=16:9&width=800 800w, https://www.bankrate.com/2019/10/01102158/StudentLoanDebtMortgage.jpg?auto=webp&optimize=high&crop=16:9&width=720 720w, https://www.bankrate.com/2019/10/01102158/StudentLoanDebtMortgage.jpg?auto=webp&optimize=high&crop=16:9&width=600 600w, https://www.bankrate.com/2019/10/01102158/StudentLoanDebtMortgage.jpg?auto=webp&optimize=high&crop=16:9&width=420 420w, https://www.bankrate.com/2019/10/01102158/StudentLoanDebtMortgage.jpg?auto=webp&optimize=high&crop=16:9&width=320 320w" width="320" /></p> <p>Cavan Images/Getty Images</p> <main> Written by  <p>Zach Wichter</p> <ul> <li><time datetime="2021-08-05">Aug. 5, 2021</time>/</li> <li>7 min read</li> </ul> <p>At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict <button data-integrity-button="" data-modal="toggle" data-target="#integrity-modal" id="integrity-button" type="button">editorial integrity</button>, this post may contain references to products from our partners. Here’s an explanation for <button data-modal="toggle" data-target="#money-modal" type="button">how we make money.</button></p>   <p>The majority of millennials don’t own a home — and many say their student loans are a major reason for that. According to a <a data-ctaposition="1" data-linktype="contentInline" href="https://www.bankrate.com/surveys/down-payment-survey-september-2019/">2019 survey from Bankrate</a>, 61 percent of millennials don’t yet own a home, and nearly a quarter of them say student loan debt is what’s holding them back.</p> <p><a data-ctaposition="2" data-linktype="contentInline" href="https://www.federalreserve.gov/publications/2019-economic-well-being-of-us-households-in-2018-student-loans-and-other-education-debt.htm" target="_blank">Data from the </a>Institute for College Access and Success shows that 62 percent of college graduates financed their higher education with loans, and as of 2019, the average balance was $28,950. As of the second quarter of 2021, combined student loan debt amounted to $1.57 trillion, according to the New York Federal Reserve.</p> <p>This debt holds back potential homebuyers in two major ways. First, it raises a prospective <a data-ctaposition="3" data-linktype="contentInline" href="https://www.bankrate.com/mortgages/why-debt-to-income-matters-in-mortgages/">homebuyer’s debt-to-income ratio</a>, which makes it more difficult to secure a mortgage.  Second, it can make it harder to save for a <a data-ctaposition="4" data-linktype="contentInline" href="https://www.bankrate.com/mortgages/what-is-down-payment/">down payment</a>.</p> <p>Despite those obstacles though, student loan debt doesn’t automatically preclude you from buying a house. While it does make the process more challenging, you can become a homeowner with student debt. If you’re looking to buy your first house, but student loan debts are holding you back, this guide can help you navigate the process and come out on top.</p> <h2><span style="color:#0070c9;"><span style="font-size:24px;">Step 1: Improve your debt-to-income ratio</span></span></h2> <p>One of the best things you can do to improve your chances of getting a mortgage loan is to lower your debt-to-income ratio. Your <a data-ctaposition="5" data-linktype="contentInline" href="https://www.bankrate.com/calculators/mortgages/ratio-debt-calculator.aspx">debt-to-income ratio</a> (or DTI) is one of the most important factors a lender will look at when evaluating your application. They want to ensure you’ll be able to afford your new mortgage payment while also staying current on all your existing debts, student loans included.</p> <p>For most mortgage loans, you can’t have a DTI ratio higher than 28 percent going into your application on the front-end in order to be considered a good candidate. On the back-end, which includes your estimated mortgage and housing expense, 36 percent is the maximum for most conventional loans. If you don’t fall under this threshold, there are a few things you can do to improve it:</p> <ul> <li><strong>Pay down your debts as much as possible.</strong> Work on whittling down your student loan debts, credit card debts and other balances. Use your tax refunds, holiday bonuses or any extra funds you have to make a dent. Even a small reduction in balances can help put the percentages in your favor.</li> <li><strong>Increase your income.</strong> If you’ve been at your job a while, you may be able to ask for a raise. If not, a second job, side gig or freelance work can help supplement your income and improve your DTI.</li> <li><strong>Refinance or consolidate your student loans.</strong> Doing this may allow you to lower your monthly payment and the interest you’ll pay over the life of the loan. That will cut your monthly budget and over the long term will improve your DTI in the process.</li> <li><strong>Enroll in an <a data-ctaposition="6" data-linktype="contentInline" href="https://www.bankrate.com/loans/student-loans/income-based-repayment/">income-based repayment plan</a>.</strong> Income-driven repayment plans allow you to lower your monthly student loan payments to align with your current income level. These typically allow you to make payments as low as 10 to 15 percent of your monthly income, and can ease some pressure on your budget.</li> </ul> <p>Don’t know what your current DTI is? Use our <a data-ctaposition="7" data-linktype="contentInline" href="https://www.bankrate.com/calculators/mortgages/ratio-debt-calculator.aspx">debt-to-income ratio calculator</a> to get an idea.</p> <h2><span style="color:#0070c9;"><span style="font-size:24px;">Step 2: Increase your credit score</span></span></h2> <p>Your <a data-ctaposition="8" data-linktype="contentInline" href="https://www.bankrate.com/mortgages/how-your-credit-score-affects-your-mortgage-rate/">credit score</a> also plays a big role in your mortgage application, because lenders use it to evaluate how risky you are as a borrower. A higher score will typically mean an easier approval process and, more importantly, a <a data-ctaposition="9" data-linktype="contentInline" href="https://www.bankrate.com/mortgages/how-to-get-the-best-mortgage-rate/">lower interest rate</a> on your loan.</p> <p>Making consistent, on-time student loan payments is a good way to build credit and increase your score. You can also:</p> <ul> <li><strong>Lower your credit utilization rate.</strong> Your credit utilization rate is essentially how much of your total available credit you’re utilizing. The less you’re using, the better it is for your score. Credit utilization accounts for 30 percent of your total score, and the easiest way to lower your rate is to pay down outstanding debts.</li> <li><strong>Pay your bills on time.</strong> Payment history is another 35 percent of your score, so make sure to pay every bill (credit cards, loans, even your gym bill) on time, every time. Set up autopay if you need to, as late payments can send your score plummeting.</li> <li><strong>Keep paid-off accounts open.</strong> The length of your credit history matters, too, accounting for 15 percent of your score. Leaving long-standing accounts open (even once paid off) can help you in this department.</li> <li><strong>Avoid new credit lines.</strong> Don’t apply for any new credit cards or loans as you prepare to buy a home. These require hard credit inquiries, which can have a negative impact on your score.</li> </ul> <p>Finally, make sure to check your credit report often. If you spot an error or miscalculation, report it to the credit bureau immediately to get it remedied.</p> <p><strong>Also Read:</strong> <a href="https://ecredable.com/resources/blog/does-paying-utilities-build-credit">Does Paying Utilities Build Credit?</a></p> <h2><span style="color:#0070c9;"><span style="font-size:24px;">Step 3: Get preapproved for a mortgage before you house hunt</span></span></h2> <p>Shopping<a data-ctaposition="10" data-linktype="contentInline" href="https://www.bankrate.com/real-estate/what-to-look-for-when-buying-house/"> for that dream house</a> is definitely the most exciting part of the process, but before you can start, you should get <a data-ctaposition="11" data-linktype="contentInline" href="https://www.bankrate.com/mortgages/pre-approval/">preapproved for your mortgage loan</a>. A preapproval lets you know how big a loan you’ll likely qualify for, which can help guide your home search and ensure you stay on budget. Additionally, a preapproval shows sellers you’re serious about a home purchase and may give you a leg up on other buyers.</p> <p>When applying for preapproval, you’ll need to:</p> <ul> <li>Provide information regarding your income, debts, past residences, employment, and more. You will also need to agree to a credit check.</li> <li>Know what <a data-linktype="recirculation" data-navheading="Related Links / Related Articles" href="https://www.bankrate.com/mortgages/how-much-is-a-down-payment-on-a-house/">down payment</a> you can offer. If you’re going to use gift money from a loved one, you’ll need a <a data-linktype="recirculation" data-navheading="Related Links / Related Articles" href="https://www.bankrate.com/mortgages/gift-letter-for-mortgage/">gift letter</a> from the donor saying it doesn’t need to be paid back.</li> <li>Provide some documentation. Your lender will need recent pay stubs, bank statements, W-2s, tax returns and other financial paperwork in order to evaluate your application.</li> </ul> <p>If you want your pre-approval application to go smoothly, go ahead and gather your financial documentation early, and have it ready to go once your lender requests it.</p> <h2><span style="color:#0070c9;"><span style="font-size:24px;">Step 4: Consider down payment assistance</span></span></h2> <p>If your student loans are making it hard to save up that down payment (and you don’t have gift money coming from a family member or other donor), you’re not completely out of luck. There are a number of <a data-ctaposition="12" data-linktype="contentInline" href="https://www.bankrate.com/mortgages/down-payment-assistance/">assistance program</a>s that can help you cover both your down payment and <a data-ctaposition="13" data-linktype="contentInline" href="https://www.bankrate.com/mortgages/what-are-closing-costs/">closing costs</a> on your loan.</p> <p>The assistance usually takes one of four forms:</p> <ol> <li>A down payment grant. These are interest-free and do not need to be repaid.</li> <li>Forgivable second mortgages. These are technically second mortgage loans on top of the one used to finance your house, but are forgiven if you live in the home for a certain number of years.</li> <li>Traditional second mortgage. These programs give you assistance via a low-interest loan and need to be paid off monthly, just as your primary mortgage does.</li> <li>Matched savings programs. These programs encourage you to save up funds in a dedicated down payment savings account. Then, the institution or agency offering the program matches those funds, usually up to a certain threshold.</li> </ol> <p>To qualify for these programs, you might need to:</p> <ul> <li>Be a <a data-linktype="recirculation" data-navheading="Related Links / Related Articles" href="https://www.bankrate.com/mortgages/first-time-homebuyer-loans-and-programs/">first-time homebuyer</a></li> <li>Have an income below a certain threshold</li> <li>Complete a homebuyer education course</li> <li>Be a military member, veteran or public servant (teacher, firefighter, EMT, etc.)</li> <li>Commit to a certain level of savings each month</li> </ul> <p>Agencies may also consider your credit score, debt-to-income ratio and other financial factors when evaluating your application for assistance. The location you’re buying in and its median income could also play a role.</p> <h2><span style="color:#0070c9;"><span style="font-size:24px;">Step 5: Look into first-time homebuyer loans and programs</span></span></h2> <p>In addition to down payment assistance programs, you can also take advantage of one of the many <a data-ctaposition="14" data-linktype="contentInline" href="https://www.bankrate.com/mortgages/first-time-homebuyer-programs-by-state/">first-time homebuyer mortgage programs</a> that are offered by both the federal government and state-based agencies. These programs offer low <a data-ctaposition="15" data-linktype="contentInline" href="https://www.bankrate.com/mortgages/30-year-mortgage-rates/">interest rates</a>, and many have no down payment requirement, which can be an especially big boost if you’re dealing with a heavy student loan burden.</p> <h3>Federal options</h3> <p>Check out the table below for a list of federal first-time homebuyer programs and the specific requirements for each.</p> <h3>State options</h3> <p>Individual states also have their own first-time homebuyer programs and assistance offerings. Many of these help with closing costs, down payments and more. There are also state-backed loan programs that can reduce your interest rate, lower your monthly payment and help you save significantly over the course of your loan if you qualify.</p> <p>You’ll find a full list of state-specific resources at <a data-ctaposition="16" data-linktype="contentInline" href="https://www.hud.gov/buying/localbuying" target="_blank">HUD.gov</a>.</p> <h2><span style="color:#0070c9;"><span style="font-size:24px;">Step 6: Find a co-borrower</span></span></h2> <p>If you have a fellow grad or a friend or family member who also wants to get out of the rent race, teaming up to buy a house could benefit you both. In this scenario, they become your “<a data-ctaposition="17" data-linktype="contentInline" href="https://www.bankrate.com/mortgages/should-you-add-a-co-borrower-to-your-mortgage/">co-borrower</a>,” applying for the mortgage loan jointly with you.</p> <p>The advantage here is that it allows both of your incomes and credit profiles to impact the application. That could mean qualifying for a higher loan balance, an easier approval process or a lower interest rate if they have a solid financial foundation. You can also pool your savings for a bigger down payment — another step that will lower your monthly housing costs and save you big on long-term interest.</p> <p>Keep in mind though: If you apply with a co-borrower, their debts and credit score also count toward your application. So, it might not be helpful if their financial position isn’t strong.</p> <p>If you don’t want to outright purchase a house with someone else, you could also ask a friend or relative to become a co-signer or guarantor on your loan. This would allow lenders to consider their income and credit on your loan application, but it wouldn’t actually give them ownership of the property.</p> <h2><span style="color:#0070c9;"><span style="font-size:24px;">Bottom line</span></span></h2> <p>Student loan debt can be a drag, especially if you’re trying to buy a house. Fortunately, there are options. By taking advantage of the right loan programs, working on your credit and DTI, and teaming up with the right partners, you can improve your chances significantly, not to mention lower the cost of buying a home both upfront and for the long haul.</p> <h3>Learn more:</h3> <ul> <li><a data-linktype="recirculation" data-navheading="Related Links / Related Articles" href="https://www.bankrate.com/mortgages/first-time-homebuyer-guide/">First-time homebuyer guide</a></li> <li><a data-linktype="recirculation" data-navheading="Related Links / Related Articles" href="https://www.bankrate.com/mortgages/first-time-homebuyer-mistakes/">First-time homebuyer mistakes to avoid</a></li> <li><a data-linktype="recirculation" data-navheading="Related Links / Related Articles" href="https://www.bankrate.com/mortgages/get-a-mortgage-with-bad-credit/">How to get a mortgage with poor or bad credit</a></li> </ul> </main> <section> <p>Written by</p> <p>Zach Wichter</p> <p>Mortgage reporter</p> <p><a aria-label="Twitter profile" href="https://twitter.com/zlwichter" rel="noopener nofollow" target="_blank"><img alt="Twitter" height="32" loading="lazy" src="https://www.bankrate.com/content/svg/twitter.svg" width="32" /></a><a aria-label="Email" href="mailto:zach.wichter@bankrate.com" rel="noopener nofollow" target="_blank"><img alt="Email" height="32" loading="lazy" src="https://www.bankrate.com/content/svg/email-icon.svg" width="32" /></a></p> <p><a href="https://www.bankrate.com/authors/zach-wichter/">Read more From Zach</a></p> <p>Zach Wichter is a mortgage reporter at Bankrate. He previously worked on the Business desk at The New York Times where he won a Loeb Award for breaking news, and covered aviation for The Points Guy.</p> <p>Edited by</p> <p><a href="https://www.bankrate.com/authors/suzanne-de-vita/">Suzanne De Vita</a></p> <p>Mortgage editor</p> </section> 664Places With the Most Student Debthttps://ecredable.com/resources/blog/postid/630/places-with-the-most-student-debtGeneralStudent LoanWed, 11 Mar 2020 14:25:54 GMT<p><span style="color:#2c3e50;"><strong><span style="font-size:48px;">Places with the Most Student Debt</span></strong></span></p> <div class="content-parent author"> <div class="content-child"> <p class="fs-14 nomargin"><span class="allcaps" itemprop="author"><strong><img class="author-avatar image-left" itemprop="image" src="https://www.lendingtree.com/content/uploads/2018/03/Kali_McFadden-70x70.jpg" /> </strong></span></p> <p class="fs-14 nomargin"><span class="allcaps" itemprop="author"><strong>Kali McFadden</strong></span></p> <p class="fs-14 nomargin"><span class="nomargin gray fs-12" itemprop="datePublished">May 30th, 2018</span></p> </div> </div> <p> </p> <div itemprop="articleBody"> <p><span style="color:#0070c9;"><strong><span style="font-size:24px;">U.S. student loan debt hit the $1.5 trillion mark earlier this year, but Southerners appear to be shouldering more than their share.</span></strong></span></p> <p>Student loan debt has been growing for millions of Americans over the last two decades and doesn’t seem to be slowing down. The cost of a four-year education has grown fivefold in that time, and Pew Research Center reports that 37% of adults under the age of 30 carry some kind of student debt. Altogether, Americans owe $1.5 trillion in student debt, a jump from about $600 billion a decade ago.</p> <p>Incurring student debt isn’t necessarily a bad thing, and the return on investment — for those who leave school with degrees that are valued in the marketplace — is generally well worth it. The biggest problems tend to arise when people take on debt to attend programs they don’t complete or aren’t properly accredited or are generally unethical.</p> <p>That said, not all student loans are alike, and the smallest amount of debt possible is always best. Rates and terms vary, especially between private loans, and students should consider <a href="https://www.lendingtree.com/student/">shopping around</a> for the best deal. Those who are currently struggling with student loan debt may have some options for relief, including <a href="https://www.lendingtree.com/student/refinance/">refinancing options</a> and even <a href="https://www.lendingtree.com/student/student-loan-forgiveness-guide/">debt forgiveness programs</a>.</p> <h2><span itemprop="articleBody"><span style="color:#0070c9;"><strong><span style="font-size:24px;">Key takeaways:</span></strong></span></span></h2> <ul> <li style="list-style-type: none;"> <ul> <li>Washington, D.C., ranks first among metros with the highest median student loan balances where almost 10% of loan holders owe more than $100,0000.</li> <li>McAllen, Texas ranked last with a median student loan balance 43% lower than Washington’s.</li> <li>People in Southeast metros carry the most student loan debt, with nine of the top 10 metros below the Mason-Dixon line.</li> <li>Seven out of the top 10 metros are state capitals (including the nation’s capital, in the case of Washington).</li> <li>On average, people have balances on three to four student loans.</li> </ul> </li> </ul> <h2><span itemprop="articleBody"><span style="color:#0070c9;"><strong><span style="font-size:24px;">Places that owe the most in student loans</span></strong></span></span></h2> <script id="infogram_0__/epz5O11z38Dtdtg6Z6gc" title="PMSL - Chart 1" src="https://e.infogram.com/js/dist/embed.js?ww9" type="text/javascript"></script><br /> <strong><span style="font-size:16px;">1 – Washington, D.C.</span></strong></div> <div itemprop="articleBody">One in two people over the age of 25 has a postsecondary degree in the Washington, D.C. metro, which is significantly higher than the 30% of all Americans who have earned a bachelor’s or higher. Even more significant: Nearly one out of four have professional or graduate degrees, more than double the national rate of 11.5%. This helps explain why Washington also has the highest percentage of student debt holders who owe more than $100,000. That doesn’t mean these borrowers are necessarily in financial crisis though, because most completed their degrees and are earning accordingly. While 21% of Americans left college before finishing, and thus are perhaps paying off debt that hasn’t earned them any returns, the same is only true for 16.8% of those residing in and around the nation’s capital.</div> <p><span itemprop="articleBody"><strong><span style="font-size:16px;">2 – Atlanta</span></strong></span><br /> <em>Median balance: $22,232</em><br /> Atlanta is another city of the highly educated — 37% of Atlanta residents ages 25 and over have completed at least a four-year education, and more than 13% have a graduate or professional degree, which is higher than the nation as a whole (11.5%). But it doesn’t completely explain why about 9% owe more than $100,000, when the average of the metros we reviewed is 6%. The metro is home to a plethora of higher learning institutions including Emory University, Atlanta’s John Marshall Law School, Morehouse College, and Spelman College. Perhaps the need for so many professors helps to explain why Atlanta is more educated — and in more student debt — than the nation as a whole. Unfortunately, one in five Atlanta residents left college before finishing a degree, which is in line with the rest of the country.</p> <p><span itemprop="articleBody"><strong><span style="font-size:16px;">3 – Richmond, Va.</span></strong></span><br /> <em>Median balance: $21,915</em><br /> Nearly identically to Atlanta, 34% of residents of Virginia’s state capital age 25 and up have earned at least a bachelor’s degree, and 13% have earned a graduate or professional degree, with 21% leaving school without a degree. In addition to state government, Richmond is home to a federal appeals court, a Federal Reserve bank, headquarters for banks such as Union Bank & Trust and large law firms that attract highly-educated, professional workers. Despite all of those law degrees, only 7.7% owe more than $100,000 on their student loans, which is closer to the 6% average we saw for all 100 metros than compared with Washington’s 9.8%.</p> <p><span itemprop="articleBody"><strong><span style="font-size:16px;">4 – Raleigh, N.C.</span></strong></span><br /> <em>Median balance: $21,357</em><br /> The fourth metro on our list is also the fourth capital. Raleigh famously sits in North Carolina’s Research Triangle, known as such because of the three major research institutions (Duke University, University of North Carolina and North Carolina State University), and the companies headquartered nearby to take advantage of the highly-educated workforce. It’s no surprise then that 44% of Raleigh’s residents have a bachelor’s and 16% have an advanced degree. The rate of people who leave college before leaving is somewhat lower than the national average, at 19%. However, 8.7% owe more than $100,000 on their student loans.</p> <p><span itemprop="articleBody"><strong><span style="font-size:16px;">5 – Akron, Ohio</span></strong></span><br /> <em>Median balance: $21,037</em><br /> The first metro on our list north of the Mason-Dixon Line (and not a capital), Akron’s education rates mirror the nation’s — 30% of residents over the age of 25 have at least a bachelor’s, 11% have a graduate or professional degree, and just under 20% left school before completing a degree. Akron is a manufacturing hot spot (including Goodyear tires), which means a lot of chemists, many of whom have studied at the College of Polymer Science and Polymer Engineering at the University of Akron. We found that 6.5% of residents owe more than $100,000.</p> <script id="infogram_0__/lmsponGYQL6tncJOVQLp" title="PMSL -Table 1" src="https://e.infogram.com/js/dist/embed.js?HFV" type="text/javascript"></script> <h2><span itemprop="articleBody"><span style="color:#0070c9;"><strong><span style="font-size:24px;">Places where people owe the least</span></strong></span></span></h2> <script id="infogram_0__/YZIEpwjq7YGgKPdSzEwk" title="PMSL - Chart 2" src="https://e.infogram.com/js/dist/embed.js?JI1" type="text/javascript"></script> <p><span itemprop="articleBody"><strong><span style="font-size:16px;">100 – McAllen, Texas</span></strong></span><br /> <em>Median balance: $13,017</em><br /> There’s a pretty good reason why residents of McAllen don’t carry much student debt: few of them go to college. Only 17% have a bachelor’s and 5% have a graduate degree. While the number of people who have some college is 3% less than the nation as a whole, it should be lower, given how few people complete school relative to the rest of the country. Only 3.3% owe more than $100,000, which is the lowest among the metros we reviewed.</p> <p><span itemprop="articleBody"><strong><span style="font-size:16px;">99 – Fresno, Calif.</span></strong></span><br /> <em>Median balance: $13,808</em><br /> Close to 20% of people age 25 and over in Fresno has a bachelor’s degree, and 7% have graduate and professional degrees. Unfortunately, 23% have taken some college courses without attaining a degree, which means that despite the low balances — only 4.4% owe more than $100,000 — those who owe on their student loans may be in a terrible position to pay it.</p> <p><span itemprop="articleBody"><strong><span style="font-size:16px;">98 – Springfield, Mass.</span></strong></span><br /> <em>Median balance: $14,615</em><br /> At 31%, Springfield is in line with the rest of the country in terms of the number of people who have a bachelor’s degree, and actually has more people with graduate degrees (14%) than the nation’s average so it’s a bit of a mystery why residents owe so much less than elsewhere. Fewer people are holding large amounts of student debt, too — only 4.8% owe more than $100,000. Moreover, Springfield sits in the so-called Knowledge Corridor, an area surrounded by many universities. Maybe it’s because 18% left college before finishing, lower than the national 21%, but more than Washington, D.C.</p> <p><span itemprop="articleBody"><strong><span style="font-size:16px;">97 – Bakersfield, Calif.</span></strong></span><span itemprop="articleBody"><strong><span style="font-size:16px;"></span></strong></span><br /> <em>Median balance: $14,656</em><br /> An agricultural community, only 16% of Bakersfield’s resident's ages 25 and over have a bachelor’s and 5% have graduate degrees, which is less than half the rate of the United States as a whole. But that doesn’t mean residents haven’t pursued higher education: 24% attended college without obtaining a degree, which is higher than the national rate of 21%. We found that 4.8% of people with student loan debt owe more than $100,000.</p> <p><span itemprop="articleBody"><strong><span style="font-size:16px;">96 – Providence, R.I.</span></strong></span><br /> <em>Median balance: $15,025</em><br /> In this Ivy League city home to Brown University, 30% of people over the age of 25 in the metro have a bachelor’s, and 12% have graduate degrees, which is a bit higher than the nation as a whole, but generally in line. We found that 18% have taken some college courses without finishing a degree, which is about 3% lower than the country as a whole and may explain why debts are relatively low.</p> <script id="infogram_0__/wYTGgb76zAUcnO97RYH5" title="PMSL - Chart 4" src="https://e.infogram.com/js/dist/embed.js?XQY" type="text/javascript"></script> <p><span itemprop="articleBody"><strong><span style="font-size:16px;">Methodology:</span></strong></span><br /> We looked at a sample of anonymized users who logged into My LendingTree in the first quarter of 2018 and calculated how many of them had student loans, as well as the other reported statistics related to their balances. In the event that someone logged in multiple times, we used their most recent report. These results were then aggregated to the 100 largest metropolitan statistical areas by population. My LendingTree has more than 8 million users. Credit report information is provided by TransUnion.</p> <p>Additional data regarding educational attainment is from the U.S. Census Bureau’s 2012-2016 American Community Survey 5-Year Estimates “Educational Attainment” table, available <a href="https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_16_5YR_S1501&prodType=table">here</a>.</p> <p> </p> <p> </p> 630