With the average student loan debt climbing to over $39,000 per borrower nationwide, Delaware finds itself among the hardest-hit states. According to a new WalletHub 2025 report on States with the Most and Least Student Debt, Delaware ranks 4th overall in the nation for student loan burden, trailing only Mississippi, New Hampshire, and neighboring Pennsylvania.
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Delaware’s Student Debt Profile
WalletHub evaluated all 50 states and Washington, D.C., across 12 key metrics. For Delawareans, the numbers are sobering:
- 2nd in the nation for highest average student debt
- 12th for the proportion of students with debt
- 11th for student debt as a percentage of income (adjusted for cost of living)
- 11th for the percentage of loans past due or in default
- 9th for the availability of student jobs
- 17th for availability of paid internships
These rankings show that not only are Delaware students graduating with some of the highest loan balances in the country, but repayment is proving difficult for many borrowers.
A Growing Crisis
Student loan debt is the second-largest form of household debt in America, behind mortgages. The U.S. Department of Education reports that as of Q1 2025, outstanding student loans total more than $1.66 trillion, spread across 42.5 million borrowers.
For Delawareans, this means the average young graduate may start their professional life with a financial burden that rivals a car loan or even a small mortgage.
Regional Context
Delaware’s ranking places it alongside other Northeastern states with heavy debt loads. Pennsylvania, which borders Delaware, is ranked 3rd worst in the nation. The region’s high cost of living, combined with expensive private and public universities, makes student borrowing more common and repayment more challenging.
By contrast, states like Utah, Hawaii, and California rank at the bottom of the debt list, showing that student loan pressures vary dramatically by geography.
What This Means for Delaware
The data underscores an urgent need for solutions in the First State:
- Stronger financial literacy programs to help students and families make informed borrowing decisions.
- Expanded paid internship opportunities to ease the transition into the workforce.
- More accessible in-state tuition support to prevent students from relying on excessive borrowing.
- Partnerships between local employers and universities to create pipelines for well-paying jobs after graduation.
The Big Question
For Delaware students and families, the WalletHub findings raise a difficult but necessary question: How can the state better prepare graduates for financial stability when so many are starting their careers under the weight of crushing student debt?
