Student Loan Debt Rises Six Percent Since April 2010
Credit Scores Remain Stable Nationally As Consumer Credit Card Debt Continues to Decrease, According to CreditKarma.com
May 11, 2011
Credit Karma (www.creditkarma.com), the consumer's credit advocate, today released its U.S. Credit Score Climate Report with trend data for April 2011. As graduation nears, people can expect to pay more on student loans than a year ago. Nationally, average student loan debt per consumer increased six percent since April 2010 to $29,572. Consumers in 16 states increased student loan debt by more than the national average since April 2010, including:
- Illinois, Kansas, Kentucky and Virginia - increased student loan debt seven percent
- Connecticut, Georgia, Indiana, Tennessee and Washington - increased student loan debt eight percent
- Minnesota - increased student loan debt nine percent
- Massachusetts and North Carolina - increased student loan debt 11 percent
- Maryland - increased student loan debt 12 percent
- Oregon - increased student loan debt 13 percent
- Oklahoma - increased student loan debt 16 percent
- Wisconsin - increased student loan debt 17 percent
Since January 2011, credit scores remain stable nationally at 667 and the average consumer with an account:
- Decreased credit card debt 10 percent to $6,493
- Decreased home mortgage loans one percent to $171,665
- Decreased home equity three percent to $47,943
- Stabilized auto loans at $15,152
"As college tuition costs skyrocket, consumers are forced to take out larger student loans to meet the increase in price," said Ken Lin, CEO of CreditKarma.com. "The data suggests the mounting student loan debt trend will continue if the cost of education continues to steadily rise each year."
Other key findings include:
- Four metropolitan statistical areas (MSAs) increased student loan debt by more than the national average of six percent since April 2010, including Boston, Kansas City, Miami and San Diego.
- California has the highest credit score in the country with an average score of 685. Mississippi remains the state with the lowest credit score at 633.
- Eight states have fair to poor credit scores of 650 or lower, including Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina and West Virginia.
Each month, the CreditKarma.com U.S. Consumer Credit Score Climate Report compares the current credit scores of its user base with previous scores pulled at least 30 days prior and no more than 90 days prior to the stated month. This month's report includes a comparison of more than 192,476 CreditKarma.com user scores.
About Credit Karma
CreditKarma.com is a completely free credit management service that enables consumers to put their credit to work for their overall financial health by providing them with customized savings recommendations. CreditKarma.com's goal is to help its more than 2 million users realize the everyday cost savings of having a good credit score by providing free credit scores, as well as a range of tools to help consumers improve their financial situation.
For more information, visit www.creditkarma.com.
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