With graduation season upon us, it's sobering to know that nearly a fifth of millennials’ salaries will go toward student-loan payments, and more than half of all student-loan debtors are currently delinquent, according to a recent report -- 2016 Report on the Cities with the Most Student-Loan Debt -- by the free-credit-score website WalletHub.
The good news? It seems that students in Scarsdale, Bronxville, and Darien, Conn., are pretty savvy when it comes to knowing how to stay out of debt, ranking in the Top 10 cities of students with the least overleveraged credit.
According to the Department of Education, about 9.6 million of the estimated 22 million Americans with student debt are either delinquent on their payments or have stopped paying completely. And three in five graduates, who belong to the millennial generation, expect to keep paying their college loans into their 40s.
The top cities with the most overleveraged students?
- Voorhees, N.J.
- Opa-locka, Fla.
- College Park, Ga.
- Bastrop, La.
- Selma, Ala.
- East St. Louis, Ill.
- Natchez, Miss.
- Palatka, Fla.
- Darlington, S.C.
- Loma Linda, Calif.
In order to identify the cities that are most overleveraged on their student-loan debts, WalletHub’s analysts divided the average student-loan balance by the median income of residents aged 25 to 44 in each of 2,513 U.S. cities.
They then assigned 100 points to the city with the highest ratio of student debt to income and 0 points to the city with the lowest.