It's finally happening: the pause on federal student loan payments and interest accrual is finally coming to an end. This relief package has been continually renewed since enacted at the start of the COVID-19 pandemic. But starting September 1, 2023, interest will begin accruing on federal student loan accounts and payments due dates will resume in October[1].
In light of this news, The Zebra set out to find the best cities for managing student loan debt by analyzing the 50 most populous cities in the U.S. using three financial data points:
- Average student loan balance: Whether it's from lower tuition amounts or higher wages, this reveals in which cities residents are resuming payments on lower balances[2].
- Ratio of student loan balance to income: This shows the ratio of the median student loan balance compared to the median income for degree holders. The lower the balance compared to income, the more spending power you have[3].
- Average credit score (by state):
As federal payments and interest accrual begin to resume, here are the top 10 cities where people are tackling their debt.
Methodology
The Zebra pulled three data points to analyze the top 50 MSAs (by population) in the U.S. related to student loans, income and credit.
- Average student loan balance (WalletHub)
- Ratio of student loan balance to income (Magnify Money)
- Average credit score (by state) (Experian)
MSA data was used where applicable, and we sometimes substituted city or state data as necessary.