Utah ranks No. 1 for lowest student loan debt burden, new study says

LOGAN — Utah ranks best in the country for the lowest overall student loan debt burden, according to a recent study from WalletHub.

The study, released this month, considers both the amount of student loan debt and the proportion of students carrying that debt.

Utah has a lower cost of higher education compared to other states, according to Utah State University's Craig Whyte, and when combined with scholarships, grants and other resources, it can help students avoid taking on loans and debt.

"We recognize that there's a lot of perception and conversation regarding affordability and costs in higher ed across the nation," said Whyte, the executive director of USU's financial aid office. "But for those in Utah, we have to first pause and say, in comparison with the nation, our costs are much lower to start with."

Looking for alternatives to loans

Whyte said Utah's lower costs are the result, in part, of efforts by the state Legislature. He said his office works with students to identify resources that do not have to be repaid before considering loans.

"Any resource available to a student that they don't have to pay back. That is the number one priority. Then whatever is left, I think that's where we have real conversations with students on — 'How do you pay for that?'" Whyte said. "The last thing that we want to do is say, 'Fix it with a loan. Take out this big loan and deal with it later.'"

That approach is reflected in the experiences of some USU students who have found other ways to pay for their schooling.

USU senior Marinn Cahoon did not take out student loans. She said students should begin figuring out how they will pay for college before they arrive on campus.

"I think a lot of students do come in and they feel panicked because they don't have a plan. They didn't apply for scholarships. Didn't apply for FAFSA. I didn't know what their options were. And so then they just go for the loans, and then they're stuck with that at the end of the day," she said.

Cahoon said she learned about financial options in conversations with her parents, and she had a financial literacy class in high school that taught about available scholarships and the Free Application for Federal Student Aid program.

Scholarships, work and budgeting

USU sophomore Haven Putnam also did not take out student loans. Her grades and ACT score helped open the door to a presidential scholarship. She said she also works part-time on campus, and budgeting helps her cover the rest of her college expenses.

"Your grades and your ACT score do matter. I work a lot with admissions students, so I get to see that a lot firsthand as well, where I see that impact of the efforts that they put into their high school career and how that changes the routes that they're given in college," Putnam said.

Whyte said students and families should have conversations about the cost of college and the options available to them before borrowing becomes the first solution. For students, he recommends looking at scholarships, grants and other resources first — treating student loans as a last resort. For parents, he said those conversations should begin early in high school.

A link to the 2026 WalletHub Student Loan Study can be found here.

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