Best cities for managing student loan debt in 2023

Hartford, CT tops our list

Updated August 25, 2023

Reviewed By Ross Martin

Table of contents:

Cities 1 - 3
Cities 4 - 6
Cities 7 - 10
Methodology

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.

#1: Hartford, Connecticut

Hartford residents have the second lowest student loan balances in the nation, averaging just under $17,000. They're also high earners, taking the top spot for lowest student loan-to-income ratio, which accounts for just 25% of the average annual salary. On top of that, Hartford grads enjoy high credit scores, averaging 725 — that's 11 points higher than the national average.

Hartford by the numbers

Average student loan balance: $16,881
Ratio of student loan balance to income: 25.2%
Average credit score: 725

#2: San Jose, California

San Jose follows closely behind Hartford in terms of both student debt-to-income ratios and balances. Expect a student loan balance of around $17,500 in this city, which only accounts for 26% of the typical annual income. Like Hartford, San Jose residents have an above average credit score of 721, opening the doors to potential interest rate savings when refinancing.

San Jose by the numbers

Average student loan balance: $17,500
Ratio of student loan balance to income: 26%
Average credit score: 721

#3: Providence, Rhode Island

Providence is another place where college graduates are enjoying better terms for managing their student debt. The average student loan balance is $18,800, accounting for 30.5% of the average income. And when it comes time to refinance or apply for other types of financing, Providence residents may access attractive rates thanks to an average 723 credit score.

Providence by the numbers

Average student loan balance: $18,800
Ratio of student loan balance to income: 30.5%
Average credit score: 723

#4: Salt Lake City, Utah (tied)

Salt Lake City ties for fourth place when it comes to juggling student loan debt and other financial responsibilities. The city is home to one of the nation's highest average credit scores, which comes in at 730 — 16 points higher than the average American. Student loan balances are a bit higher at just over $20,000 and those monthly payments will take up a slightly larger piece of the pie. The ratio of student loans to income in Salt Lake City is 35.3%.

Salt Lake City by the numbers

Average student loan balance: $20,118
Ratio of student loan balance to income: 35.3%
Average credit score: 730

#4: Milwaukee, Wisconsin (tied)

Also in fourth place is Milwaukee, whose 735 average credit score is the second highest in the nation. The average college graduate in the city has a current student debt load of $21,000. That accounts for 33.1% of the average annual income.

Milwaukee by the numbers

Average student loan balance: $21,700
Ratio of student loan balance to income: 33.1%
Average credit score: 735

#6: Minneapolis, Minnesota (tied)

Our sixth place slot also comes in at a tie, starting with Minneapolis. The city has the nation's highest average credit score, which is a whopping 742 and 28 points higher than the average American. Graduates have just over $23,701 in student loan debt. But with high wages in the city, this accounts for less than 30% of income.

Minneapolis by the numbers

Average student loan balance: $23,701
Ratio of student loan balance to income: 29.2%
Average credit score: 742

#6: Seattle, Washington (tied)

Seattle also comes with a sixth place finish, thanks to high credit and wages. The average Seattleite has a 735 credit score. Student loan balances hover just under $24,000 but even that above-average number is mitigated by the fact that it only accounts for 26% of income.

Seattle by the numbers

Average student loan balance: $23,914
Ratio of student loan balance to income: 26%
Average credit score: 721

#8: San Francisco, California

With such a heavy presence of tech and startup companies, it's no surprise that San Francisco's student debt-to-income ratio is low at just 26%. While not in the top 10 for credit scores, city residents still have a higher average than most Americans at 721. The average student loan balance in the city is $22,441.

San Francisco by the numbers

Average student loan balance: $22,441
Ratio of student loan balance to income: 26%
Average credit score: 721

#9: Philadelphia, Pennsylvania

Philadelphia earns a spot on our top 10 largely due to the city's average credit score of 723. At $22,601, student loan balances are average compared to other cities we researched. However, Philadelphia residents do enjoy a student debt-to-income ratio of just under 33%.

Philadelphia by the numbers

Average student loan balance: $22,601
Ratio of student loan balance to income: 32.8%
Average credit score: 723

#10: Boston, Massachusetts

Student loan debt in Boston is one of the highest on our list, coming in at just over $27,000. The good news is that college graduates can find well-paying jobs, because the city comes in first place with a student debt-to-income ratio of 25.2%. Plus, the average credit score is 732, which is the fourth highest of all cities we analyzed.

Boston by the numbers

Average student loan balance: $27,223
Ratio of student loan balance to income: 25.2%
Average credit score: 732

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.

Sources