Utah Leads The Way In Low Student Borrowing Rates

Utah students carry some of the nation’s lightest student-loan burdens — and the numbers from WalletHub make that plain. In its 2025 ranking of states with the most and least student debt, WalletHub places Utah among the very lowest-burden states: Utah has the lowest average student debt per borrower and the smallest share of students carrying any loan balance. Those strengths put Utah well below most of its Intermountain neighbors when it comes to individual borrowing.

WalletHub evaluated all 50 states plus D.C. on 12 measures — from average student debt to debt as a percentage of income — and found that Utah consistently scores near the bottom of indebtedness (which is good in this study). Utah ranks at or near the lowest for average student debt and for the proportion of students with debt, and it also ranks among the states with the smallest student-debt burden relative to income. In short: Utah students borrow less, fewer Utah students borrow, and what they borrow represents a smaller share of typical earnings.

Comparing Utah Student Debt To Surrounding States

How does Utah compare to nearby states? WalletHub’s state table shows Idaho, Wyoming, Arizona, Nevada, Colorado and New Mexico spread above Utah on the indebtedness scale — meaning those states generally carry higher average debt or a larger share of students with debt. For example, New Mexico and California are also near the low end for average borrower balances, but Utah beats neighboring Arizona, Colorado and Idaho on several measures of individual burden.

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Analysts point to several plausible reasons for Utah’s edge: wider use of accelerated degree pathways, state limits on excess credit hours, and a higher rate of workforce entry or earnings for young adults — all factors that can reduce how much students need to borrow. Whatever the mix, WalletHub’s data make one message clear: Utah students, on average, leave school lighter on student loans than their peers in most other states.