JACKSON, Miss. ( WJTV ) – College degrees are often an expensive pathway to economic stability, but a recent report reveals that it is lower on average for Mississippians.

Nationally, 42.2 million Americans owe a collective $1.61 trillion in student loans. On average, that is over $38,000 of debt for each borrower. The median student loan payment nationally is $178 a month. According to WalletHub, it is $142 in Mississippi, the lowest amount nationally .

The impact of this amount is still likely large for most Mississippians. The state also has the lowest real median household income. Mississippi residents on average also have the lowest credit score, the second-highest share of debt in proportion to median earnings and the fourth-highest credit card usage rate.

WalletHub recommends the following to pay off student loans faster:

• Check with your employer
  • Some employers will offer perks to employees who further their education. Check and see if your employer offers any tuition reimbursement programs that could help you pay down your debt.
• Increase your income
  • You may be able to add some additional cash flow with a part-time job or side hustle.
• Make a budget
  • Look at where you are spending your money and see where you can cut back to afford your student loan payment. Once you have a plan in place, follow it as best as you can and review it periodically for additional cost-cutting opportunities.
• Make your payments on time
  • On-time payments will help you avoid unnecessary fees or additional interest charges. If you have some extra cash, you should prioritize paying down your most expensive debts and not necessarily your student loans.
• Refinance your student debt
  • If you have a good or excellent credit score, you could transfer some of your student debt to a credit card with a 0% intro APR to stop interest from accruing and pay off what you owe earlier.
• Research loan forgiveness and repayment programs
  • These programs may help eliminate some or all of your student loan debt. Some professions, such as teachers, doctors, nurses and other medical professionals, qualify for unique forgiveness programs.

The Biden administration announced in late February that nearly 153,000 borrowers nationwide will receive $1.2 billion in forgiveness under President Biden’s Saving on a Valuable Education (SAVE) Plan. This includes $13.3 million in debt for 1,790 borrowers in Mississippi. Servicers started processing this forgiveness in February.

In a larger loan forgiveness plan struck down by the Supreme Court in 2023, 40 million borrowers would have received $430 billion in student loan forgiveness. The plan would have canceled up to $20,000 in loans for Pell Grant recipients and $10,000 for other borrowers if the individual’s income was below $125,000.

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