Report: Warwick is the city with the least student debt in R.I.

WALLETHUB RANKED U.S. cities to determine which had the most and least student debt. / COURTESY WALLETHUB
WALLETHUB RANKED U.S. cities to determine which had the most and least student debt. / COURTESY WALLETHUB

PROVIDENCE – Warwick is the least overleveraged city in the Ocean State – and 19th least in the U.S. – when it comes to student debt.

With the college graduation season underway, WalletHub, a personal finance website, compared the average student-loan balance against the median income in each of 2,513 U.S. cities to determine where Americans are the least and most overleveraged on their college-related debts.

In Rhode Island, Warwick’s average student debt totals $26,069, the median income of those ages 25 to 44 is $72,160, and the ratio of student debt to median income of adults ages 25 to 44 is 37 percent.

WalletHub, citing a recent Citizens Bank report, said college graduates spend nearly a fifth, or 18 percent, of their salaries just on student-loan payments. A payoff timeline that creeps into middle age forces many graduates to significantly delay other financial goals such as building an emergency fund, saving for retirement and buying a home, or never realize them at all, WalletHub said.
It also cited the U.S. Department of Education, which reported that 9.6 million of the estimated 22 million Americans with student debt are either delinquent on payments or have stopped paying completely as of the first quarter of 2016.
Providence ranked the lowest among the five Rhode Island cities on the list, coming in 87th nationwide for average student debt of $30,777, median income of those ages 25 to 44 at $41,374 and the ratio of student debt to median income of adults ages 25 to 44 at 74 percent.
Cranston ranked second-best in Rhode Island and 22nd nationwide for its average student debt of $26,646, median income of those ages 25 to 44 at $67,928 and the ratio of student debt to median income of adults ages 25 to 44 at 39 percent. Woonsocket ranked 46th nationwide, for its ratio of student debt to median income of adults ages 25 to 44 at 49 percent, and Pawtucket was 62nd for its ratio at 56 percent.
The most overleveraged city? Voorhees, N.J., where the ratio of student debt to median income was 174 percent. The least? Lake Forest, Ill., for its ratio of 20 percent.

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