Hawaii ranks among states with lowest student debt

HONOLULU (HawaiiNewsNow) – Hawaii has one of the lowest student debt burdens in the country, according to a new report.

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A September 2026 WalletHub study ranked Hawaii No. 50 overall, meaning only Utah had a lower student debt burden.

The report compared all 50 states and the District of Columbia using 12 measures, including average student loan balances, the share of students with debt and the percentage of loans that are past due or in default.

California, Washington and New Mexico rounded out the five states with the least student debt.

At the University of Hawaii, 80% of first-time undergraduates across its 10 campuses graduated debt-free during the 2024-25 academic year.

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That included 65% of graduates from UH’s four-year campuses and 90% from community colleges.

“Our 10 campuses give local students access to high-quality educational opportunities at an affordable cost,” UH President Wendy Hensel said.

Hensel said 30% of UH graduates pay no tuition and highlighted the number of students completing their degrees without debt.

Nationally, outstanding student loan balances topped $1.72 trillion in the second quarter of 2026, according to the Department of Education.

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That works out to more than $40,000 per borrower across 42.6 million Americans.