California has one of the lowest student debt burdens in the country — how that’s possible

In a country sinking in over a trillion dollars of student loan debt, California graduates are managing to stay afloat.

A new analysis from WalletHub ranked the U.S. states from most to least student debt — and it turns out that one of the most expensive places to live in the country is actually catching a break in at least one, key way.

The Golden State ranked 49th least-indebted out of the 50 states and Washington, D.C.

Only Hawaii and Utah fared better.

The ranking can be attributed to one simple reason — an overwhelming 83% of college-age students in the state choose to attend public colleges and universities, according to the latest available statistics.

Between the University of California (UC), California State University (CSU), and California Community Colleges (CCC) systems, there are roughly 150 colleges and universities in the three systems.

And because of reasonable in-state tuition fees for those public institutions, students are also much less likely to have to take out large loans when attending these schools, the numbers show.

In fact, California freshmen are 44% less likely to take out a loan than students in the rest of the country, according to the Public Policy Institute of California.

Less than 40% of freshmen at University of California and California State University students take out loans. The number goes up to 50% for freshmen at private nonprofit colleges and 70% at private for-profit colleges in the state, according to the institute.

Another boon for those going the public route — the state’s Cal Grants, which are financial aid that does not need to be paid back.

Overall, the West Coast fared well in the new ranking — Washington came just below California at 48 and Oregon at 41.

Things appear to get tougher the further you move east. Mississippi, at number one, carries the most student loan debt in the country — over 54% of the median income in the state, according to the analysis.

Unsurprisingly, the state also has the highest rate of default on student loan debt. It also has the third-worst job availability of jobs for students.

To determine their ranking, WalletHub analyzed each state by several factors — including average student debt, the unemployment rate among adults ages 25 to 34, and the share of borrowers with past-due loan balances.

The study used data from the U.S. Census Bureau, Bureau of Labor Statistics, Institute for College Access & Success, Federal Reserve Bank of New York, and more.

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