Hawaiʻi ranks No. 2 in the nation for lowest student debt

News Release from University of Hawaiʻi, Sep 18, 2026

Hawaiʻi borrowers carry less student debt than those in nearly every other state, earning the state the nation’s second-lowest student debt ranking according to a September 2026 WalletHub report. 

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

Hawaiʻi ranked No. 50 overall. Only No. 51 Utah had a lower student debt burden. California, Washington and New Mexico rounded out the five states with the least student debt.

“Our 10 campuses give local students access to high-quality educational opportunities at an affordable cost,” said UH President Wendy Hensel. “Through affordable resident tuition, need-based financial aid and pathways across our statewide system, we are working to help students earn a degree without being weighed down by debt.”

Graduating debt-free

At UH, 80% of first-time undergraduates across 10 campuses graduated debt-free during the 2024–25 academic year. That included 65% of graduates from UH’s four-year campuses and 90% from community colleges.

Mississippi had the nation’s highest student debt burden, followed by Delaware, Pennsylvania, South Carolina and West Virginia.

Outstanding student loan balances exceeded $1.72 trillion in the second quarter of 2026, according to the Department of Education. That amounts to more than $40,000 per borrower across 42.6 million Americans.

Link to video and sound (details below): https://go.hawaii.edu/RUQ

SOUNDBITES -- Wendy F. Hensel/President, University of Hawaiʻi 

“There’s nothing more important than ensuring education is accessible. And we know that 30% of our graduates don’t pay any tuition and that 80% graduate with no debt, undergraduates. That’s an incredible statistic and we’re really proud of that.”

“So many people think that finances will be a problem for them coming to school. We’re here to tell you we will work with you and find a way to make it affordable and in many cases completely free.”