US consumer debt: Student loans fall in 43 states as personal loans rise

New data indicates shifting trends in American consumer debt. According to an analysis of Federal Reserve Bank of New York data by Achieve, student loan balances declined in 43 states over the past year. The national average for student loan debt fell 1.8 percent, dropping from $5,560 in the fourth quarter of 2024 to $5,460 in the fourth quarter of 2025.

Regional disparities in student debt remain significant. Georgia reported the highest per-person balance at $7,120, while Wyoming reported the lowest at $3,180. Only four states—New Jersey, New Hampshire, Illinois, and Rhode Island—saw increases in student loan balances.

Separately, personal loan trends show a steady rise in volume and value. By the second quarter of 2026, the average personal loan amount reached $11,694, with approximately 26.9 million consumers holding such loans. While the average amount saw a slight quarterly decrease of 0.63 percent, the total number of borrowers has increased by 24.54 percent since 2019. Baby Boomers carry the highest average personal loan amounts at $22,551, while Generation Z maintains the lowest average at $8,710.