Best States to Pay Off Student Loans
Paying off student loans faster depends on maximizing take-home pay relative to expenses. States with high median incomes, low cost of living, and no income tax give borrowers the most disposable income for loan payments. Below are all 50 states ranked by cost of living index.
- Oklahoma ranks #1 with the lowest col index at 83.5.
- Hawaii ranks last at 184.8 — the highest among all states.
- The top 5 states are Oklahoma, Alabama, Mississippi, Kansas, West Virginia.
- The ranking basis, source limitations, and calculation method are documented in the Methodology section below.
Top 3 States
All 50 States Ranked
Lowest to highest by col index
| # | State | COL Index | Median Income | Income Tax | Calculator |
|---|---|---|---|---|---|
| 1 | Oklahoma | 83.5 | $66,148 | 4.50% | Student Loan Calculator |
| 2 | Alabama | 85 | $66,659 | 5.00% | Student Loan Calculator |
| 3 | Mississippi | 86.2 | $59,127 | 4.00% | Student Loan Calculator |
| 4 | Kansas | 87.6 | $75,514 | 5.58% | Student Loan Calculator |
| 5 | West Virginia | 87.9 | $60,798 | 4.58% | Student Loan Calculator |
| 6 | Indiana | 88.3 | $71,959 | 2.95% | Student Loan Calculator |
| 7 | Iowa | 88.6 | $75,501 | 3.80% | Student Loan Calculator |
| 8 | Missouri | 88.6 | $71,589 | 4.70% | Student Loan Calculator |
| 9 | Tennessee | 88.9 | $71,997 | 0.00% | Student Loan Calculator |
| 10 | Arkansas | 89.1 | $62,106 | 3.90% | Student Loan Calculator |
| 11 | New Mexico | 89.9 | $67,816 | 5.90% | Student Loan Calculator |
| 12 | Georgia | 90.6 | $79,991 | 4.99% | Student Loan Calculator |
| 13 | North Dakota | 90.7 | $77,871 | 2.50% | Student Loan Calculator |
| 14 | Texas | 90.7 | $79,721 | 0.00% | Student Loan Calculator |
| 15 | Louisiana | 91.1 | $60,986 | 3.00% | Student Loan Calculator |
| 16 | Nebraska | 91.3 | $76,376 | 4.55% | Student Loan Calculator |
| 17 | South Carolina | 91.9 | $72,350 | 5.21% | Student Loan Calculator |
| 18 | Kentucky | 92.5 | $64,526 | 3.50% | Student Loan Calculator |
| 19 | Minnesota | 93.4 | $87,117 | 9.85% | Student Loan Calculator |
| 20 | Ohio | 93.7 | $72,212 | 2.75% | Student Loan Calculator |
| 21 | Wyoming | 93.7 | $75,532 | 0.00% | Student Loan Calculator |
| 22 | Michigan | 93.9 | $72,389 | 4.25% | Student Loan Calculator |
| 23 | South Dakota | 94.1 | $76,881 | 0.00% | Student Loan Calculator |
| 24 | Illinois | 95.1 | $83,211 | 4.95% | Student Loan Calculator |
| 25 | Pennsylvania | 96.2 | $77,545 | 3.07% | Student Loan Calculator |
| 26 | North Carolina | 96.6 | $73,958 | 3.99% | Student Loan Calculator |
| 27 | Wisconsin | 97.4 | $77,488 | 7.65% | Student Loan Calculator |
| 28 | Virginia | 99.1 | $92,090 | 5.75% | Student Loan Calculator |
| 29 | Utah | 100.6 | $96,658 | 4.50% | Student Loan Calculator |
| 30 | Florida | 100.7 | $77,735 | 0.00% | Student Loan Calculator |
| 31 | Nevada | 100.7 | $81,134 | 0.00% | Student Loan Calculator |
| 32 | Delaware | 101.7 | $87,534 | 6.60% | Student Loan Calculator |
| 33 | Idaho | 101.7 | $81,166 | 5.30% | Student Loan Calculator |
| 34 | Colorado | 101.8 | $97,113 | 4.40% | Student Loan Calculator |
| 35 | Montana | 105.9 | $75,340 | 5.65% | Student Loan Calculator |
| 36 | Arizona | 107.6 | $81,486 | 2.50% | Student Loan Calculator |
| 37 | Oregon | 109.6 | $85,220 | 9.90% | Student Loan Calculator |
| 38 | New Hampshire | 110.1 | $99,782 | 0.00% | Student Loan Calculator |
| 39 | Rhode Island | 111.2 | $83,504 | 5.99% | Student Loan Calculator |
| 40 | Vermont | 113 | $82,730 | 8.75% | Student Loan Calculator |
| 41 | Connecticut | 114.2 | $96,049 | 6.99% | Student Loan Calculator |
| 42 | Maine | 114.6 | $76,442 | 7.15% | Student Loan Calculator |
| 43 | Washington | 114.6 | $99,389 | 0.00% | Student Loan Calculator |
| 44 | New Jersey | 118.8 | $104,294 | 10.75% | Student Loan Calculator |
| 45 | Maryland | 121.1 | $102,905 | 6.50% | Student Loan Calculator |
| 46 | New York | 124.7 | $85,820 | 10.90% | Student Loan Calculator |
| 47 | Alaska | 129 | $95,665 | 0.00% | Student Loan Calculator |
| 48 | California | 140.5 | $100,149 | 13.30% | Student Loan Calculator |
| 49 | Massachusetts | 147.8 | $104,828 | 9.00% | Student Loan Calculator |
| 50 | Hawaii | 184.8 | $100,745 | 11.00% | Student Loan Calculator |
Methodology
How we collected and ranked the data
States ranked by cost of living index (100 = national average). Lower COL means more disposable income for loan payments. Median household income and state income tax rates provide additional context for comparing net affordability.
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View all 107 state comparisonsFrequently Asked Questions
Which state is best for paying off student loans?
States like Texas, Florida, and Tennessee combine no income tax with moderate cost of living, maximizing your take-home pay for loan payments. Wyoming and South Dakota also rank highly.
Does state income tax affect student loan repayment?
Yes. In a no-income-tax state, more of your paycheck goes directly to loan payments. A $60,000 salary in Texas keeps about $3,000–$5,000 more annually compared to a high-tax state like California.
Should I move to pay off student loans faster?
Only if the income-to-cost-of-living ratio improves meaningfully. Moving costs and job availability matter. Use our state-specific student loan calculators to compare actual repayment timelines.