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American youth from rural backgrounds have made great strides to overcome challenges in college enrollment and completion since the 2000s. Yet little is known about how rural youth are financing these attainment increases—a pressing question in light of high college costs, rising student debt, and spatial inequality in the resources that students have to pay for college. This paper examines disparities in young adults' student debt by geographic background using data from the National Longitudinal Survey of Youth 1997 Cohort. Regression analyses reveal that college‐goers from rural backgrounds accumulate more debt than those from suburban and urban backgrounds, adjusting for differences in sociodemographic characteristics. Rural college‐goers' higher debt can be partially attributed to differences in socioeconomic backgrounds and rates of inter‐county migration during college, and there is evidence that the additive influences of geographic background and gender contribute to particularly high debt among rural women. The findings suggest that longstanding spatial inequalities contribute to disparities in student debt and raise questions about the experiences of rural youth and communities in a debt‐based society. [ABSTRACT FROM AUTHOR]