Answer
The second student.
Work Step by Step
A student graduated from a 4-year college with an outstanding loan of
$9650$ where the average debt is $8455$ with a standard
deviation of $1865$.
$z1=\frac{9650-8455}{1865}=0.64$
Another student graduated from a
university with an outstanding loan of $12,360$ where
the average of the outstanding loans was $10,326$ with
a standard deviation of $2143$.
$z2=\frac{12360-10326}{2143}=0.95$
Since $z2\gt z1$, the second z-score is further away from the mean in the positive direction,
and this student had a higher debt in relationship to his or her peers.
