Student Loans in Alaska

Average debt, state-specific forgiveness programs, and repayment strategies for Alaska borrowers in 2026.

Average Debt

$30,280

Monthly Payment (Std)

$344

State Tax Deduction

vs. National Avg

$1,720

Student Loan Overview for Alaska

Alaska borrowers carry an average student loan debt of $30,280, which is near the national average of approximately $32,000. Under the Standard 10-year repayment plan at the current federal interest rate of 6.53%, Alaska graduates would pay $344 per month and a total of $11,000 in interest over the life of the loan.

For borrowers seeking lower monthly payments, income-driven repayment plans like SAVE (formerly REPAYE) cap payments at 5-10% of discretionary income. Alaska residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Alaska Student Loan Forgiveness Programs

Alaska offers the SHARP program providing loan repayment for healthcare professionals in underserved areas, and the Teacher Education Loan program for educators in rural communities.

In addition to state programs, Alaska borrowers have access to all federal forgiveness programs including PSLF, Teacher Loan Forgiveness ($17,500 for STEM and special education teachers), and income-driven repayment forgiveness after 20-25 years.

State Tax Deduction for Student Loan Interest

Alaska does not have a state income tax, so there is no state-level student loan interest deduction. However, you can still claim the federal deduction of up to $2,500 on your federal tax return.

Top Alaska Colleges & Average Debt

Institution	Avg. Graduate Debt
University of Alaska Anchorage	$26,000
University of Alaska Fairbanks	$24,000

* Debt figures are approximate averages for graduating students who borrowed.

Frequently Asked Questions

What is the average student loan debt in Alaska?

The average student loan borrower in Alaska graduates with approximately $30,280 in student loan debt. This is near the national average of $32,000.

Does Alaska offer student loan forgiveness?

Alaska offers the SHARP program providing loan repayment for healthcare professionals in underserved areas, and the Teacher Education Loan program for educators in rural communities.

Can I deduct student loan interest on Alaska state taxes?

Alaska does not have a state income tax, so there is no state-level deduction. You can still claim the federal deduction of up to $2,500 on your federal return.

What are the best colleges in Alaska for low student debt?

Among Alaska institutions, University of Alaska Anchorage has an average graduate debt of $26,000. In-state tuition at public universities is significantly lower than out-of-state rates.

What repayment plan should I use for student loans in Alaska?

Your best plan depends on your income and career. Alaska residents earning under $50,000 should consider the SAVE plan for the lowest payments. Those in public service should pursue PSLF. Higher earners may benefit from the Standard plan or refinancing.

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