Student Loans in Arizona

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

Average Debt

$25,038

Monthly Payment (Std)

$285

State Tax Deduction

Yes

vs. National Avg

$6,962

Student Loan Overview for Arizona

Arizona borrowers carry an average student loan debt of $25,038, which is below the national average of approximately $32,000. Under the Standard 10-year repayment plan at the current federal interest rate of 6.53%, Arizona graduates would pay $285 per month and a total of $9,162 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. Arizona residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Arizona Student Loan Forgiveness Programs

Arizona offers loan repayment for primary care providers and behavioral health professionals through the Arizona Health Education Centers.

In addition to state programs, Arizona 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

Arizona conforms to the federal student loan interest deduction. Borrowers can deduct up to $2,500 in student loan interest paid during the tax year on both their federal and Arizona state income tax returns. This deduction phases out for single filers earning $75,000-$90,000.

Top Arizona Colleges & Average Debt

Institution	Avg. Graduate Debt
Arizona State University	$24,000
University of Arizona	$26,000
Northern Arizona University	$25,000

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

Frequently Asked Questions

What is the average student loan debt in Arizona?

The average student loan borrower in Arizona graduates with approximately $25,038 in student loan debt. This is below the national average of $32,000.

Does Arizona offer student loan forgiveness?

Arizona offers loan repayment for primary care providers and behavioral health professionals through the Arizona Health Education Centers.

Can I deduct student loan interest on Arizona state taxes?

Yes, Arizona conforms to the federal student loan interest deduction. You can deduct up to $2,500 in student loan interest paid on your Arizona state income tax return, subject to income limits.

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

Among Arizona institutions, Arizona State University has an average graduate debt of $24,000. In-state tuition at public universities is significantly lower than out-of-state rates.

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

Your best plan depends on your income and career. Arizona 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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