Student Loans in Arkansas

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

Average Debt

$33,059

Monthly Payment (Std)

$376

State Tax Deduction

Yes

vs. National Avg

+$1,059

Student Loan Overview for Arkansas

Arkansas borrowers carry an average student loan debt of $33,059, which is above the national average of approximately $32,000. Under the Standard 10-year repayment plan at the current federal interest rate of 6.53%, Arkansas graduates would pay $376 per month and a total of $12,061 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. Arkansas residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Arkansas Student Loan Forgiveness Programs

The Arkansas State Teacher Education Program (STEP) provides forgivable loans for teachers in critical shortage areas.

In addition to state programs, Arkansas 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

Arkansas 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 Arkansas state income tax returns. This deduction phases out for single filers earning $75,000-$90,000.

Top Arkansas Colleges & Average Debt

Institution	Avg. Graduate Debt
University of Arkansas	$29,000
Arkansas State University	$27,000

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

Frequently Asked Questions

What is the average student loan debt in Arkansas?

The average student loan borrower in Arkansas graduates with approximately $33,059 in student loan debt. This is above the national average of $32,000.

Does Arkansas offer student loan forgiveness?

The Arkansas State Teacher Education Program (STEP) provides forgivable loans for teachers in critical shortage areas.

Can I deduct student loan interest on Arkansas state taxes?

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

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

Among Arkansas institutions, University of Arkansas has an average graduate debt of $29,000. In-state tuition at public universities is significantly lower than out-of-state rates.

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

Your best plan depends on your income and career. Arkansas 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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