Student Loans in Illinois

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

Average Debt

$29,535

Monthly Payment (Std)

$336

State Tax Deduction

Yes

vs. National Avg

$2,465

Student Loan Overview for Illinois

Illinois borrowers carry an average student loan debt of $29,535, 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%, Illinois graduates would pay $336 per month and a total of $10,785 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. Illinois residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Illinois Student Loan Forgiveness Programs

Illinois offers the David A. DeBolt Teacher Shortage Scholarship and the Illinois Health Services Corps for healthcare providers.

In addition to state programs, Illinois 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

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

Top Illinois Colleges & Average Debt

Institution	Avg. Graduate Debt
University of Illinois	$27,000
Northwestern University	$35,000
DePaul University	$32,000

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

Frequently Asked Questions

What is the average student loan debt in Illinois?

The average student loan borrower in Illinois graduates with approximately $29,535 in student loan debt. This is near the national average of $32,000.

Does Illinois offer student loan forgiveness?

Illinois offers the David A. DeBolt Teacher Shortage Scholarship and the Illinois Health Services Corps for healthcare providers.

Can I deduct student loan interest on Illinois state taxes?

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

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

Among Illinois institutions, University of Illinois has an average graduate debt of $27,000. In-state tuition at public universities is significantly lower than out-of-state rates.

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

Your best plan depends on your income and career. Illinois 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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