Student Loans in Indiana

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

Average Debt

$30,380

Monthly Payment (Std)

$345

State Tax Deduction

Yes

vs. National Avg

$1,620

Student Loan Overview for Indiana

Indiana borrowers carry an average student loan debt of $30,380, 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%, Indiana graduates would pay $345 per month and a total of $11,020 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. Indiana residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Indiana Student Loan Forgiveness Programs

Indiana offers the Next Generation Hoosier Educators Scholarship for teachers and the State Loan Repayment Program for healthcare providers.

In addition to state programs, Indiana 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

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

Top Indiana Colleges & Average Debt

Institution	Avg. Graduate Debt
Indiana University	$29,000
Purdue University	$28,000
University of Notre Dame	$32,000

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

Frequently Asked Questions

What is the average student loan debt in Indiana?

The average student loan borrower in Indiana graduates with approximately $30,380 in student loan debt. This is near the national average of $32,000.

Does Indiana offer student loan forgiveness?

Indiana offers the Next Generation Hoosier Educators Scholarship for teachers and the State Loan Repayment Program for healthcare providers.

Can I deduct student loan interest on Indiana state taxes?

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

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

Among Indiana institutions, Indiana University 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 Indiana?

Your best plan depends on your income and career. Indiana 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.

Explore More Student Loan Tools

${floatingBanner()} ${mobileBottomNav()}