Student Loans in Iowa

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

Average Debt

$30,045

Monthly Payment (Std)

$342

State Tax Deduction

Yes

vs. National Avg

$1,955

Student Loan Overview for Iowa

Iowa borrowers carry an average student loan debt of $30,045, 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%, Iowa graduates would pay $342 per month and a total of $10,995 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. Iowa residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Iowa Student Loan Forgiveness Programs

Iowa offers the Teacher Shortage Loan Forgiveness Program and the PRIMECARRE program for healthcare providers.

In addition to state programs, Iowa 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

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

Top Iowa Colleges & Average Debt

Institution	Avg. Graduate Debt
University of Iowa	$28,000
Iowa 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 Iowa?

The average student loan borrower in Iowa graduates with approximately $30,045 in student loan debt. This is near the national average of $32,000.

Does Iowa offer student loan forgiveness?

Iowa offers the Teacher Shortage Loan Forgiveness Program and the PRIMECARRE program for healthcare providers.

Can I deduct student loan interest on Iowa state taxes?

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

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

Among Iowa institutions, University of Iowa has an average graduate debt of $28,000. In-state tuition at public universities is significantly lower than out-of-state rates.

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

Your best plan depends on your income and career. Iowa 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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