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Student Loans in Minnesota

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

Average Debt
$33,800
Monthly Payment (Std)
$384
State Tax Deduction
Yes
vs. National Avg
+$1,800

Student Loan Overview for Minnesota

Minnesota borrowers carry an average student loan debt of $33,800, 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%, Minnesota graduates would pay $384 per month and a total of $12,280 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. Minnesota residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Minnesota Student Loan Forgiveness Programs

Minnesota offers the Health Professional Loan Forgiveness Program and the Teacher Shortage Loan Repayment Program.

In addition to state programs, Minnesota 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

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

Top Minnesota Colleges & Average Debt

InstitutionAvg. Graduate Debt
University of Minnesota$28,000
St. Olaf College$32,000

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

Frequently Asked Questions

What is the average student loan debt in Minnesota?

The average student loan borrower in Minnesota graduates with approximately $33,800 in student loan debt. This is above the national average of $32,000.

Does Minnesota offer student loan forgiveness?

Minnesota offers the Health Professional Loan Forgiveness Program and the Teacher Shortage Loan Repayment Program.

Can I deduct student loan interest on Minnesota state taxes?

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

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

Among Minnesota institutions, University of Minnesota 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 Minnesota?

Your best plan depends on your income and career. Minnesota 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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