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Student Loans in Montana

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

Average Debt
$30,300
Monthly Payment (Std)
$345
State Tax Deduction
Yes
vs. National Avg
$1,700

Student Loan Overview for Montana

Montana borrowers carry an average student loan debt of $30,300, 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%, Montana graduates would pay $345 per month and a total of $11,100 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. Montana residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Montana Student Loan Forgiveness Programs

Montana offers the Rural Physician Incentive Program and the State Loan Repayment Program.

In addition to state programs, Montana 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

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

Top Montana Colleges & Average Debt

InstitutionAvg. Graduate Debt
University of Montana$27,000
Montana State University$26,000

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

Frequently Asked Questions

What is the average student loan debt in Montana?

The average student loan borrower in Montana graduates with approximately $30,300 in student loan debt. This is near the national average of $32,000.

Does Montana offer student loan forgiveness?

Montana offers the Rural Physician Incentive Program and the State Loan Repayment Program.

Can I deduct student loan interest on Montana state taxes?

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

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

Among Montana institutions, University of Montana 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 Montana?

Your best plan depends on your income and career. Montana 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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