Student Loans in New Jersey

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

Average Debt

$35,375

Monthly Payment (Std)

$402

State Tax Deduction

Yes

vs. National Avg

+$3,375

Student Loan Overview for New Jersey

New Jersey borrowers carry an average student loan debt of $35,375, 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%, New Jersey graduates would pay $402 per month and a total of $12,865 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. New Jersey residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

New Jersey Student Loan Forgiveness Programs

New Jersey offers the Loan Redemption Program for primary care practitioners and the Governor Educator Loan Redemption Program for teachers.

In addition to state programs, New Jersey 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

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

Top New Jersey Colleges & Average Debt

Institution	Avg. Graduate Debt
Princeton University	$12,000
Rutgers University	$33,000
Seton Hall University	$38,000

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

Frequently Asked Questions

What is the average student loan debt in New Jersey?

The average student loan borrower in New Jersey graduates with approximately $35,375 in student loan debt. This is above the national average of $32,000.

Does New Jersey offer student loan forgiveness?

New Jersey offers the Loan Redemption Program for primary care practitioners and the Governor Educator Loan Redemption Program for teachers.

Can I deduct student loan interest on New Jersey state taxes?

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

What are the best colleges in New Jersey for low student debt?

Among New Jersey institutions, Princeton University has an average graduate debt of $12,000. In-state tuition at public universities is significantly lower than out-of-state rates.

What repayment plan should I use for student loans in New Jersey?

Your best plan depends on your income and career. New Jersey 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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