Student Loans in North Carolina

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

Average Debt

$28,712

Monthly Payment (Std)

$326

State Tax Deduction

Yes

vs. National Avg

$3,288

Student Loan Overview for North Carolina

North Carolina borrowers carry an average student loan debt of $28,712, 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%, North Carolina graduates would pay $326 per month and a total of $10,408 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. North Carolina residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

North Carolina Student Loan Forgiveness Programs

North Carolina offers the Forgivable Education Loans for Service (FELS) program for healthcare providers and teachers in underserved areas.

In addition to state programs, North Carolina 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

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

Top North Carolina Colleges & Average Debt

Institution	Avg. Graduate Debt
Duke University	$25,000
UNC Chapel Hill	$24,000
NC State	$25,000

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

Frequently Asked Questions

What is the average student loan debt in North Carolina?

The average student loan borrower in North Carolina graduates with approximately $28,712 in student loan debt. This is near the national average of $32,000.

Does North Carolina offer student loan forgiveness?

North Carolina offers the Forgivable Education Loans for Service (FELS) program for healthcare providers and teachers in underserved areas.

Can I deduct student loan interest on North Carolina state taxes?

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

What are the best colleges in North Carolina for low student debt?

Among North Carolina institutions, Duke University has an average graduate debt of $25,000. In-state tuition at public universities is significantly lower than out-of-state rates.

What repayment plan should I use for student loans in North Carolina?

Your best plan depends on your income and career. North Carolina 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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