Student Loans in Tennessee

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

Average Debt

$28,200

Monthly Payment (Std)

$321

State Tax Deduction

vs. National Avg

$3,800

Student Loan Overview for Tennessee

Tennessee borrowers carry an average student loan debt of $28,200, 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%, Tennessee graduates would pay $321 per month and a total of $10,320 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. Tennessee residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Tennessee Student Loan Forgiveness Programs

Tennessee has no state income tax on wages. The state offers the Tennessee Promise free community college program.

In addition to state programs, Tennessee 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

Tennessee does not have a state income tax, so there is no state-level student loan interest deduction. However, you can still claim the federal deduction of up to $2,500 on your federal tax return.

Top Tennessee Colleges & Average Debt

Institution	Avg. Graduate Debt
Vanderbilt University	$28,000
University of Tennessee	$25,000

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

Frequently Asked Questions

What is the average student loan debt in Tennessee?

The average student loan borrower in Tennessee graduates with approximately $28,200 in student loan debt. This is near the national average of $32,000.

Does Tennessee offer student loan forgiveness?

Tennessee has no state income tax on wages. The state offers the Tennessee Promise free community college program.

Can I deduct student loan interest on Tennessee state taxes?

Tennessee does not have a state income tax, so there is no state-level deduction. You can still claim the federal deduction of up to $2,500 on your federal return.

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

Among Tennessee institutions, Vanderbilt University 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 Tennessee?

Your best plan depends on your income and career. Tennessee 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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