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Student Loans in Texas

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

Average Debt
$28,600
Monthly Payment (Std)
$325
State Tax Deduction
No
vs. National Avg
$3,400

Student Loan Overview for Texas

Texas borrowers carry an average student loan debt of $28,600, 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%, Texas graduates would pay $325 per month and a total of $10,400 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. Texas residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Texas Student Loan Forgiveness Programs

Texas has no state income tax. The state offers the Physician Education Loan Repayment Program and the Teach for Texas Loan Repayment Assistance Program.

In addition to state programs, Texas 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

Texas 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 Texas Colleges & Average Debt

InstitutionAvg. Graduate Debt
UT Austin$26,000
Rice University$22,000
Texas A&M$27,000

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

Frequently Asked Questions

What is the average student loan debt in Texas?

The average student loan borrower in Texas graduates with approximately $28,600 in student loan debt. This is near the national average of $32,000.

Does Texas offer student loan forgiveness?

Texas has no state income tax. The state offers the Physician Education Loan Repayment Program and the Teach for Texas Loan Repayment Assistance Program.

Can I deduct student loan interest on Texas state taxes?

Texas 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 Texas for low student debt?

Among Texas institutions, UT Austin has an average graduate debt of $26,000. In-state tuition at public universities is significantly lower than out-of-state rates.

What repayment plan should I use for student loans in Texas?

Your best plan depends on your income and career. Texas 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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