Student Loans in Vermont

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

Average Debt

$36,400

Monthly Payment (Std)

$414

State Tax Deduction

Yes

vs. National Avg

+$4,400

Student Loan Overview for Vermont

Vermont borrowers carry an average student loan debt of $36,400, 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%, Vermont graduates would pay $414 per month and a total of $13,280 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. Vermont residents working in public service should explore PSLF for potential forgiveness after 10 years of qualifying payments.

Vermont Student Loan Forgiveness Programs

Vermont offers the VSAC Grant programs and healthcare loan repayment through the State Loan Repayment Program.

In addition to state programs, Vermont 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

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

Top Vermont Colleges & Average Debt

Institution	Avg. Graduate Debt
University of Vermont	$34,000
Middlebury College	$24,000

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

Frequently Asked Questions

What is the average student loan debt in Vermont?

The average student loan borrower in Vermont graduates with approximately $36,400 in student loan debt. This is above the national average of $32,000.

Does Vermont offer student loan forgiveness?

Vermont offers the VSAC Grant programs and healthcare loan repayment through the State Loan Repayment Program.

Can I deduct student loan interest on Vermont state taxes?

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

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

Among Vermont institutions, University of Vermont has an average graduate debt of $34,000. In-state tuition at public universities is significantly lower than out-of-state rates.

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

Your best plan depends on your income and career. Vermont 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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