Nebraska Student Loans: Debt Statistics

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Nebraskans have an average federal and private student loan balance of $ 28,684, the lowest of any state. That’s actually 22% lower than the US average of $ 36,689.

Eligible state residents have access to affordable college through initiatives, such as the Nebraska Promise program. While these opportunities help Nebraska families pay their children’s college admission fees, hundreds of thousands of students are still looking to Nebraska Federal and Private Student Loans to cover remaining tuition fees. .

Nebraska student loans: borrowers owe an average of $ 28,684 in federal and private debt – and more facts

Snapshot of Nebraska Student Debt
The equilibrium mean $ 28,684
Total outstanding debt $ 8.3 billion
Number of borrowers 0.3 million
Average total monthly payment $ 242
Note: Averages include federal and private student debt.

Cornhusker State offers many options for public college education across the state. Within the Nebraska Community College Association, students can attend one of 13 local community colleges to earn a certificate or earn an associate’s degree.

The Nebraska State College System (NSCS) also offers three state colleges for students who wish to attend a four-year institution at a lower price. Alternatively, the state offers another opportunity toward a four-year college experience through the University of Nebraska system. There are four campuses, including:

  • University of Nebraska-Lincoln (UNL)
  • University of Nebraska Medical Center (UNMC)
  • University of Nebraska Omaha (UN)
  • University of Nebraska at Kearney (UNK)

As part of the Nebraska Promise, undergraduates attending a University of Nebraska school can attend a campus of their choice, tuition-free (up to 15 credit hours per semester). Students must meet academic and income requirements, and the award is renewable each academic year as long as the requirements are met.

Residents can also explore 13 private institutions under the Council of Independent Nebraska Colleges Foundations. These campuses, however, are not eligible for tuition assistance under the Nebraska Promise program.

Whether attending a public or private institution, students who have maximized or are not eligible for scholarship and grant programs can look to federal and private student loans to fill the financial gap.

Student debt in Nebraska’s largest counties, from Douglas to Lancaster

Student loan debt in Nebraska’s most populous counties
county Average student loan balance Average monthly student loan payment
Douglas $ 32,282 $ 234
Lancaster $ 33,934 $ 245
Note: Limited to counties with a population of 300,000 or more; averages include federal and private student loan debt.

Student Loan Debt By Postal Code In Largest Cities In Nebraska: Omaha, Lincoln

Loan Repayment Programs for Nebraska Residents

For Nebraska students who are already in repayment, pursuing a loan repayment assistance program can help borrowers take care of their student debt.

Nebraska Loan Repayment Program

State workers who are primary care, dental, mental health, or paramedical professionals may be eligible for the Nebraska loan repayment program. Participants must accept a contract in a shortage area of ​​the state for two to four years, depending on the program.

In return for their services, eligible dentists and physicians can receive rewards between $ 180,000 and $ 200,000. Other health workers can receive $ 90,000 to $ 100,000 in rewards if they meet the eligibility requirements.

Public service loan remission

PSLF is a federal loan forgiveness program that is available to federal direct loan borrowers in Nebraska. Participants must be employed full-time by a local, state, or federal government agency or non-profit organization.

During this period, borrowers should be enrolled in an income-based repayment plan. After 120 qualifying payments, the loan balance is canceled. There is no tax payable on the amount remitted and eligible payments do not need to be consecutive.

Teacher loan rebate program

Educators in Nebraska can choose to enroll in the teacher loan rebate program. This federal program is available to eligible borrowers who have taken out Federal Direct Loans or Stafford Loans. Recipients can receive up to $ 17,500 in loan forgiveness.

Nebraska federal student loan borrowers under 25 owe less than national average – and more comparisons

How To Refinance Nebraska Student Loans

Among Nebraska residents who have student loans, 5.9% of borrowers have $ 100,000 or more in unpaid student debt. When student loan repayment assistance is not an option, student loan refinancing can be a useful alternative.

Residents of Nebraska can refinance federal and private student loans. During this process, the refinancing lender fully repays the original loans of the borrowers. A new refinanced loan is created in their place, with a new rate and different repayment terms.

The goal of refinancing is to obtain a lower interest rate and favorable terms that complement the current financial position of borrowers. When refinancing federal loans, borrowers lose access to valuable benefits, such as flexible, income-driven payment plans and rebate programs.

And although some private lenders offer deferral and forbearance options, such as federal loans, the requirements for these programs vary from lender to lender.

Before borrowers decide to refinance a private student loan, they must compare student lenders and calculate the savings that a refinance loan provides.

Sources

  • US Department of Education data as of June 30, 2020
  • Anonymized credit reports My LendingTree June 2020
  • Federal Reserve Bank of New York / Equifax Consumer Credit Panel as of June 2020
  • mappingstudentdebt.org

Since this latest data is from 2015, the researchers estimated the increase in student loan debt per borrower in the state using state-wide data from anonymized credit reports.

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