Pennsylvania Student Loans: Debt Stats, Repayment Programs and Refinancing Loans

Pennsylvania federal and private student loan borrowers shoulder an average balance of $33,426, below the $36,689 national average.

The state offers full tuition waivers for students who are or were in foster care through its Fostering Independence Tuition Waiver Program. Meanwhile, spouses and children of Pennsylvania National Guard members can attend college tuition-free or at a reduced cost through the PA GI Bill, which was signed into law in July 2019.

Most federal student loan repayments are suspended through Sept. 30, 2021, which is temporary relief for many of the 2.1 million student loan borrowers in Pennsylvania. But student loan debt remains a topic that state officials are eager to address. Here’s what else you should know about Pennsylvania student loans.

Pennsylvania student loans: Borrowers owe average of $33,426 in federal, private debt — and more facts

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The amount of student loan debt that Pennsylvania borrowers accumulate depends on various factors, including their school’s classification. The state is home to almost 250 public and private colleges and universities.

Pennsylvania has 45 public, four-year universities — among the notables are Penn State University and the University of Pittsburgh — including 14 campuses in its state system. There are also 110 private, four-year colleges in the state, including the renowned Ivy League University of Pennsylvania, in addition to community colleges and other for-profit institutions.

Students who don’t qualify for state-sponsored tuition waivers or reductions — and who’ve exhausted grants and scholarship options — might need to explore federal and private student loans.

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Student loan debt in Pennsylvania’s largest counties, from Allegheny to York

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Student loan debt by ZIP code in Pennsylvania’s 2 largest cities: Philadelphia and Pittsburgh

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Loan repayment programs for Pennsylvania residents

Pennsylvanians who work in industry-shortage or high-demand professions are encouraged to serve in the state in exchange for loan repayment relief. Here are a few loan repayment programs available to eligible Pennsylvania residents.

Pennsylvania IOLTA Loan Repayment Assistance Program

Full-time, licensed attorneys who are employed at Interest on Lawyers’ Trust Accounts-funded legal services organizations can receive repayment assistance up to the full amount of their loan. The IOLTA program offers one-year loans — which are forgiven at the end of the year — for up to 10 years. Awards are disbursed quarterly as long as funding is available and borrowers maintain eligibility.

Pennsylvania Primary Care Loan Repayment Program

Eligible health services professionals who work half or full time in health professional shortage areas can receive up to $100,000 in loan repayment assistance. The Pennsylvania Primary Care Loan Repayment Program awards up to $50,000 to half-time physicians and dentists, and up to $100,000 to full-time professionals. Other health practitioners can receive up to $30,000 for a half-time commitment, or up to $60,000 for full-time service.

Pennsylvania Substance Use Disorder Loan Repayment Program

The Pennsylvania Substance Use Disorder Loan Repayment Program didn’t secure funding in the latest award round, but we’re still highlighting it in case it returns. This program offered up to $100,000 to health services workers who had at least two years of service — and will commit to an additional two — treating substance use disorder or opioid addiction. Awards were based on recipients’ practitioner designation and employment status.

Pennsylvania federal student loan borrowers younger than 25 owe more than national average — and more comparisons

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How to refinance student loans in Pennsylvania

In Pennsylvania, 7% of borrowers owe $100,000 or more in federal student loans. One way students can reduce their overall debt burden after taking out a loan is through student loan refinancing.

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Pennsylvania borrowers who have federal and/or private student loans can choose to refinance their existing loans. In refinancing, a private lender will pay off the original loan(s) in full, and then create a new private student loan. Borrowers with good credit might qualify for lower interest rates that can lessen the cost of their debt overall, which can be a wonderful thing amid the global coronavirus pandemic.

The Pennsylvania Higher Education Assistance Agency offers state residents the PA Forward Student Loan Refinance. Pennsylvanians can refinance between $5,000 and $300,000 in student loans with no origination, application fees or prepayment penalties.

Before refinancing federal student loans, make sure you won’t need to rely on federal benefits and payment protections in the future. Refinancing your federal loans means losing out on government loan forgiveness programs, deferment and forbearance, and more.

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

Because the latter data is from 2015, researchers estimated the increase in student loan debt per borrower in the state using statewide data from anonymized credit reports.

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