Student Loans in Indiana: Debt Stats, Repayment Programs and Refinancing Loans

 August 7, 2021
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In Indiana, the average balance for federal and private student loan borrowers is $30,661, 16% less than the national average of $36,689 and one of the country’s lowest averages. However, the median household income in Indiana — $56,303 — is 18% less than the national median of $68,703, so managing student loan payments may be more challenging.

To offset college costs and reduce the need for student loans, Indiana offers many grants and scholarships, as well as a state work-study program. However, 900,000 Hoosier State graduates still leave school with student loan debt.

Here’s what you should know about student loans in Indiana and repayment and forgiveness programs within the state.

Student loans in Indiana: Borrowers owe average of $30,661 in federal, private debt — and more facts

Indiana student debt overview
Average balance $30,661
Total outstanding debt $30.2 billion
Number of borrowers 0.9 million
Average total monthly payment $252
Note: Averages include federal and private student loan debt.

Opting for a public university over a private school could be an excellent way to reduce your college expenses. There are 16 public community colleges and universities in Indiana, including well-known schools like Indiana University, Purdue University and Ball State University.

The state operates several financial aid programs, including:

  • Adult Student Grant: Adults starting or completing an associate degree, bachelor’s degree or certificate program can qualify for up to $2,000. The Adult Student Grant is awarded based on financial need.
  • EARN Indiana: EARN Indiana is the state work-study program. This initiative allows undergraduate students with financial need access to paid internships. Employers receive matching funds — 50% of the student’s hourly rate — for hiring students.
  • Frank O’Bannon Grant: Awarded based on students’ Free Application for Federal Student Aid (FAFSA) information, the Frank O’Bannon Grant can be used to pay for tuition at public and private schools.
  • Next Level Jobs Workforce Ready Grant: The Next Level Jobs Workforce Ready Grant covers the cost of tuition and mandatory fees for students who will complete certain certificate programs at Ivy Tech Community College, Vincennes University, the Indiana Institute of Technology or other approved schools. To qualify, the student must participate in a certificate program in the following subjects: Advanced manufacturing, building and construction, health sciences, information technology and business services or transportation and logistics.

Students ineligible for state grants, scholarships or work-study programs will likely need to use federal or private student loans to cover their education costs.

Student loan debt in Indiana’s largest counties, from Allen to Marion

Student loan debt in most populous Indiana counties
County Average student loan balance Average monthly student loan payment
Allen $36,034 $247
Hamilton $36,304 $286
Lake $34,075 $228
Marion $37,050 $260
Note: Limited to counties with a population of at least 300,000 residents; averages include federal and private student loan debt.

Student loan debt by ZIP code in Indiana’s largest city: Indianapolis

Indianapolis, IN
ZIP code Estimated average student loan balance
Citywide $33,478
46202 $51,791
46203 $36,576
46205 $45,101
46208 $43,031
46217 $38,414
46218 $31,101
46219 $37,047
46220 $47,035
46221 $31,025
46222 $33,371
46224 $34,597
46225 $36,504
46226 $35,245
46227 $34,168
46228 $47,026
46229 $35,416
46231 $37,873
46234 $39,971
46235 $36,985
46236 $43,633
46237 $37,224
46239 $39,032
46240 $46,065
46241 $28,780
46250 $41,732
46254 $41,741
46256 $40,552
46259 $37,436
46260 $43,998
46268 $43,790
46278 $50,086
46280 $41,866
46290 $56,927
Note: Averages include federal and private student loan debt.

Loan repayment programs for Indiana residents

If you qualify for one of Indiana’s student loan repayment assistance programs, you can reduce how much of your student loans you have to repay yourself and save money for your other financial goals. Here are a few federal and state programs available for Indiana student loans.

Income-driven repayment (IDR) loan forgiveness

If you have federal student loans, you can enroll in an IDR plan to potentially reduce your monthly payments. The loan servicer will extend your repayment term to 20 to 25 years and your new monthly payment is calculated based on your discretionary income and family size.

If you still have a balance after the loan term expires, the government will forgive the remaining amount. But while IDR forgiveness can be substantial, keep in mind that the amount forgiven may be taxable under IRS rules.

Indiana Health Care Professional Recruitment and Retention Fund Program (IHCPRRF)

The IHCPRRF provides student loan repayment assistance for health care professionals who agree to work in health care shortage areas, particularly for psychiatrists and alcohol and substance abuse counselors who work at approved sites. Qualified professionals can receive up to $20,000 to help repay their student loans.

Public Service Loan Forgiveness (PSLF)

Federal student loan borrowers who work for nonprofit organizations or the government may qualify for PSLF. Under this program, your loan balance is forgiven after working full time for an eligible employer while making the required 120 qualifying monthly payments (equivalent to 10 years of qualifying payments).

Richard M. Givan Loan Repayment Assistance Program

The Indiana Bar Foundation operates the Richard M. Givan Loan Repayment Assistance Program, a statewide loan assistance program. This program provides aid to law school graduates working for nonprofit legal organizations that service lower-income individuals in Indiana. Qualified recipients can receive up to $5,000 per year in loan repayment assistance.

Teacher Loan Forgiveness Program

If you’re a teacher and have federal student loans, you may be eligible for the Teacher Loan Forgiveness Program. With this forgiveness program, you can qualify for up to $17,500 in repayment assistance if you teach full time for five years in a low-income school or educational services agency.

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

How to refinance student loans in Indiana

In Indiana, 5.6% of student loan borrowers owe $100,000 or more. With a high loan balance, student loan refinancing can be beneficial, allowing you to save money, reduce your monthly payment or pay off your loans faster.

When you refinance, you consolidate your existing federal and private loans with a new loan from a private lender. The new loan has different terms, including the interest rate and monthly payment, and you’ll have just one loan to manage going forward.

Banks, credit unions and online lenders offer student loan refinancing.

In Indiana, one lender is INvestEd, a nonprofit organization based in the state. With INvestEd, you can refinance between $5,000 and $250,000, and you’ll have up to 20 years to repay your loan. INvestEd offers both variable and fixed interest rates, so you can choose the interest rate type that best suits your goals.

However, while refinancing can be a useful tool for managing your debt, there are downsides to keep in mind. When you refinance federal loans, you transfer them over to a private lender. As such, you’ll lose federal loan benefits like access to forgiveness programs and forbearance or deferment.

Some refinancing lenders offer financial hardship programs and allow you to defer your payments, but they differ from federal forbearance and deferment programs and are typically much shorter in duration.


  • 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

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.

Interested in refinancing student loans?

Here are the top 9 lenders of 2022!
LenderVariable APREligible Degrees 
1.74% – 8.70%1Undergrad
& Graduate

Visit Splash

1.74% – 7.99%2Undergrad
& Graduate

Visit Earnest

4.44% – 8.09%3Undergrad
& Graduate

Visit CommonBond

1.74% – 7.99%4Undergrad
& Graduate

Visit SoFi

1.89% – 5.90%5Undergrad
& Graduate

Visit Laurel Road

1.74% – 7.99%6Undergrad
& Graduate

Visit NaviRefi

2.05% – 5.25%7Undergrad
& Graduate

Visit Lendkey

1.86% – 6.01%Undergrad
& Graduate

Visit Elfi

& Graduate

Visit PenFed

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount

The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of May 4, 2022.

2 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.

Earnest Disclosures

Student Loan Refinance Interest Rate Disclosure Actual rate and available repayment terms will vary based on your income. Fixed rates range from 2.99% APR to 8.24% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.99% APR to 8.24% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Let us know if you have any questions and feel free to reach out directly to our team.

3 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. ‍All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Apr 22, 2021 and may increase after consummation.

4 Important Disclosures for SoFi.

SoFi Disclosures

Fixed rates range from 3.49% APR to 7.99% APR with a 0.25% autopay discount. Variable rates from 1.74% APR to 7.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.

5 Important Disclosures for Laurel Road.

Laurel Road Disclosures

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit

As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

  1. Checking your rate with Laurel Road only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
  2. Savings vary based on rate and term of your existing and refinanced loan(s). Refinancing to a longer term may lower your monthly payments, but may also increase the total interest paid over the life of the loan. Refinancing to a shorter term may increase your monthly payments, but may lower the total interest paid over the life of the loan. Review your loan documentation for total cost of your refinanced loan.
  3. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.
  4. Automatic Payment (“AutoPay”) Discount: if the borrower chooses to make monthly payments automatically from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically from the borrower’s bank account. The 0.25% AutoPay discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.

Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.


This information is current as of April 29, 2021. Information and rates are subject to change without notice.

6 Important Disclosures for Navient.

Navient Disclosures

You can choose between fixed and variable rates. Fixed interest rates are 2.99% – 8.24% APR (2.74% – 7.99% APR with Auto Pay discount). Starting variable interest rates are 1.99% APR to 8.24% APR (1.74% – 7.99% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin. Variable rates are reset monthly based on the fluctuation of the index. We do not currently offer variable rate loans in AK, CO, CT, HI, IL, KY, MA, MN, MS, NH, OH, OK, SC, TN, TX, and VA.

7 Important Disclosures for LendKey.

LendKey Disclosures

Refinancing via is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it  endorse,  any educational institution.

Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of  5 years and is reserved for applicants with FICO scores of at least 810.

As of 5/17/2022 student loan refinancing rates range from 2.05% APR – 5.25% Variable APR with AutoPay and 2.49% APR – 7.93% Fixed APR with AutoPay.

8 Important Disclosures for PenFed.

PenFed Disclosures

Fixed Rate Loan Terms: 5 years/60 monthly payments, 8 years/96 monthly payments, 12 years/144 monthly payments or 15 years/180 monthly payments. Annual Percentage Rate is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed rates range from 3.29% to 5.43% APR. Rates are subject to change without notice. Fixed APR: Fixed rates will not change during the term. This rate is expressed as an APR. Since there are no fees associated with this loan offer, the APR is the same percentage as the actual interest rate of the loan. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.