Alabama Student Loan Debt and Financial Aid Statistics

Alabama Student Loan Debt and Financial Aid Statistics

Federal student loan debt statistics in Alabama

  • Alabama has the 23rd largest student loan debt of any state in the country
  • In total, the residents of Alabama owe $23.5 billion
  • This works out to an average of $37,137 per borrower
  • This is the 12th largest average amount owed per borrower of any state in the country
  • In total, there are 632,800 people in the state of Alabama with student loan debt
  • 12.56% of the population of Alabama have student loan debt – this is the 30th highest percentage of any state in the USA
  • 50.30% of the borrowers are under the age of 35 – this is the 12th lowest percentage in the country under the age of 35

How much student loan debt does the average Alabama resident have?

  • The average Alabama borrower owes $37,137
  • This is the 12th-largest average amount owed per borrower in the country
  • It is also $650 below the national average of $37,787
  • 16.00% of borrowers in Alabama owe less than $5,000
  • 20.90% owe between $20,000 and $40,000
  • 0.21% of borrowers owe more than $200,000
  • This is a smaller percentage than any state in the country plus Washington DC and Puerto Rico

How much do Alabama residents borrow each year?

  • 36.70% of Alabama undergraduate students take out student loans
  • This is the 26th highest in the country
  • At 2-year colleges, this number sits at 12.90% – the 41st highest
  • At 4-year colleges, this jumps to 47.30%
  • Students at 2-year colleges are awarded $5,162 per year on average in the form of loans to cover tuition fees and other living expenses
  • This is 35th in the country for the amount awarded to students at 2-year colleges
  • At 4-year colleges in Alabama, students are awarded $7,174 on average
  • This is the 7th highest in the country

State-level financial aid for students in Alabama

  • Alabama spends $80.3 million per year of state funds on student financial aid
  • This is the 32nd-largest budget for student financial aid in the country
  • 0.72% of the Gross State Product (GSP) is spent on student financial aid
  • This is the 6th highest GSP percentage spend on student financial aid of any state in the country
  • This amount works out to $453 per undergraduate student
  • Of this, $72.4 million is distributed in the form of needs-based grants – this is money that does not need to be repaid by the students in the future
  • The remaining $7.9 million is paid out through other programs – some of which may be liable for repayment in the future