Texas Student Loan Debt and Financial Aid Statistics

Texas Student Loan Debt and Financial Aid Statistics

Federal student loan debt statistics in Texas

  • Texas residents owe a total of $120 billion in student loan debts
  • This is the 2nd largest total debt of all 50 states plus Washington DC and Puerto Rico
  • Although the average debt per borrower of $32,920 is the 38th largest average student debt per borrower in the country =- just ahead of Indiana
  • A total of 3.645 million people in Texas hold student debt making Texas the state with the second-highest number of borrowers in the country. 
  • However, this is only 12.34% of the population of Texas – placing Texas in the 35th position when it comes to the percentage of student loan borrowers per capita and slightly lower than Tennessee
  • Of these borrowers, 52.30% are under the age of 35.

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

  • The average student loan debt for borrowers who are Texas residents is $32,920
  • This makes Texas the state with the 38th-largest average student loan debt 
  • The average student debt in Texas is below the national average of $37,787 by $4,867
  • Within this average, the amount owed by Texans varies greatly:
    • 16.90% of borrowers owe less than $5k
    • 20.30% of borrowers owe between $20k and $40k
    • 1.60% of borrowers owe more than $200k

How much does Texas residents borrow each year?

  • 28.30% of Texas undergraduate students take out federal student loans
  • This means 42 other states have a higher percentage of undergraduates choosing to take or qualifying for federal student loans
  • For those at 2-year colleges, this number falls way down to 14% and is the 36th state in the country
  • However, those at 2-year schools who are approved get $5,462 per year on average
  • This is the 30th most per student at 2-year colleges of any state
  • Significantly more students at 4-year schools receive student loans at 38.80%
  • This ranks in a similar position of 38th place out of the 50 states and DC. 
  • These students are awarded $6,843 per year – the 22nd most in the country.

State-level financial aid for students in Texas 

  • Texas is the state that spends the 2nd most state funds on financial aid for students
  • In total, Texas spends $1.2 billion on state-level financial aid programs per year
  • This works out at around 0.39% of the gross state product (GSP)
  • While Texas has the nation’s 2nd largest budget for student financial aid, it only ranks 29th as a percentage of GSP
  • This works out at around $1,235 per undergraduate student in the state – the 11th most of any state in the country
  • Just over $1 billion is distributed to students in the form of grants meaning that none of this amount is repaid. 
  • The remaining $180 million is distributed between some other programs – some of which may be due to be repaid.