New Jersey’s got some serious student loan problems, and if you’re paying off loans right now, you’re probably feeling it.
A recent study from WalletHub showed that in 2024, New Jersey had the fifth-highest student loan payments in the country.
People here pay about $209 monthly for their student loans.
And that’s the same as what folks in New York pay, so if you’ve been thinking you’re shelling out a lot, you’re right.
But it’s not just us.
Our neighbors in Connecticut and Pennsylvania are dealing with it, too.
In Connecticut, the monthly payments are even higher at $213, and Pennsylvania isn’t far behind at $197.
So, as we can see, the Northeast is a pricey place to have student debt.
But here’s where it gets overwhelming: New Jerseyans owe a total of $45.3 billion in student loans.
And that’s the 11th highest in the country.
Across the U.S., student loan debt has increased by 66% in the last decade.
Nationwide, Americans owe more than $1.74 trillion in student debt.
For the typical borrower in New Jersey, the average debt is around $41,561 as of 2024.
If you have federal loans with an interest rate of 6.53%, the current rate for undergrad loans, and want to pay it off in 20 years, you’re looking at paying about $311 a month.
Without question, it’s a huge commitment to pay that for two decades.
And it’s not just young graduates struggling.
Shockingly, over 71,000 people in New Jersey who are 62 and older still pay off their student loans.
Collectively, this group owes about $3.81 billion.
That’s roughly 6% of older people in the state still digging into their pockets monthly to pay off loans they took out decades ago.
Only a handful of states, like California, have more older people in debt.
In California, for example, 247,000 people 62 and older owe $11 billion.
So it’s not just a New Jersey problem—it’s a national issue.
Evidently, student loan debt doesn’t just hit one age group.
People of all ages are feeling the weight of their loans.
Here’s how it breaks down in New Jersey:
- 244,600 people under 24 owe $3.85 billion.
- 440,100 people between 25 and 34 owe $15.56 billion.
- 311,200 people between 35 and 49 owe $14.22 billion.
- 149,000 people between 50 and 61 owe $7.9 billion.
Clearly, no one’s escaping this.
Now, you’ve probably heard about President Biden’s attempts to forgive student loans, but things haven’t exactly gone smoothly.
First, we had a temporary relief period during the pandemic, which was nice while it lasted, but that’s now over.
Then came Biden’s Plan B to forgive more debt, but courts have blocked those efforts repeatedly.
A Missouri judge halted the latest plan, while another judge in Georgia gave it the go-ahead.
Essentially, it’s a mess, and for now, it looks like we’ll be waiting a while before anything gets decided.
The whole situation is in legal limbo, and with elections around the corner, it’s anyone’s guess when things will get sorted out.
At the same time, Biden’s new SAVE plan (Saving on A Valuable Education) is supposed to offer some relief by lowering payments for people based on their income.
This could mean paying $0 a month for people with very low incomes.
But like everything else, this plan is also caught up in court battles.
So, while it’s a nice idea, it’s not helping anyone just yet.
And with the student loan payment pause lifted, borrowers are starting to feel the pressure to pay again.
So, what can you do if you’re stuck with student loan payments and no relief in sight?
The U.S. Department of Education has a few tips that might help.
First, check if you qualify for any kind of loan forgiveness, especially if you work in fields like teaching or healthcare.
There are also income-driven repayment plans that could lower your monthly payments based on how much you earn.
Plus, if you can’t make any payments right now, you can ask for forbearance or deferment, which pauses your payments temporarily, though interest may still pile up.
Additionally, you can take some practical steps on your own to manage your loans.
Start by making a budget to see where you can cut back and free up some money for your loans.
Another option is picking up a part-time job or side hustle to bring in some extra cash.
What’s more, some employers offer tuition reimbursement, so it’s worth checking if your company has any perks for furthering your education.
And, of course, always aim to make your payments on time to avoid extra fees or penalties.
Also, if you have a good credit score, refinancing your student loans could save you money on interest.
Just be careful if you move your debt to a credit card—those 0% intro rates don’t last forever, and you could pay more if the interest jumps later on.
But here’s some good news, especially if you’re working in mental health.
New Jersey has a program that can forgive up to $150,000 in student loans for mental health professionals.
It’s called the Behavioral Healthcare Provider Loan Redemption Program, and it’s designed to help deal with the shortage of mental health workers in the state.
You could qualify if you’re a licensed social worker, psychiatrist, psychologist, or other mental health professional.
For every two years you work in an approved nonprofit, school, or government agency, the state will pay off up to $50,000 of your student loans.
And if you work with kids, you can get an extra $5,000 a year, for up to six years, which means a total of $180,000 in possible forgiveness.
This program is part of the state’s effort to boost the number of mental health workers, especially those who work with young people.
The state has set aside $7 million for it in the 2025 budget, and 94 people have already taken advantage of it.
If you’re eligible, the application deadline is October 31, 2024.
So, don’t miss out if you think you might qualify—it could make a huge difference in paying off your loans.
At the end of the day, student loan debt in New Jersey is a big problem, but there are ways to manage it.
Whether it’s through federal forgiveness programs, smart budgeting, or state programs like mental health loan forgiveness, there are options to help lighten the load.
It might take some time, but with the right tools, you can work toward getting your debt under control.