26:["$","$L27",null,{"category":"$28","relatedArticles":[{"id":"cG9zdDo5NzIxNQ==","databaseId":97215,"postId":97215,"author":{"node":{"id":"dXNlcjo5Nw==","databaseId":97,"userId":97,"avatar":{"url":"https://secure.gravatar.com/avatar/5d2f0e5dd8917ea697416a7d9dd0e94f?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Dori Zinn has been covering personal finance for nearly a decade. Her writing has appeared in Wirecutter, Quartz, Bankrate, Credit Karma, Huffington Post and other publications. She previously worked as a staff writer at Student Loan Hero. Zinn is a past president of the Florida chapter of the Society of Professional Journalists and won the national organization's \"Chapter of the Year\" award two years in a row while she was head of the chapter. She graduated with a bachelor's degree from Florida Atlantic University and currently lives in South Florida.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Dori","fullName":"Dori Zinn","lastName":"Zinn","name":"Dori Zinn","postCount":{"pageInfo":{"offsetPagination":{"total":73,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"dzinn","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybTo5MA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":90,"categoryId":90,"link":"https://smartasset.com/student-loans/articles","name":"Student Loans","postCount":{"pageInfo":{"offsetPagination":{"total":52,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"student-loans","ancestors":null,"parent":null,"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$29","date":"2019-07-11T14:57:41","excerpt":"

\n","featuredImage":{"id":"cG9zdDoxODc2MTI=","databaseId":187612,"altText":"Deferment","date":"2023-02-16T02:07:26","fileSize":21438,"mimeType":"image/jpeg","modified":"2023-02-16T02:07:26","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2019/07/student-loan-debt-picture-id888236948-1.jpg","__typename":"MediaItem"},"modified":{"datetime":"2023-3-28","readable":"March 28, 2023"},"multipleBylinesByRole":{"editedBy":null,"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":null,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/student-loans/deferment","metaDesc":"Deferment and forbearance are two options for putting off student loan payments you can't make right now. Learn how they work and how to qualify.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":6,"title":"Deferment and Forbearance of Student Loans - SmartAsset","__typename":"PostTypeSEO"},"slug":"deferment","status":"publish","title":"Deferment and Forbearance of Student Loans","uri":"/student-loans/deferment","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":{"id":"dXNlcjo5Nw==","databaseId":97,"userId":97,"avatar":"$2a","description":"Dori Zinn has been covering personal finance for nearly a decade. Her writing has appeared in Wirecutter, Quartz, Bankrate, Credit Karma, Huffington Post and other publications. She previously worked as a staff writer at Student Loan Hero. Zinn is a past president of the Florida chapter of the Society of Professional Journalists and won the national organization's \"Chapter of the Year\" award two years in a row while she was head of the chapter. She graduated with a bachelor's degree from Florida Atlantic University and currently lives in South Florida.","additionalMeta":"$2b","email":null,"firstName":"Dori","fullName":"Dori Zinn","lastName":"Zinn","name":"Dori Zinn","postCount":"$2c","slug":"dori-zinn","__typename":"User"},"editedBy":null,"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybTo5MA==","children":"$2f","databaseId":90,"categoryId":90,"link":"https://smartasset.com/student-loans/articles","name":"Student Loans","postCount":52,"slug":"student-loans","ancestors":null,"parent":null,"__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

Deferment and forbearance are options that people struggling to keep up with their student loans can use to make sure they don’t get into serious trouble. Falling behind on your payments can hurt your credit or lead your lenders to garnish your wages, neither of which outcomes anyone wants. If you are struggling with loan payments, a financial advisor may be able to help.

","

Deferment and Forbearance Defined

","

Both deferment and forbearance allow you to temporarily stop making payments or reduce your payments on your student loans without causing you to fall behind on what you owe. However, each program differs in the type of relief it provides.

","

Even though both allow you to halt or reduce your student loan payments, you may not be responsible for interest that accrues during deferment. This depends on the type of loan you have and if it’s subsidized or unsubsidized:

","

Interest Responsibility for Deferment

","

Responsible for Interest	Not Responsible for Interest
– Direct Subsidized Loans – Subsidized Federal Stafford Loans – Federal Perkins Loans – The subsidized portion of Direct Consolidation Loans – The subsidized portion of Federal Family Education Loans (FFEL) Consolidation Loans	– Direct Unsubsidized Loans – Unsubsidized Federal Stafford Loans – Direct PLUS Loans – FFEL PLUS Loans – The unsubsidized portion of FFEL and Direct Consolidation Loans

","

In forbearance, you’re on the hook for the interest that accrues on any type of loan while you aren’t making payments.

","

Interest that accrues during deferment and forbearance can be capitalized, or added to your principal balance, or you can pay it off as it accrues. If you have it added to your principal balance, the total amount you owe and your monthly payments may cost more. This means it could take you longer to pay back your loans.

","

Deferment Eligibility Requirements

","

To qualify for deferment, you’ll need to meet a few requirements.

","$31","

Remember that even if you qualify for deferment, you might still be on the hook to pay for the interest that adds up during that deferment period, depending on the type of loan.

","

Forbearance Eligibility Requirements

","

If you’re exploring forbearance as an option, there are two different types: general and mandatory.

","

General forbearance is available if you’re experiencing problems affording your basic needs or medical expenses. It may also be available if you’ve had a recent change in employment. It may be wise to talk to your loan provider to see if your specific situation qualifies you for forbearance.

","

On the other hand, only Direct and FFEL loans qualify for mandatory forbearance. It becomes available if:

","

You’re serving a medical or dental internship or residency program.
The total amount you owe each month for all your loans is 20% or more of your total monthly gross income (available up to three years, and qualifies on Perkins loans, too).
You’re serving in AmeriCorps and received a national service award.
Your current teaching status would qualify you for teacher loan forgiveness.
You qualify for partial repayment through the U.S. Department of Defense Student Loan Repayment Program.
You’re a member of the National Guard, but not eligible for military deferment.

","

Both general and mandatory forbearance can be granted for up to 12 months at a time. If you have a Perkins loan, you have a three-year cumulative limit for general forbearance. Direct and FFEL loans don’t have the same limitation, but your loan provider may have its own limitations.

","

Since there is a 12-month term, you’ll need to apply for forbearance each time you need it. Some loan providers may set a maximum limit on how many times you can receive general forbearance, but mandatory forbearance doesn’t have the same restrictions.

","

Deferment and Forbearance Alternatives

","

If you don’t qualify for deferment or forbearance, you may be able to access other debt assistance programs, such as:

","$32","

Bottom Line

","

Falling behind on student loan payments can hurt your financial future for years to come. You may be able to avoid this, though, by using deferment or forbearance to hit the pause button on your payments. While these programs are meant to help you, interest may still add up while you’re not making payments, which can potentially raise the cost of your payments down the road.

","

To find out if you qualify for either deferment or forbearance, you’ll need to submit a request on the U.S. Department of Education’s website. Your specific financial situation will dictate which choice is best for you. Most requests have their own unique form to complete, meaning there is no form for both deferment and forbearance.

","

Tips for Paying Back Student Loans

","$33","

Photo credit: ©iStock.com/zimmytws, ©iStock.com/Anchiy, ©iStock.com/MonthiraYodtiwong

"],"experts":null,"link":"/student-loans/deferment","published":{"datetime":"2019-7-11","readable":"July 11, 2019"},"shareInfo":{"title":"Deferment and Forbearance of Student Loans","origin":"/student-loans/deferment"},"isNewsArticle":false},{"id":"cG9zdDoxODcxOA==","databaseId":18718,"postId":18718,"author":{"node":{"id":"dXNlcjoyOA==","databaseId":28,"userId":28,"avatar":{"url":"https://secure.gravatar.com/avatar/c2129e3c852ac8063af4562fe9605e22?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She's worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children. Rebecca also holds the Certified Educator in Personal Finance (CEPF®) designation.","additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Rebecca","fullName":"Rebecca Lake, CEPF®","lastName":"Lake, CEPF®","name":"Rebecca Lake, CEPF®","postCount":{"pageInfo":{"offsetPagination":{"total":1235,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"rlake","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybTo5MA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":90,"categoryId":90,"link":"https://smartasset.com/student-loans/articles","name":"Student Loans","postCount":{"pageInfo":{"offsetPagination":{"total":52,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"student-loans","ancestors":null,"parent":null,"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$34","date":"2014-08-05T12:30:39","excerpt":"

These days, the hardest part about getting through college often isn’t the workload – it’s figuring out how to pay for it. With the total student loan debt surpassing $1.6 trillion, many of today’s grads are leaving school with a …

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Pros of PLUS Loans for Parents

","

If you’re considering taking out a loan to help pay for your kid’s college then there are plenty of benefits of a PLUS loan. Here are the things that you might find the most beneficial if you’re considering a PLUS loan for your situation:

","

Pro #1: Fixed Interest Rates

","

PLUS loans come with an interest rate that’s fixed for the life of the loan, which means you’ll know exactly how much you’ll pay in interest in the long run. As of July 1, 2015, the current interest rate for Parent PLUS loans is 6.84%. While this may seem high compared to the 4.29% rate undergraduates pay for direct loans, it’s still lower than many of the rates offered by private lenders.

","

Pro #2: Flexible Repayment Options

","

Parents can choose the standard, extended or graduated repayment plan for a PLUS loan. Depending on which plan you choose, you’ll have anywhere from 10 to 25 years to repay the loan. If you’re having trouble keeping up with the payments, you have the option of switching to a different repayment plan, taking a deferment or requesting a forbearance. Deferment means you won’t owe a payment for a set period of time and interest won’t accrue. Forbearance also lets you postpone payments but the interest on the loan keeps adding up.

","

Pro #3: Tax-Deductible Interest

","

The interest you pay towards a student loan, including a PLUS loan, may score you a break at tax time. Currently, the most you can deduct is either $2,500 or the total amount of student loan interest you paid, whichever is less. The amount of the deduction you’re eligible for is based on your income. The full deduction is available to single filers earning less than $60,000 and married couples making less than $125,000. The deduction is phased out completely at $75,000 and $155,000 respectively.

","

Cons of PLUS Loans for Parents

","

PLUS loans aren’t the right fit for everyone. They can be expensive and can hurt some people for many years to come because it is still a loan. Here are the largest cons of getting a PLUS loan for parents:

","

Con #1: No Limits on Borrowing

","

Unlike other types of student loans, there’s no limit as to how much a parent can borrow through a PLUS loan, as long as it doesn’t exceed the cost of your child’s education. While this may seem like an advantage, it can actually work against you if you end up taking on more debt than you can reasonably handle. You have to consider whether those large monthly payments will still be affordable if your situation were to change unexpectedly. It’s also worth thinking about how the long-term cost impacts other financial priorities, such as saving for retirement.

","

Con #2: No Grace Period

","

Typically, when you take out a student loan you have six months from the time you graduate to begin repaying the loan. With a PLUS loan, parents are expected to start making payments within 60 days of the loan being disbursed. You can, however, request a deferment period if your student is still enrolled at least half-time or for a period of six months following their graduation.

","

Con #3: Dangers of Default

","

If you fall behind on your PLUS loan payments you run the risk of going into default. Once you default, you open yourself up to a number of potentially nasty consequences. Your lender may ask you to repay the remaining balance in full. If you can’t, they may decide to sue and seek to garnish your wages or seize your tax refunds. You’ll also be responsible for paying court costs, attorney fees and collection costs. You won’t be eligible to take out any other student loans and your credit will take a serious hit.

","

The Bottom Line

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If getting your child through college is your number one goal, you have to know what it is you’re agreeing to when you take out a PLUS loan. Borrowing $100,000 just to keep your student from falling into debt isn’t really worth it if it puts you in a tight spot. Before taking out one of these loans, you need to carefully evaluate your financial situation and your long-term goals to see whether taking on more debt makes sense.

","

Tips for Managing Your Finances

","$3d","

Photo credit: ©iStock.com/jacoblund, ©iStock.com/AndreyPopov, ©iStock.com/twinsterphoto

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\n","featuredImage":{"id":"cG9zdDoxNzk1NTE=","databaseId":179551,"altText":"How do you qualify for a stafford loan?","date":"2022-11-30T02:05:50","fileSize":35712,"mimeType":"image/jpeg","modified":"2022-11-30T02:05:50","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2019/07/money-cost-saving-for-goal-and-success-in-school-education-concept-us-picture-id1025444618-1.jpg","__typename":"MediaItem"},"modified":{"datetime":"2023-3-28","readable":"March 28, 2023"},"multipleBylinesByRole":{"editedBy":null,"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":null,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/student-loans/stafford-loan","metaDesc":"The Stafford loan is the most popular low-cost federal student loan, with both subsidized and unsubsidized types. Learn what they cost and how to qualify.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":5,"title":"What Is a Stafford Loan, and How Do You Qualify? - SmartAsset","__typename":"PostTypeSEO"},"slug":"stafford-loan","status":"publish","title":"What Is a Stafford Loan, and How Do You Qualify?","uri":"/student-loans/stafford-loan","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":{"id":"dXNlcjo5Nw==","databaseId":97,"userId":97,"avatar":"$3f","description":"Dori Zinn has been covering personal finance for nearly a decade. Her writing has appeared in Wirecutter, Quartz, Bankrate, Credit Karma, Huffington Post and other publications. She previously worked as a staff writer at Student Loan Hero. Zinn is a past president of the Florida chapter of the Society of Professional Journalists and won the national organization's \"Chapter of the Year\" award two years in a row while she was head of the chapter. She graduated with a bachelor's degree from Florida Atlantic University and currently lives in South Florida.","additionalMeta":"$40","email":null,"firstName":"Dori","fullName":"Dori Zinn","lastName":"Zinn","name":"Dori Zinn","postCount":"$41","slug":"dori-zinn","__typename":"User"},"editedBy":null,"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybTo5MA==","children":"$44","databaseId":90,"categoryId":90,"link":"https://smartasset.com/student-loans/articles","name":"Student Loans","postCount":52,"slug":"student-loans","ancestors":null,"parent":null,"__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

If you’re in search of financial help for higher education, you may have explored different scholarships and grants to pay the way. Gifted money is a great way to pay for school without having to worry about paying it back after graduation. However, if you don’t have all your expenses covered through scholarships and grants, you might need to consider student loans to fill in the gaps. If you’re exploring federal aid, Stafford loans might be an option. Consider working with a financial advisor as you explore education expenses and debt repayment.

","

What Is a Stafford Loan?

","

A Stafford loan is a federal student loan provided by the government to help pay for your education while you’re attending a university, community college, trade or technical school. Interest rates are adjusted annually on July 1 for these types of federal loans.

","

Stafford loans are now referred to as direct subsidized loans or direct unsubsidized loans. The difference between subsidized and unsubsidized loans is who pays for the accrued interest of the loan while you’re in school and how much you may be able to borrow.

","

A subsidized loan is only available to undergraduate students in financial need. The Department of Education pays the interest that adds up on your behalf while you’re in school at least half-time, as well as during the six-month grace period after graduation and during deferment or forbearance periods. An unsubsidized loan is available for both graduate and undergraduate students and isn’t based on financial need. The student is responsible for the interest that builds up while in school. Payments could be more costly than those for a subsidized loan because of that accrued interest.

","

If a subsidized loan doesn’t cover all your college costs, you can take out an unsubsidized loan, too. The aggregate loan amount for unsubsidized loans is capped at $31,000 for undergraduate students considered dependents and whose parents don’t qualify for direct PLUS loans. Undergraduate independent students may be allowed to borrow up to $57,500, while graduate students may be allowed to borrow up to $138,500.

","

These types loans have fixed interest rates determined by the government, come with a fee and allow the student to borrow for up to 150% of the length of the program they’re enrolled in. For example, if you’re attending a four-year college, you would be able to borrow these loans for up to six years.

","

How to Qualify for a Stafford Loan

","

$\"How$

","

What you need to get a Stafford loan depends on your financial standing. Students or parents of the student must first complete the Free Application for Federal Student Aid (FAFSA). Next, you’ll receive an award letter that details if you qualify for a Stafford loan. Your financial need determines if you’ll get a direct subsidized loan. If you don’t qualify, then you may receive a direct unsubsidized loan.

","

If you do qualify for one of these loans and you’re ready to accept the federal aid, you’ll need to submit a Mastery Promissory Note (MPN). This is a legal document which states that you promise to pay back your loans in full, including any fees and accrued interest, to the U.S. Department of Education. The school of your choice will determine how much money you’re eligible to receive and the funds go straight to your school – not to you. Since you can receive money based on your need or school enrollment – not your credit score – only your application is required.

","

Stafford Loan Alternatives

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If you’ve exhausted all of your financial aid options, it might be time to explore other means to pay for school.

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Direct PLUS Loans

","

Direct Plus loans are federal loans that are available to graduate or professional students, or parents of undergraduate students. They require a credit check and you might be required to make payments while you or your child is in school. However, you could request deferment and make payments after you or your child graduates or drops below half-time.

","

Private Student Loans

","

If you can’t get any further federal aid, you may consider private student loans. Instead of coming from the U.S. Department of Education, these types of loans are issued from private issuers, such as banks, credit unions or online lenders. If you’re not sure where else to look, contact your school’s financial aid office. It may have scholarships, grants or other small loans available that you might qualify for.

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Bottom Line

","

","

College is expensive and not everyone can afford to pay for it out of pocket. Tapping into financial resources, including Stafford loans like subsidized and unsubsidized loans, as well as direct Plus loans and private student loans, may help. Don’t be afraid to contact your school’s financial aid office for even more resources to pay for school.

","

Tips for Student Loan Borrowers

","$46","

Photo credit: ©iStock.com/William_Potter, ©iStock.com/utah778, ©iStock.com/BrianAJackson

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Besides comparing colleges based on their size and academic programs, high school graduates need to consider whether they’ll take advantage of in-state scholarships and grants or enroll in an out-of-state school. After, all some states do a better job of providing students with a high quality education. Wondering how your state’s public colleges compare to […]

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This is the third annual edition of this study. Read the 2016 study here.

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Study Specifics

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Our study compares four-year public colleges and universities in each state using multiple metrics, including the undergraduate graduation rate, the average net price, the 20-year return on investment and the student-faculty ratio. All of these factors are averages weighted based on each school’s total undergraduate enrollment. This means that larger schools have a greater impact on the overall average in every state.

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We also calculated the in-state attendance rate to assess whether states can effectively educate their own residents. In the end, we gave each state a grade. The top 15% of states received an A or A- and the bottom 15% received an F. To learn more about how we completed our analysis, read the full methodology below.

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Key Findings

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Virginia is No. 1. Each time we look at the best states for higher education, Virginia appears in the top 10. It ranked second in both the 2015 and 2016 edition of our analysis. But this year, Virginia took the top spot.
Two-way ties. New Jersey and North Carolina received the same raw score in our ranking. Both states tied for fifth place. So did Indiana and New York, which tied for 10th place.
Nevada is No. 50. The student-faculty ratio for colleges in the Silver State is higher than average. Plus, the average graduation rate is low. Georgia, Maine and Idaho are some of the other states that ranked poorly.

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1. Virginia

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Virginia is the top state for a higher education in 2017. The state effectively educates its students. It has one of the highest average graduation rates in our study (70%). And the average 20-year return on investment for graduates is $442,660. That’s the fourth-highest ROI in our study. For 2017, both the University of Virginia and the College of William & Mary rank among the top 10 public universities in the nation, according to U.S. News & World Report.

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Related Article: 529 Plans in Virginia

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2. California

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California consistently ranks as one of the top states for higher education. But since last year, it has slipped from the top spot in our study. However it still rates well for a number of reasons. For example, the state’s average graduation rate is 63%. That’s the eighth-highest in the country. Plus, the state of California has the second-highest return on investment in the U.S. Graduates earn an average ROI of $459,656 over the course of 20 years.

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3. Delaware

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For the third year in a row, Delaware ranks as the state with the highest average graduation rate in the country. About 73% of the state’s students who attend a public university earn a bachelor’s degree. At 79%, the University of Delaware’s graduation rate is slightly higher than the state’s weighted rate. Over the course of 20 years, the average return on investment for Delaware State University and UD alumni is roughly $434,034.

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4. Iowa

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What makes Iowa one of the best states for higher education? For one thing, the average graduation rate across its public colleges and universities is 68.6%. That’s the third-highest graduation rate in the nation. The 20-year ROI for graduates of schools like Iowa State University and the University of Iowa is $387,049.

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5. (tie) New Jersey

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Across all public colleges and universities in the Garden State, the average graduation rate is 66%, which is the fourth-highest rate in the U.S. There are nearly 16 students for every faculty member and the average 20-year return on investment for graduates of New Jersey’s higher education system is $394,232. That’s the 10th-highest ROI in the country.

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5. (tie) North Carolina

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Nearly 65,600 high school students in North Carolina enrolled in one of the state’s public two- or four-year universities in 2014. So the number of first-time, in-state students is equal to 65% of the state’s 2014 high school graduates. This means that North Carolina has the ninth-highest in-state attendance rate in the U.S.

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In addition to doing a relatively good job of educating its own residents, public colleges and universities in the Tar Heel State are relatively affordable. Across its many four-year schools, the average net price for the 2014-2015 school year was just $11,239, according to the IPEDS data center at the National Center for Education Statistics.

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7. Wyoming

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The Cowboy State is home to the University of Wyoming. Compared to other flagship universities, UW is fairly small. During the 2015-2016 school year, only about 10,045 students were enrolled in the university. But whatever the school lacks in size, it makes up for with the quality of education that it offers its students.

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The student-faculty ratio at UW is 14:1 and graduates get an average return on investment of $442,000 within a 20-year time span, according to Payscale. That’s the fifth-highest ROI in the nation and it’s 15.3% higher than what we found in the 2016 edition of our analysis.

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8. Vermont

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Vermont ranks as the eighth-best state for higher education. College classes are typically small compared to the national average. IPEDS data reveals that Vermont’s student-faculty ratio is just under 14:1. The weighted graduation rate in the state is 65% and the average 20-year return on investment across schools like the University of Vermont is $389,000.

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9. Michigan

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Michigan has more than a dozen public colleges and universities, including the University of Michigan. The school’s campus located in Ann Arbor ranks fourth in the 2017 edition of the U.S. News & World Report’s list of the best public colleges and universities. Ann Arbor also ranks as one of the best college towns, according to the most recent edition of our study.

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In terms of its average graduation rate and return on investment, Michigan falls near the middle of the pack. The weighted graduation rate across all of its public colleges is 54% and the 20-year ROI for graduates is around $351,158. But the in-state attendance rate is the 12th-highest rate in the country.

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10. (tie) Indiana

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This year, Indiana makes its debut appearance on our list of the best states for higher education. Its low net price helped it rank well. The average net price for undergraduate students across Indiana’s four-year public institutions was just $11,110 for the 2014-2015 school year. The state’s weighted graduation rate is 49% and the 20-year return on investment is $341,347.

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10. (tie) New York

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For students who live in New York, staying in-state for college could be worth considering. Although New York City has a high cost of living and high tax rates, attending college in the Empire State doesn’t have to be an expensive endeavor. The average net price for students attending four-year public schools was $11,689 for the 2014-2015 school year. That’s the 13th lowest in the country.

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Related Article: 529 Plans in New York

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Data & Methodology

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To find the best states for higher education, SmartAsset calculated averages for the following factors:

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Our averages were weighted using the total undergraduate enrollment at each school. Then, we found the in-state attendance rate in each state using data from the Western Interstate Commission for Higher Education.

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The in-state attendance rate reflects the number of first-time, in-state students in each state in 2014 as a percentage of the total number of students who graduated from high school in 2014. We used 2014 data because the 2015 dataset was incomplete. Note that we also used data for two-year and four-year public colleges. Some students attend community colleges with the intention of transferring to four-year schools.

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To complete our study, we ranked all 50 states across all five of our factors. Then we averaged our rankings, giving double-weight to the graduation rate and full weight to the other metrics. Then we assigned each state a grade on a curve. The top 15% of states received an A or A- and the bottom 15% received an F.

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Nick Wallace completed the data analysis for this study.

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Questions about our study? Contact us at press@smartasset.com

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