Although the majority of college students who take out student loans get federal loans, a sizable minority secure private student loans. While federal student loans typically have lower interest rates and the potential for loan forgiveness, there are several reasons why a college-bound student would take out a private student loan.
For example, a student may not meet the eligibility requirements for a federal student loan or could have a very good credit score and thus can get a private student loan at a good rate and repayment schedule. What’s more, private student loans are not limited in the amount one can borrow, unlike federal student loans.
In order to identify the colleges with the highest proportion of beginning students with private student loans, BrokeScholar sourced the latest data from the National Center for Education Statistics (NCES). We then went state by state, examining all colleges and universities with an undergraduate population of at least 1,000, and compiled the percentage of beginning students with “other student loans” aka ones that were not federal student loans.
Read on to find out which colleges and universities have the highest rate of students with private student loans.
Colleges With the Highest Rate of Private Student Loans in Every State
Looking over the 50 states, plus the District of Columbia, the colleges with the highest proportion of beginning students with private student loans do display some patterns. For example, several private not-for-profit Catholic schools rank as the No. 1 college in their state with the highest rate of private student loans: Mount St. Mary’s University in Maryland; Loyola University New Orleans in Louisiana; and Saint Joseph’s College of Maine in Maine, for example. Indeed, religious-affiliated colleges tend to have higher rates of private student loans, such as in the case of Illinois Wesleyan University in Illinois at 35%, Central Methodist University in Missouri at 25%, Taylor University (evangelical Christian) in Indiana at 23%
There are also some individual schools that really stand out. For instance, Hillsdale College in Michigan does not abide by federal regulations for higher education and, thus, doesn’t accept the FAFSA and federal student loans in general. As a result, 34% of beginning students at Hillsdale College have private student loans. Another interesting case is the Quaker-affiliated William Penn University in Iowa, where 96% of beginning students have private student loans.
Therefore, let’s break down, state by state, the colleges and universities that have the highest proportion of beginning, full-time students with private student loans:
Alabama
College or university: The University of Alabama
Percent of beginning students with private student loans: 9%
Average amount of loan aid received: $23,617
Graduation rate: 72%
Alaska
College or university: University of Alaska Fairbanks
Percent of beginning students with private student loans: 2%
Average amount of loan aid received: $13,596
Graduation rate: 38%
Arizona
College or university: Embry-Riddle Aeronautical University
Percent of beginning students with private student loans: 20%
Average amount of loan aid received: $29,106
Graduation rate: 20%
Arkansas
College or university: University of Arkansas Grantham
Percent of beginning students with private student loans: 13%
Average amount of loan aid received: $3,880
Graduation rate: 28%
California
College or university: Westmont College
Percent of beginning students with private student loans: 25%
Average amount of loan aid received: $4,810
Graduation rate: 73%
Colorado
College or university: Colorado School of Mines
Percent of beginning students with private student loans: 9%
Average amount of loan aid received: $24,651
Graduation rate: 83%
Connecticut
College or university: University of New Haven
Percent of beginning students with private student loans: 22%
Average amount of loan aid received: $22,327
Graduation rate: 66%
Delaware
College or university: University of Delaware
Percent of beginning students with private student loans: 8%
Average amount of loan aid received: $19,017
Graduation rate: 82%
District of Columbia
College or university: Catholic University
Percent of beginning students with private student loans: 9%
Average amount of loan aid received: $22,405
Graduation rate: 74%
Florida
College or university: The University of Tampa
Percent of beginning students with private student loans: 27%
Average amount of loan aid received: $9,478
Graduation rate: 62%
Georgia
College or university: Toccoa Falls College
Percent of beginning students with private student loans: 25%
Average amount of loan aid received: $6,143
Graduation rate: 53%
Hawaii
College or university: Hawaii Pacific University
Percent of beginning students with private student loans: 9%
Average amount of loan aid received: $22,900
Graduation rate: 42%
Idaho
College or university: Northwest Nazarene University
Percent of beginning students with private student loans: 13%
Average amount of loan aid received: $11,288
Graduation rate: 63%
Illinois
College or university: Illinois Wesleyan University
Percent of beginning students with private student loans: 35%
Average amount of loan aid received: $6,781
Graduation rate: 81%
Indiana
College or university: Taylor University
Percent of beginning students with private student loans: 23%
Average amount of loan aid received: $4,642
Graduation rate: 77%
Iowa
College or university: William Penn University
Percent of beginning students with private student loans: 96%
Average amount of loan aid received: $2,104
Graduation rate: 32%
Kansas
College or university: Baker University
Percent of beginning students with private student loans: 13%
Average amount of loan aid received: $8,291
Graduation rate: 62%
Kentucky
College or university: The Southern Baptist Theological Seminary
Percent of beginning students with private student loans: 23%
Average amount of loan aid received: $13,723
Graduation rate: 42%
Louisiana
College or university: Loyola University New Orleans
Percent of beginning students with private student loans: 6%
Average amount of loan aid received: $16,032
Graduation rate: 62%
Maine
College or university: Saint Joseph’s College of Maine
Percent of beginning students with private student loans: 33%
Average amount of loan aid received: $16,402
Graduation rate: 68%
Maryland
College or university: Mount St. Mary’s University
Percent of beginning students with private student loans: 12%
Average amount of loan aid received: $15,802
Graduation rate: 61%
Massachusetts
College or university: Worcester Polytechnic Institute
Percent of beginning students with private student loans: 39%
Average amount of loan aid received: $13,871
Graduation rate: 87%
Michigan
College or university: Hillsdale College
Percent of beginning students with private student loans: 34%
Average amount of loan aid received: $10,497
Graduation rate: 88%
Minnesota
College or university: University of St. Thomas
Percent of beginning students with private student loans: 52%
Average amount of loan aid received: $4,899
Graduation rate: 78%
Mississippi
College or university: University of Mississippi (Ole Miss)
Percent of beginning students with private student loans: 9%
Average amount of loan aid received: $20,037
Graduation rate: 68%
Missouri
College or university: Central Methodist University
Percent of beginning students with private student loans: 25%
Average amount of loan aid received: $2,805
Graduation rate: 47%
Montana
College or university: Carroll College
Percent of beginning students with private student loans: 6%
Average amount of loan aid received: $15,569
Graduation rate: 67%
Nebraska
College or university: Creighton University
Percent of beginning students with private student loans: 295
Average amount of loan aid received: $6,391
Graduation rate: 79%
Nevada
College or university: University of Nevada, Reno
Percent of beginning students with private student loans: 4%
Average amount of loan aid received: $12,013
Graduation rate: 63%
New Hampshire
College or university: Dartmouth College
Percent of beginning students with private student loans: 37%
Average amount of loan aid received: $5,335
Graduation rate: 94%
New Jersey
College or university: Monmouth University
Percent of beginning students with private student loans: 17%
Average amount of loan aid received: $14,337
Graduation rate: 69%
New Mexico
College or university: University of New Mexico
Percent of beginning students with private student loans: 2%
Average amount of loan aid received: $10,500
Graduation rate: 54%
New York
College or university: Alfred University
Percent of beginning students with private student loans: 34%
Average amount of loan aid received: $4,541
Graduation rate: 60%
North Carolina
College or university: Wingate University
Percent of beginning students with private student loans: 25%
Average amount of loan aid received: $10,227
Graduation rate: 61%
North Dakota
College or university: North Dakota State University
Percent of beginning students with private student loans: 28%
Average amount of loan aid received: $11,868
Graduation rate: 65%
Ohio
College or university: Ohio Northern University
Percent of beginning students with private student loans: 22%
Average amount of loan aid received: $16,089
Graduation rate: 76%
Oklahoma
College or university: Oral Roberts University
Percent of beginning students with private student loans: 25%
Average amount of loan aid received: $6,428
Graduation rate: 59%
Oregon
College or university: George Fox University
Percent of beginning students with private student loans: 11%
Average amount of loan aid received: $18,780
Graduation rate: 69%
Pennsylvania
College or university: Wilkes University
Percent of beginning students with private student loans: 32%
Average amount of loan aid received: $16,328
Graduation rate: 61%
Rhode Island
College or university: Roger Williams University
Percent of beginning students with private student loans: 25%
Average amount of loan aid received: $21,353
Graduation rate: 70%
South Carolina
College or university: The Citadel
Percent of beginning students with private student loans: 17%
Average amount of loan aid received: $26,781
Graduation rate: 73%
South Dakota
College or university: University of Sioux Falls
Percent of beginning students with private student loans: 18%
Average amount of loan aid received: $11,977
Graduation rate: 58%
Tennessee
College or university: King University
Percent of beginning students with private student loans: 9%
Average amount of loan aid received: $16,147
Graduation rate: 46%
Texas
College or university: Schreiner University
Percent of beginning students with private student loans: 20%
Average amount of loan aid received: $17,396
Graduation rate: 45%
Utah
College or university: Westminster College
Percent of beginning students with private student loans: 9%
Average amount of loan aid received: $17,786
Graduation rate: 63%
Vermont
College or university: Vermont Tech
Percent of beginning students with private student loans: 21%
Average amount of loan aid received: $15,574
Graduation rate: 54%
Virginia
College or university: Shenandoah University
Percent of beginning students with private student loans: 15%
Average amount of loan aid received: $19,715
Graduation rate: 64%
Washington
College or university: Walla Walla University
Percent of beginning students with private student loans: 29%
Average amount of loan aid received: $3,631
Graduation rate: 64%
West Virginia
College or university: West Virginia University
Percent of beginning students with private student loans: 15%
Average amount of loan aid received: $16,332
Graduation rate: 64%
Wisconsin
College or university: Beloit College
Percent of beginning students with private student loans: 46%
Average amount of loan aid received: $3,810
Graduation rate: 73%
Wyoming
College or university: University of Wyoming
Percent of beginning students with private student loans: 5%
Average amount of loan aid received: $14,983
Graduation rate: 60%
The Bottom Line on Private Student Loans at Colleges
Based on our research, the college with the highest rate of beginning students with private student loans is William Penn University in Iowa, at an astounding 96%. At the other end of the spectrum are Alaska’s University of Alaska Fairbanks at 2% and New Mexico’s University of New Mexico at 2% as well. Below you’ll find a table ranking the states in order of the percentage of students with private student loans:
Rank |
State |
College/University |
% of Beginning Students with Private Student Loans |
Avg. Amount of Loan Aid Received |
Graduation Rate |
1 |
Iowa |
William Penn University |
96% |
$2,104 |
32% |
2 |
Minnesota |
University of St Thomas |
52% |
$4,899 |
78% |
3 |
Wisconsin |
Beloit College |
46% |
$3,810 |
73% |
4 |
Massachusetts |
Worcester Polytechnic Institute |
39% |
$13,871 |
87% |
5 |
New Hampshire |
Dartmouth College |
37% |
$5,335 |
94% |
6 |
Illinois |
Illinois Wesleyan University |
35% |
$6,781 |
81% |
7 |
Michigan |
Hillsdale College |
34% |
$10,497 |
88% |
8 |
New York |
Alfred University |
34% |
$4,541 |
60% |
9 |
Maine |
Saint Joseph's College of Maine |
33% |
$16,402 |
68% |
10 |
Pennsylvania |
Wilkes University |
32% |
$16,328 |
61% |
11 |
Nebraska |
Creighton University |
29% |
$6,391 |
79% |
12 |
Washington |
Walla Walla University |
29% |
$3,631 |
64% |
13 |
North Dakota |
North Dakota State University |
28% |
$11,868 |
65% |
14 |
Florida |
University of Tampa |
27% |
$9,478 |
62% |
15 |
California |
Westmont College |
25% |
$4,810 |
73% |
16 |
Georgia |
Toccoa Falls College |
25% |
$6,143 |
53% |
17 |
Missouri |
Central Methodist University |
25% |
$2,805 |
47% |
18 |
North Carolina |
Wingate University |
25% |
$10,227 |
61% |
19 |
Oklahoma |
Oral Roberts University |
25% |
$6,428 |
59% |
20 |
Rhode Island |
Roger Williams University |
25% |
$21,353 |
70% |
21 |
Indiana |
Taylor University |
23% |
$4,642 |
77% |
22 |
Kentucky |
The Southern Baptist Theological Seminary |
23% |
$13,723 |
42% |
23 |
Connecticut |
University of New Haven |
22% |
$22,327 |
66% |
24 |
Ohio |
Ohio Northern University |
22% |
$16,089 |
76% |
25 |
Vermont |
Vermont Technical College |
21% |
$15,574 |
54% |
26 |
Arizona |
Embry-Riddle Aeronautical University |
20% |
$29,106 |
70% |
27 |
Texas |
Schreiner University |
20% |
$17,396 |
45% |
28 |
South Dakota |
University of Sioux Falls |
18% |
$11,977 |
58% |
29 |
New Jersey |
Monmouth University |
17% |
$14,337 |
69% |
30 |
South Carolina |
Citadel Military College of South Carolina |
17% |
$26,781 |
73% |
31 |
Virginia |
Shenandoah University |
15% |
$19,715 |
64% |
32 |
West Virginia |
West Virginia University |
15% |
$16,332 |
64% |
33 |
Arkansas |
University of Arkansas Grantham |
13% |
$3,880 |
28% |
34 |
Idaho |
Northwest Nazarene University |
13% |
$11,288 |
63% |
35 |
Kansas |
Baker University |
13% |
$8,291 |
62% |
36 |
Maryland |
Mount St. Mary's University |
12% |
$15,802 |
61% |
37 |
Oregon |
George Fox University |
11% |
$18,780 |
69% |
38 |
Alabama |
The University of Alabama |
9% |
$23,617 |
72% |
39 |
Colorado |
Colorado School of Mines |
9% |
$24,651 |
83% |
40 |
District of Columbia |
Catholic University |
9% |
$22,405 |
74% |
41 |
Hawaii |
Hawaii Pacific University |
9% |
$22,900 |
42% |
42 |
Mississippi |
University of Mississippi |
9% |
$20,037 |
68% |
43 |
Tennessee |
King University |
9% |
$16,147 |
46% |
44 |
Utah |
Westminster College |
9% |
$17,786 |
63% |
45 |
Delaware |
University of Delaware |
8% |
$19,017 |
82% |
46 |
Louisiana |
Loyola University New Orleans |
6% |
$16,032 |
62% |
47 |
Montana |
Carroll College |
6% |
$15,569 |
67% |
48 |
Wyoming |
University of Wyoming |
5% |
$14,983 |
60% |
49 |
Nevada |
University of Nevada-Reno |
4% |
$12,013 |
63% |
50 |
Alaska |
University of Alaska Fairbanks |
2% |
$13,596 |
38% |
51 |
New Mexico |
University of New Mexico |
2% |
$10,500 |
54% |
It’s crucial to remember that student loans are not the only way to get money to help pay for college. Applying for scholarships and winning one (or more) is one of the best ways to earn financial aid that doesn’t have to be paid back — unless, for example, you lose your scholarship. Hence, if you’re looking for financial aid in order to attend college, check out BrokeScholar’s huge collection of college scholarships and grants and see which ones you qualify for.