By Libby Nelson
Students are graduating with more debt than ever before: about $33,000 for the average four-year college graduate with loans in the class of 2014. Indiana University, though, found a simple way to get students to borrow less: telling them how much they already owe when they’re taking out loans for the next academic year.
The university, where the average senior with loans graduated with nearly $29,000 in debt in 2012, began sending students letters each year telling them how much they’d already borrowed, what their interest rates were, and what their monthly payment would be after graduation.
And in response, students seem to have borrowed less. It’s too early to tell how much the behavior of individual borrowers changed, but in aggregate, students at IU took 11 percent less in federal loans during the 2013-14 school year. CONTINUE READING HERE