Amy Glynn, VP of Financial Aid and Community Initiatives, at CampusLogic was recently published in the “Student Aid Perspectives” section of the NASFAA newsletter. In it, she points to research showing that loan letters are helping to curb borrowing while keeping students aware of what repayment looks like. In fact, since instituting its loan letter process in 2012, Indiana University (IU) has experienced an 18% reduction in student borrowing.
“If we want students to borrow responsibly, we need to ensure that they know how much they’ve borrowed. Sadly, a recent Brookings study found that 28% of federal loan borrowers believed that they had no federal loans. Fourteen percent said they didn’t have any student debt. Half of first-year students seriously underestimated how much they had borrowed. If we want students to borrow responsibly, we need to ensure they know how much they have borrowed in aggregate student loans. Providing this information to students annually keeps it top-of-mind, to enable more thoughtful consumption.”
More and more schools are following IU’s lead, Glynn says. Read the full article here to learn how loan letters positively impact student behavior and help to limit debt.