How Univ of Indiana Reduced Defaults

​According to Bloomberg Businessweek, ​

(I am not sure how they measured this but here is an excerpt from the article.)​

Indiana University decided to tell prospective borrowers what their monthly payment would be after graduation and how much they would owe.

That information​ alone​
had a dramatic effect on students’ willingness to borrow: Federal undergraduate Stafford loan disbursements at the public university dropped 11 percent, or $31 million, in the nine months that ended March 31 from a year earlier, according to U.S. Department of Education data. “We are having more contact with the student where they can say, ‘I don’t want this’ or ‘I want less,’ ” says Jim Kennedy, associate vice president and director of financial aid at the Indiana system. “If they know at all times their debt and the repayment, it helps with a lot of planning.”

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About defaultprevention

Default Prevention Specialist since 1998.
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