From The Motley Fool – Think about this statement for a minute: Education can reduce student loan debt.
Though it might sound like a paradox – after all, isn’t it the pursuit of education that has ignited the college debt crisis? – the Hoosier state university system has proved that educating students about loan debt can alter their behavior in a positive way.
Last year, the seven colleges making up the Indiana University system sent letters to students giving them a sneak peek at their post-graduate monthly loan payments. The missives were a wake-up call for many, who decided against taking out additional loans, according to Bloomberg. Overall, the university system saw an 11% decline in the amount of federal Stafford loan disbursements, which fell by about $31 million over the course of the academic year.