I’m surprised no one thought of this before. Since 2012, Indiana University has been sending its students a letter with information about their college debt—how much they will owe and what their payments will be once they graduate from the university (or leave without graduating).
IU’s director of financial literacy, Phil Schuman, told the Chronicle of Higher Education:
In a lot of cases, students borrow money, they’re 18 years old, they don’t know what the ramifications are. The debt letter provides them with an update of: You’ve borrowed this money, you’re going to have to pay this back after you graduate. It’s reactive in that it’s providing them an update of where they’re at, but it’s also proactive in that they can start thinking about whether or not they want to take out more money for the next semester or if they can find an alternative.
Schuman also pointed out that total debt has gone down, due in part to this action but also to the system’s policy of advising student in other ways.
Interestingly, the Indiana legislature has just passed a law requiring Indiana’s public universities (those where students receive state aid) to provide this information.