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What Happens When You Warn Students About Their Loan Debt? (The Pew Charitable Trusts)

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(Source: The Pew Charitable Trusts) What if lowering student debt was as easy as sending students a letter? Indiana University officials say borrowing by undergraduates at the school has dropped 18 percent since 2012. That's when the university began sending students annual letters that estimate their total loan debt and future monthly payments, as part of a push to boost their financial literacy. Inspired by the results at IU, Indiana last year began requiring all colleges that accept state aid to send letters. Nebraska followed with a similar law this spring. Republican Rep. Casey Cox, the author of the Indiana legislation, says he gets phone calls from officials in other states interested...

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