Kokomo Tribune; Kokomo, Indiana

Breaking News

Opinion

July 17, 2014

EDITORIAL: IU, Purdue have stepped up in student loan crisis

One of the potential drags on the nation’s economy is burgeoning student debt, which now totals more than $1.2 trillion.

Recent graduates, even those in good-paying positions, find themselves struggling to meet loan payments.

Purdue University has responded to this problem by freezing tuition for the past few years, and many colleges and universities across the state have offered discounted summer tuition in order to help students graduate more quickly.

Now Indiana University has taken a consumer-oriented step. All seven IU campuses now tell students before they take out loans for the next year what their monthly payment would be after graduation. The response has been immediate.

According to Education Department data, federal undergraduate Stafford loan disbursements at IU dropped 11 percent, or $31 million, in the nine months that ended March 31, compared with the same period a year earlier.

In a Bloomberg News report, Jim Kennedy, IU associate vice president and director of financial aid, said, “We are having more contact with the student where they can say, ‘I don’t want this,’ or ‘I want less.’ If they know at all times their debt and the repayment, it helps with a lot of planning.”

And at Purdue, undergraduate federal borrowing declined by 12 percent in the past three quarters on its main campus in West Lafayette after the campus added financial-literacy programs.

Studies have shown that many students, some as young at 17 when they first borrow, fail to understand loan terms and find themselves in financial straits when they are expected to begin repaying years later.

A recent Federal Reserve Bank of New York report found that fewer than half of survey respondents with student debt had high “loan literacy.” Federal law requires colleges to provide counseling to borrowers only at the beginning and end of their studies.

Enhancing students’ financial literacy is a welcome development under any circumstance, but when specifically directed at student loans, the impact is immediate and significant.

We applaud IU and Purdue for taking this pro-consumer approach and urge other colleges and universities to take similar steps.

Not only are they likely to reduce student debt, they will produce smarter consumers better equipped to thrive in the economic world after graduation.

— Daily Journal of Johnson County

1
Text Only | Photo Reprints
Opinion
  • State aims at outbreaks More than 200 Western School Corp. students were vaccinated for chickenpox after an outbreak in March 2012.The virus was confirmed to have infected five fifth-graders, the Howard County Health Department reported. It acted quickly to prevent the infe

    July 22, 2014

  • MAUREEN HAYDEN: Expiring term heightens urgency of legislator's mission State Rep. Rebecca Kubacki had plans for her return to the General Assembly next January.The two-term Republican from Kosciusko County wanted to exert “full force” to roll back a law that prevents the children of undocumented immigrants from paying i

    July 22, 2014

  • LETTERS: Trust chemical, seed firms and the FDA? Trust chemical, seed firms and the FDA?Let’s see ... Mr. Don Villwock, Indiana Farm Bureau president, wants the FDA to define what genetically engineered foods are, and then he wants it to be optional or voluntary for food companies to tell consumers

    July 22, 2014

  • TOM LoBIANCO: Indiana Democrats deal with divide on education On the face of it, the battles between Democratic Schools Superintendent Glenda Ritz and supporters and staff of Republican Gov. Mike Pence have been a unifying force for Indiana Democrats. But the scrapping has exposed a deep rift within the party o

    July 22, 2014

  • BRIAN HOWEY: Is Evan Bayh contemplating another gubernatorial run? This could be the saga of “LeBron Bayh.”Like a thunderhead brewing in the distance, you could see this one coming. This was the progression: former state Democratic Chairman Dan Parker announces he will not become a candidate for mayor of Indianapoli

    July 21, 2014

  • LETTERS: Show support where you spend money Show support where you spend moneyReinvest in your community. It is something you hear often, but what does it mean and how do you effectively do it?Thankfully, there are people in our community who can give six-figure donations to projects like the

    July 21, 2014

  • DICK WOLFSIE: Please go away already My wife is planning our summer vacation, which we will take in the fall. We took our spring vacation this summer. We got behind in 1984 and still haven't caught up. I don't have much input into the planning of these trips, but Mary Ellen did assign m

    July 21, 2014

  • WEEKLY WRAP: All of Indy must step forward All of Indy must step forwardIt has been a brutal week, one filled with violence, suffering, mourning and reflection.The brutality began on the night of July 4, when two women were shot and wounded on the Eastside. Police found 30 bullet casings in t

    July 21, 2014

  • Testament to our youth We hear complaints — all the time — from campaigning politicians, TV pundits and lobbyists peddling “family values.” The federal government, they say, has “taken God out of our schools.”God never left. Not here. Kokomo City Hall, the United Way of Ho

    July 20, 2014

  • ED VASICEK: Internet, and future of communication One morning, I was chatting with some retired folks and the subject of paying bills on the Internet came up. One woman said she disposed of her computer years ago and pays her bills by mail. I commented she could get by just fine doing that. The othe

    July 20, 2014

Featured Ads
Only on our website
AP Video
Obama Offers Condolences at Dutch Embassy Cat Fans Lap Up Feline Film Festival Raw: Lawmakers Scuffle in Ukraine's Parliament The Rock Finds His Inner 'Hercules' Michigan Plant's Goal: Flower and Die Raw: MH17 Passenger Remains in Kharkiv, Ukraine Raw: Israel Hits Gaza Targets, Destroys Mosques ShowBiz Minute: Hoffman, Oberst, Box Office WWII Vet Gets Medals, 70 Years Late Raw: Israel Bombs Multiple Targets in Gaza Veteran Creates Job During High Unemployment Raw: Cargo Craft Undocks From Space Station Widow: Jury Sent Big Tobacco a $23B Message New Orleans Plans to Recycle Cigarette Butts UN Security Council Calls for MH 17 Crash Probe Obama Bestows Medal of Honor on NH Veteran Texas Sending National Guard Troops to Border Hopkins to Pay $190M After Pelvic Exams Taped Foxx Cites Washington 'Circus Mirror' NASA Ceremony Honors Moon Walker Neil Armstrong
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries
Poll