In 2012-13, students at this campus had
"I'm so excited in the difference," she said.
The drop comes from a
With federally subsidized student loans, the federal government pays interest on the loans while the student is still in school. With unsubsidized loans, the student is responsible for accrued interest from the start, said
Currently, the law says students must be informed of all loans for which they are eligible, subsidized and unsubsidized. The initiative changes that.
Instead of students being offered subsidized and unsubsidized loans at the same time, students have to fill out a separate loan request form for unsubsidized loans, McCafferty said. Plus, the amount students could borrow in unsubsidized loans each year fell from
"It's those coupled that made the dramatic impact," McCafferty said.
She said oftentimes students see how much they can take in loans and take it all, not thinking about their debt or the amount they really need.
"I have students come in that don't know how much they've borrowed," McCafferty said. But with this initiative, she said, Ivy Tech wants students to understand how much loans can add up to be.
By talking with students about payment options and loan history as well as requiring the request form for the unsubsidized loans, they can choose just what they need, McCafferty said.
Ivy Tech submitted the idea as an experimental initiative to the DOE and is the only school in
He said the idea is popular with community colleges such as Ivy Tech.
Many community college students are often already out in the workplace and think they need loans to go to school, Burton said.
But Ivy Tech, with a relatively low tuition, allows many student to actually cover tuition and book costs with grants and scholarships, and often end up using the remainder of their loans for living expenses and travel, he said.
His advice, Burton said, would be for students to only use federally subsidized loans if possible, so they have less debt.
"We want students to think, 'Hey, I really can do this without going that far into debt,'" he said.
He said the initiative also allows students to save loan money if they decide to continue for their bachelor's degree.
And that money saved makes a difference as students start their careers and start their loan payments, McCafferty said.
"Most important is their future lifestyle and their ability to do well in the future," she said.
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