The student loan problem

In 2012, 71% of college seniors graduated with student loans. Their average amount of student loans? Just under $30,000. This is insane. Thankfully, I’m not alone in thinking so. This week on The Pete the Planner Radio Show I was joined by Phil Schuman Director of Financial Literacy for Indiana University. He and I have been working together for some time to make the podcast ‘How Not to Move Back in With Your Parents’, along with my former intern, and current IU student, Alex. We have some good times and it looks like at least some of our work is paying off.

This year IU saw a 12% reduction in the amount of student loans taken out compared to last year. That’s $34 million of avoided debt! Amazing! This is all due to the work of the Financial Literacy department. Their blog, the podcast, as well as on campus lectures, and one-on-one sessions, provide students with valuable financial information. They’ve also implemented a 60 minute online money course which is required viewing for all incoming freshman. It is because of these initiatives and the support of the administration that IU students will be graduating with less student loan debt.

But will it be enough? What else has to change? Phil and I are nerds for money talk so we got really into discussing our ideas for the future on this segment from The Pete the Planner Radio Show.

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