While they’ve been given many names—Student Loan Notification Letter, Student Loan Disclosure, Loan Debt Disclosure, Education Loan Disclosure, Loan Summary—the term we’ve embraced is Student Debt Letter; easy to say and easy to comprehend. Regardless of the name it’s an important correspondence containing personalized student loan, financial aid, and college cost information sent by schools to their students. Student debt letter information not only helps schools retain the students they've worked so hard to enroll, it helps empower students to achieve better outcomes including strategic degree choices, maximizing credits, and reducing borrowing. Many states have mandated use of an annual student debt letter.
New to debt letters? Download our Student Debt Letter Best Practices.
It depends. Currently there are eleven states with debt letter legislation: California, Florida, Illinois, Indiana Maryland, Nebraska, Oregon, Texas, Virginia, Washington, and Wisconsin. Each state has different parameters as to when they became or will become effective, which schools must comply, and how.
To get up to speed, download Who Must Comply.
If you're in a state with debt letter legislation, our resources can not only bring you up to speed on your state's legislative requirements but also help you understand how to comply. Our free resources include:
There are numerous things to consider when planning for and implementing a debt letter. For example, is it better to build your own debt letter or is it more cost effective to purchase one?
If you're evaluating debt letter vendors, consider a few things:
For more tips, download Considerations for Planning and Implementing a Debt Letter.
Figures indicate that today's college graduates leave with more than $30,000 in debt. And, Americans owe more than $1.4 trillion in student loans, surpassing credit card debt and auto loan debt. Yet, research shows that students who receive debt letters graduate early and with less debt.
Debt letters have been proven to empower college students to take a strategic look at degree choice, maximize paid credits, reduce borrowing, and engage school support staff for tactical insight and guidance.
Schools have different goals when communicating financial aid or indebtedness data to their students, so you'll want a solution that can accommodate your needs. A good debt letter solution will include an expansive list of financial aid categories to not only meet your current needs but be able to adjust to changes in your state's legislation or your school's debt letter strategy.
Download a debt letter example.