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This is Chris Redgrave for Zions Bank Speaking on Business.
In the United States it's pretty obvious education is important to remain competitive in the business world. And Dr. Mendenhall and his staff at Western Governors University are driven by the mission of supporting working adults who want to achieve this goal. However, a trend resulting from this need nationally is $1.2 trillion of student loan debt, which has motivated Western Governor's University to come up with the Responsible Borrowing Initiative.
This is the way the Responsible Borrowing Initiative works. Students are provided with a recommended borrowing amount as well as information that helps them understand the true costs of the money they're borrowing. They are presented with the amount they qualify for as well as a recommended amount of what they should borrow, less costs of grants or scholarships the student is receiving.
While some students may choose to borrow their maximum eligible amount, about 75 percent choose to borrow only the recommended amount. In just over 12 months, average borrowing per student has decreased by $2,500, a 29 percent reduction.
Western Governor's University is a leader in competency-based education, an educational model focused on what students know and can do rather than how long they're in class. The university attracts students of all ages, targeting working adults who need the flexibility to complete their education online. Many students borrow money to pay for their education and cover other expenses while they're in school. Their average debt at graduation for students is already substantially lower than the national average; however, they still mirror the national trend with an increase in debt.
Motivated to reverse this trend, they launched the Responsible Borrowing Initiative, in the past year which has reduced total borrowing for Western Governor's University students by $45 million, even as the university's enrollment grew by 18 percent. Overall this reduction in student borrowing represents approximately $125 million. It stands to reason that WGU figured out the key and success to this initiative is educating students on the long-term impact of debt.
For Zions Bank, I'm Chris Redgrave, speaking on business.
Western Governors University 1-866-225-5948 www.wgu.edu
