Western Governors University: Responsible Borrowing Initiative

The big picture

WGU’s Responsible Borrowing Initiative (RBI) has saved students hundreds of millions in unnecessary debt through a simple but revolutionary approach – informing students about their borrowing and suggesting lower amounts.

Why it matters

With student debt reaching crisis levels nationally, WGU’s program demonstrates how basic information sharing can dramatically reduce student borrowing without any regulatory changes.

The impact

The award-winning program has influenced:

• Tennessee’s adoption of RBI concepts across public higher education
• Department of Education’s development of an annual student loan acknowledgment system
• Multiple states implementing annual student loan notices

What’s next

The College Cost Reduction Act, currently moving through Congress, could adopt similar affordability and accountability measures nationwide.

The bottom line

Simple process changes around debt awareness and responsible borrowing can have massive impacts on student financial outcomes.