WGU Recognized for Reducing Student Debt by 41%

WGU Recognized for Reducing Student Debt by 41%

Online, nonprofit university awarded Exemplary Model Award by American Association of University Administrators (AAUA)

St. Louis —WGU Missouri and its parent university, Western Governors University (WGU), have been recognized for reducing student debt and developing “an excellent solution to a common problem in higher education.” The nonprofit university’s Responsible Borrowing Initiatives, which to date have reduced student borrowing at WGU by $400 million, received the Exemplary Model Award at the American Association of University Administrators’ (AAUA) annual conference held in San Antonio, Texas.

“WGU’s innovation, along with its low tuition, has a positive impact on student finances during and after enrollment and addresses directly a central access problem in American higher education,” said AAUA Awards Chairman Dr. Jerome Neuner. “Careful financial aid advising and new procedures at WGU have led to a 41 percent decrease in average student borrowing and a default rate of just 5 percent, less than half the national average.”

Nationwide, student debt has surpassed $1.3 trillion. WGU is addressing the problem of ballooning debt by educating students about responsible borrowing. In 2013, WGU developed its Responsible Borrowing Initiatives to encourage students to borrow only what they need to complete their degrees, helping students make informed decisions to borrow wisely. Since launching the initiatives, average borrowing per WGU student (of those who take out loans) has decreased by $3,230 per year, a 41% reduction. Debt at graduation for undergraduates has also decreased each year since the program’s inception. In 2016, the average (for those who took out loans) was $16,862, which is less than half the national average.

"While a college degree certainly adds career value, it doesn’t necessarily make sense for students to borrow high amounts to finance their education,” said Dr. Angie Besendorfer, Chancellor of WGU Missouri. “Since the Responsible Borrowing Initiative began, average borrowing per WGU Missouri student – out of those who take out loans – has decreased by $2,500 per year, a reduction of 29 percent."

WGU’s tuition, which has not increased since 2008, is about $3,000 per six-month term for most programs, regardless of the number of courses completed. WGU's innovative, competency-based learning model allows students to advance as soon as they demonstrate mastery of course materials, making it possible for many students to accelerate their progress toward a degree, saving both time and money. The average time to complete a bachelor's degree at WGU is about 2 ½ years, making the average cost for a bachelor's degree about $15,000. For more information, visit missouri.wgu.edu.

About WGU Missouri

WGU Missouri is a competency-based, online university created to expand access to higher education for Missouri residents. The university offers more than 50 undergraduate and graduate degree programs in the fields of business, K-12 teacher education, information technology, and health professions, including nursing. WGU Missouri faculty members provide one-on-one guidance, support, and instruction.

Established through a partnership with nationally recognized Western Governors University, WGU Missouri is open to all qualified Missouri residents. The university is nonprofit and self-sustaining on flat-rate tuition of about $6,000 per year for most programs.

Degrees are granted under the accreditation of Western Governors University, which is accredited through the Northwest Commission on Colleges and Universities (NWCCU). Teachers College programs are accredited by the National Council for Accreditation of Teacher Education (NCATE), and nursing programs are accredited by the Commission on Collegiate Nursing Education (CCNE*).

*Western Governors University offers nursing programs that are accredited by the Commission on Collegiate Nursing Education (One Dupont Circle, NW, Suite 5380, Washington DC 20036, 202-877-6791).