What's in a Debt Letter? A Content and Linguistic Analysis of Student Loan Debt Letters

Since 2012, many Title IV institutions of higher education have sent their students debt letters to inform them of their outstanding loan amounts, estimated or real monthly payments, and other loan-related information. However, no extant research has analyzed whether these letters are written at an appropriate level for college students, nor has research articulated what complex jargon is used in these letters (e.g., "subsidized," "consolidated") and what content is contained in these letters (e.g., interest rates, loan types). Subsequently, this study analyzes a sample of 24 letters gathered from institutions of higher education across the country to fill these research gaps. Results suggest most debt letters are not comprehensible by the average first-or second-year college student, jargon differs between sectors (e.g., public, private), and debt letters share many common elements, such as aggregate loan totals and interest rates, but many do not include contact information or any multimedia, even though letters were written to be delivered digitally. Implications for research, practice, and financial aid communication are addressed.