The Federal Open Market Committee is expected to announce a .25-percent increase to the federal interest rate on Wednesday afternoon.
Mitch Daniels was questioned about his plan to get investors to pay for Purdue students to go to college in exchange for a portion of students’ future earnings.
Schools on the list may face delays or a stop to student loan payments from the federal government.
Student borrowing is down 11 percent across Indiana University’s seven campuses amounting to more than $30 million.
Indiana Newsdesk host Joe Hren speaks with IU education professor Don Hossler about what impact President Obama's plan to reduce student debt has on Hoosiers.
The university cites increased financial literacy for the shift.
Interest rates on government-subsidized Stafford loans doubled last week to 6.8 percent after the Senate rejected two proposals for keeping the rate down.
The interest rate on new student loans are doubling Monday to 6.8 percent.
If Congress fails to act by July 1, student loan interest rates will double, but some parents and students say that is not affecting their choice of college.
People eligible for the program can cap their monthly payments to 10 percent of their discretionary income.