BLOOMINGTON, Ind. — Indiana University President Michael McRobbie has decided to slow hiring for administrative positions at the school and take other cost-saving measures because of the national economic downturn.

IU was not hit as hard as some other schools by the financial meltdown, but needs to take the steps because the school may see lower interest income, less philanthropic giving and smaller student loans, McRobbie said Tuesday during his State of the University speech.

University officials last February converted all of IU’s variable-rate debt to fixed-rate debt at interest rates of about 4 percent, he said. In addition, he said, IU had partly diversified out of a short-term investment fund run by Wachovia.

“Thus, IU escaped the havoc and expense wrought by the unrest of the last few weeks and can let the markets hopefully return to some semblance of normalcy before it is necessary to seek further funding,” McRobbie said. “Indiana University’s liquidity and credit rating remain strong, and I stand ready to take all necessary actions to ensure this continues to be true in the coming weeks.”

He has requested a slowdown in the hiring of nonfaculty positions and has asked for a list of cost saving measures within a week that could be put into place quickly. He also said a task force will find ways to help students and their families find affordable student loans.

Bloomington faculty council President Herbert Terry said McRobbie’s actions showed prudence.

“I’m not surprised we’re better prepared than some of our peer institutions,” he said.