Schroeder was born in Valparaiso, Indiana; she has a younger brother, Hunter. At the age of three, she began appearing in print advertisements in Chicago and subsequently worked in both television commercials (including one for Shake 'N' Bake) and acting roles.

Schroeder starred as "Serena Baldwin" on the soap opera Port Charles from 1997 to 2001. She guest-starred as "Melina Bianco", Jake Thomas's friend and one of his sidekicks in The Lizzie McGuire Show and The Lizzie McGuire Movie. Schroeder's appearances on the popular television show and its film version have made her a celebrity among teenage audiences.

Schroeder appeared in the well-reviewed 2004 independent film, Mean Creek. Consequently, she was cast as "Sarah Stanfield", the daughter of Harrison Ford and Virginia Madsen's characters in the film Firewall, which opened in February 2006.