Adrian College in Michigan is among a handful that are luring students by promising to repay their loans if they end up in low-paying jobs after graduation.
The Detroit News reports that Adrian is “guaranteeing every graduate would make more than $37,000, or get some or all student loans reimbursed”:
Adrian is among the first colleges to take out insurance policies on every incoming freshman and transfer student who has student loans and at least two years of school remaining. …
Adrian paid roughly $575,000 this year, or $1,165 per student, to take out policies on 495 students. For those who graduate and get a job that pays less than $20,000 a year, the college will make full monthly student loan payments until they make $37,000 a year. With a job that pays $20,000 to $37,000, the college makes payments on a sliding scale.
It’s worked for Adrian – freshmen enrollment is up about 50 students this year – though a neighboring small Christian school, Spring Arbor University, is actually cutting back on its guarantee program, a spokesman says:
“Is there a way to better tailor it to students who really need it and have the desire to have that option? For us, it makes more fiscal sense not to automatically assign it to each and every student.”
h/t Phi Beta Cons
Like The College Fix on Facebook / Follow us on Twitter
IMAGE: trustypics/Flickr
Please join the conversation about our stories on Facebook, Twitter, Instagram, Reddit, MeWe, Rumble, Gab, Minds and Gettr.