One College’s ‘Loan Insurance’ Program

Michigan’s Adrian College has a new loan repayment program: the school will pay your student loans if you’re making less than $37,000.

According to an article in the Detroit Free Press:

The Adrian program works like this: Get a job after graduation that pays less than $20,000 a year, and the college will make the complete monthly student loan payment until the individual makes more than $37,000 a year. Get a job that pays between $20,000 and $37,000, and the college will make payments on a sliding scale. If students go directly on to graduate school, the program kicks in once they leave grad school.

There is no time limit for the payment plan to run out, but Adrian caps total loan payments at $70,000 per student.

At Adrian, a small private college, average student debt is $17,000. And about 85 percent of students graduate in the red.

But plan probably won’t be necessary for most students. It’s really like a student loan insurance program, to help students if they have trouble finding a job. The president of Adrian, Jeffrey Docking, told the Free Press that he didn’t really expect too many students to actually make use of the program. Indeed, it may be more of a marketing gimmick designed to make the college more attractive to students (and their parents). While almost half of students receive financial aid, the list price of Adrian is almost $40,000 a year. People “are scared away by the sticker price,” Docking explained.

Washington Monthly - Donate today and your gift will be doubled!

Support Nonprofit Journalism

If you enjoyed this article, consider making a donation to help us produce more like it. The Washington Monthly was founded in 1969 to tell the stories of how government really works—and how to make it work better. Fifty years later, the need for incisive analysis and new, progressive policy ideas is clearer than ever. As a nonprofit, we rely on support from readers like you.

Yes, I’ll make a donation

Daniel Luzer

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer