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.