College to Pay Student Loans If Alumni Don’t Make More Than $37K
One Michigan college is making an unusual promise: It will pay student loans for graduates who make $37,000 per year or less.
Adrian College President Jeffrey Docking was on “Fox and Friends” this morning to explain. He said that the college took out an insurance policy on every incoming freshman and will pay all or part of student loans for graduates making less than $37,000.
Docking explained that graduates must get a job working at least 30 hours per week to qualify. The college will pay full monthly payments for alumni making less than $20,000 per year. Loans will be paid on a sliding scale for graduates making $20,000-37,000 per year. There is no time limit for the payment plan.
Docking said Adrian College felt like it needed a big solution to a big problem, citing student loans as a top concern for families.
“You never know when the economy is going to go south. In ‘08 and ’09, so many of those kids made the right decision, and there wasn't a job waiting for them. And we're saying, ‘We're going to take care of you, and we understand you don't want you to leave with a mortgage, and if you do, you're going to be OK if you can't find a job,’” he said.
This has cost the college $550,000. Adrian College needed to bring in 30 students to pay for the plan, but it has brought in about 50 students, Docking said, calling the return on investment “fantastic.”