The average cost of a private college in America is just over $30,000 per year. State schools charge around $9,000 for residents. and as much as $22,000 for non-residents.
With Republicans blocking any hope of affordable student loan interest rates, more and more students find themselves buried in debt simply for trying to further their education.
One progressive college in Michigan has taken steps to change the trend of higher education in America being more of a burden than it’s worth.
Adrian College has come up with an ingenious plan to help lower and middle-income families by introducing a program that is sure to turn heads in education circles. Adrian is guaranteeing that students who make less than $37,000 a year after graduation will pay back little to none of their debt, with the college assuming the rest.
College President Jeffrey Docking said in an interview that the college took out an insurance plan on all of the school’s incoming Freshmen that will pay all or part of the student loans for any who make less than the $37K benchmark after graduation.
The plan requires that students work at least 30 hours per week after they leave school. Graduates earning less than $20K per year will have all of their loans paid while those making between $20-$37K will have their loans paid on a sliding scale.
Docking said the college felt like it needed a big solution to a big problem:
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.’
At a cost of $550,000, the school needed to bring in thirty new students for the program to work. Docking said they’ve brought in fifty new students, a fantastic return on the investment.
Colleges and their students were in desperate need of a win. Adrian’s innovative idea and implementation is hopefully the start of a trend that will make furthering education a worthwhile venture for hopeful American student in the future.