… A new program guaranteeing every graduate would make more than $37,000, or get some or all student loans reimbursed.
It costs the college $1,165 per student to pay for this guarantee.
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.
There’s no time limit for the payment plan but the college caps total loan payments at $70,000 per student. Adrian’s annual cost of tuition, room and board is about $40,000 before any forms of financial aid.
Let’s wait to see how this works out.
I suspect very few graduates will be able to prove their inability to get a job paying at least $20,000 annually. Beyond that, the details could get murky. Some graduates will benefit by gaining greater flexibility in the types of jobs they accept, but the fact is that many college graduates are finding it difficult to find jobs paying at least $37,000. I wonder if one of the stipulations is graduation within four years. That could rule out many prospective beneficiaries.
This guarantee does offer Adrian College good publicity now, but I will be interested to hear about the results of this scheme in four years.