Saturday, December 27, 2014

College guarantees you will find a job at 37k or most if not all of your money back

   Parents who have told their children their entire lives that going to college was their 'babies' ticket to the good life only to see them struggle to find a job. While we all understand that their are no guarantees in life other than professor tenure and student loans, one college is offering to pay for a graduates student loans if they are not making at least 37K as graduates. Yes, you heard that right. There are some restrictions and fine print.

Here's a little of it.   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 will make payments
on a sliding scale. 


Thank God for Insurance. Adrian is a small private college that cherry picks its students. Will any other schools follow?

College sees benefits with loan promise


  By Jeff Karoub Associated Press
 

     ADRIAN, MICH. — When it came time to pick a college, Abby Slusher leaned toward a private school near her southeastern Michigan home for the small campus and class sizes. Her mother pushed Adrian College for another reason: a new program guaranteeing every graduate would make more than $37,000 or get some or all student loans reimbursed.


   Adrian is among the first colleges to take out insurance policies on all incoming freshmen and transfer students who have student loans and at least two years of school remaining.

   “She said, ‘Look at me, I’m still trying to pay my student loans off — this would be great. I don’t want you in this situation,’” said Slusher, 18, who is studying to become a social worker. “And seeing

  her in this situation, I don’t want that.”

   The idea has been around for a few decades at Yale Law School and for specific programs elsewhere, such as seminary and social work degrees. Some small, religious schools started offering guarantees to all new students in recent years, but Adrian President Jeffrey Docking is taking it further by framing the program as a solution to skyrocketing tuition costs and student

  loan defaults. His crusade has gotten the attention of U.S. lawmakers and education officials.

   “Obviously, we feel like this is a big solution to a big problem — maybe the biggest problem right

  now in higher education,” Docking said.

   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 will make 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.

   The school has 1,700 students.

   Docking already sees benefits: The entering freshmen class is up about 50 students to 570.