Spring Arbor University, a liberal arts college, in Michigan is offering its future broke, college grads loan repayment assistance to its incoming freshman. I’m excited to see how this turns out. It could be a new resolution that’s perhaps better than universities suing their students as we mentioned last week.
According to SAU’s press release:
“SAU is the only university in Michigan to offer the Loan Repayment Assistance Program (LRAP), and its fall 2013 incoming freshmen will be automatically enrolled. LRAP guarantees that students and their parents will receive help in repaying educational loans following graduation if their income does not meet pre-established program benchmarks.”
Students who don’t get jobs or ones who have jobs yet can’t afford to make their payments will be automatically eligible for the program. It’s a way for students to enroll without feeling the weight of future financial burden and it would leave the university in better standing since less students will default on their loans.
“After graduation, students must work 30 hours per week, and if their incomes don’t rise past established benchmarks, the program kicks in until students make more or pay off the loan.”
This sounds like a great approach to solving what can be described as a national crisis. At least the university is trying something, even if it doesn’t work we may be a bit closer to a solution. Would a program like this help you?