<p>"The program guarantees that students and their parents get help in repaying loans if a graduate's income fails to meet what the school calls an "upper-income threshold" of $37,000 annually.
Graduates who make less than $20,000 a year will be reimbursed for the entire amount of their student loans. The graduate's benefit will be decreased proportionately as they approach the $37,000 threshold. The assistance continues until the graduate's income rises past $37,000 or the loan is paid off.
The school says it will cover federal students loans, private alternative loans and parent PLUS loans.
Enrollment in the program is free, but graduates must work at least 30 hours per week after graduating to be eligible."</p>
<p>A new way to attract students? How long can their money hold out? How many students would need it?</p>
<p>I believe it’s the schools way of making sure that people don’t just sit on their parents’ couches for a year while watching their student loan debt disappear. It makes perfect sense to me as to why there’s a mandatory work amount, though I suspect that Spring Arbor will have very very rigid stipulations as to what constitutes working 30 hours a week.</p>
<p>It makes sense to me too - no sense staying unemployed waiting for that 100K perfect job to show up. Work somewhere (even flipping burgers) and we’ll help. No work? Then you’re on your own.</p>
<p>^^^ Relocate, get a better personality, sponge off mom and dad, or pay your own loans as you’d have to if you went anywhere else I guess.</p>
<p>I’d like to see this policy catch on more personally, but I still wonder how they can pay for it. They must have done some study as to how much it would cost I would think - or how would they get their $37,000 cap? Perhaps it doesn’t cost as much as I might be thinking?</p>
<p>FWIW, I know absolutely nothing about that college - never even heard the name before (but that doesn’t mean it’s “bad,” of course - just that I’m not familiar with it). I do like the policy the more I think about it though.</p>
<p>Actually, with time on my hands, I just looked up their stats. They seem pretty typical for a small regional U. Mid level ACT is 20 - 26. 70% acceptance rate. That would compare with some schools around here. They could be offering a decent “gimmick” for that demographic IMO. As I said before, I hope it catches on to other places. It would be a nice trend to see.</p>