Published February 11, 2013
A Christian University in Michigan is offering to help their graduates pay off their student loans if the students struggle to do so with a post-graduate income.
Spring Arbor University announced last week in a press release it will automatically enroll incoming freshman in a loan repayment assistance program starting this fall.
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.
The school says in the release it wants students to be relieved of the concerns associated with paying for a private, Christian education in an uncertain job market.
Spring Arbor President Charles Webb tells the Associated Press the school wants to provide "students and their families with peace of mind."
The Associated Press contributed to this report.