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Schools Pay Student Loans for Underemployed Grads

Adrian College offers a perk for prospective students concerned about low-paying jobs and high loans after graduation: starting next year, the Michigan school will reimburse graduates for their student loans, if they make less than $20,000 a year.

Adrian College offers a perk for prospective students concerned about low-paying jobs and high loans after graduation: starting next year, the Michigan school will reimburse graduates for their student loans, if they make less than $20,000 a year.

student loan debt 

(Photo Credit: wlp32485/Flickr)

Students who make between $20,000 and $37,000 will also receive assistance on a sliding scale, the school tells The Wall Street Journal.

Do You Know What You're Worth?

Adrian President Jeffrey Docking says 90 percent of employed graduates have jobs in their field, and about a third go on to graduate school. Still, WSJ reports that the average student has $17,000 in student loan debt.

“We listened to parents,” says Docking. “Almost to a person, people expressed concern about the amount of debt [students] may carry coming out.”

Adrian is one of a handful of U.S. colleges who offer programs like this, helping students with loan repayment when they make under a certain amount, post-graduation. (The cap is usually somewhere in the mid-30,000 dollar range.)

Last year, more than half of America’s college graduates were unemployed, or working at low-paying jobs. In a time when students must factor post-graduate salaries (and thus, their ability to repay those ever-growing student loans) into their college choice, it will be interesting to see if more colleges adopt similar programs in order to woo applicants.

Tell Us What You Think

Would a program like this influence your decision to attend a school? We want to hear from you! Leave a comment or join the discussion on Twitter.

Jen Hubley Luckwaldt
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