Mar 30, 2017 08:06 AM EDT
Student Debt Solution: Colleges Adapt LRAP Program to Help Students Pay Debt
If there is anything that keeps many millennials from being able to invest, it is the burden of their student debt. And that is the reason why there are colleges that take steps to help students carry some load of the loans they took to be able to pay for their college expenses.
According to The Morning Call, average student debt for 2016 graduates is a record $37,172, which is 6 percent higher than the previous year. And now, about 100 schools in the United States start to offer a sort of debt-sharing program which is tied to the college graduates' earning levels.
What these schools do is that they buy loan-repayment assistance packages from LRAP association, which is an Indiana-based firm, Fortune reported.
LRAP President Peter Samuelson said that it works similar to an insurance policy. The program will also cost the college about $1,300 per student. To make it simple, what LRAP will do is to issue checks to the graduates who are earning below a certain income level so that it becomes easier for them to repay their student loans.
According to statistics, the colleges and universities who adapt to this kind of program that is similar to LRAP are able to see traction in their admissions number. It is understandable that more college students will be encouraged to enroll to these institutions which offer similar programs as everybody wants and needs help and aid when it comes to shouldering the burden they carry on student loan after graduation.
An example is the Newberry College in South Carolina which noticed a 12 percent increase in their enrollment rate after getting an LRAP policy for their students. Newberry President Maurice Scherrens said that they would have not been able to do it had they not seen a jump in the enrollment.
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