A small college in Michigan is making headlines by guaranteeing to pay all or part of its graduates student loan payments if they make less than $37,000 per year.

Adrian College is among the first colleges in the nation to take out insurance policies on all incoming freshmen and transfer students who have student loans and at least two years of school remaining.

Adrian paid roughly $575,000 this year, or $1,165 per student, to take out policies on 495 students. For those who graduate and get a job that pays less than $20,000 a year, the college will make full monthly student loan payments until they make $37,000 a year. If the graduate has a job that pays between $20,000 and $37,000, the college will make payments on a sliding scale.

There’s no time limit for the payment plan, but the college limits the total loan payments to $70,000 per student. Adrian’s annual cost of tuition, room and board is about $40,000.

Adrian has already seen a benefit to this program - the school estimated that they would need 12 new students this year to pay for the policies it took out, but enrollment is up by 50 students.

This program was made possible by the Loan Repayment Assistance Program Association, a Bloomington, Indiana-based organization that works with U.S. colleges and universities.

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