Purdue University considering alternative financial aid option

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By: Associated Press

(Source: https://goo.gl/gQxaGW License: https://goo.gl/sZ7V7x)

WEST LAFAYETTE, Ind. (AP) — Purdue University’s research foundation is seeking a partner to establish and manage an alternative way for students to receive financial aid.

University President Mitch Daniels says income share agreements are a no-debt, low-risk option that can keep the cost of attending Purdue within the reach of all qualified students. Daniels told the (Lafayette) Journal & Courier that the agreements might be a useful financial aid option.

Under the plan, a student draws from an investment pool to get money to pay for tuition and agrees to repay with a portion of the student’s future income over a fixed period of time. Rather than accrue interest, payments adjust with the graduate’s income.

Daniels is confident the school will hear from groups interested in partnering with the foundation.