Purdue among colleges asking for share of future salary instead of loans

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("PURDUE UNIVERSITY" by taki Lau, CC BY-SA 2.0)

MONTPELIER, Vt. (AP) — More colleges are beginning to offer income share agreements, in which colleges receive a percentage of the student’s future salary, in place of some student loans.

Vermont’s Norwich University has become the latest school to offer this type of agreement. The school says the program will “reduce financial barriers to degree completion.”

The school will contract with Virginia-based Vemo Education, which first began offering the agreements in 2016 and now has nearly 30 public and private colleges and universities as clients.

The first and largest school to offer income share agreements was Purdue University in Indiana. Recent Purdue graduate Andrew Hoyler says the agreement helps him avoid large loan payments while he starts out his career in lower-paying positions.

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