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Taming college debt: Purdue’s savvy tuition plan(s)

July 5th, 2016

According to the White House, nearly 70% of bachelor degree graduates take on college loan debt. This $1.2 trillion debt is ruining many recent graduates’ credit and preventing them from beginning the life they have been working towards. While many colleges are raising their tuition rates each and every year, Purdue University has taken an alternative approach.

Along with a tuition freeze that Purdue has adopted since 2012, they are now introducing a new concept to further help students pay back their debts. This program, called “Back a Boiler,” is an income-share agreement provided by the Purdue Research Foundation. Instead of borrowing from lenders with interest rates, students will agree to pay back a percentage of their income for nine years or less after graduation. This percentage will be based on the student’s income from their post-college job. The Chicago Tribune gives you a deeper understanding of what this program is about in the article posted below.

Article published May 11, 2016

This fall, Purdue University undergrads will welcome two things: their parents waving goodbye and their tuition bills frozen for the fourth straight year — with a fifth tuition freeze coming for undergrads in 2017-18. Purdue under efficiency-wise President Mitch Daniels is showing colleges across the nation how to control costs, restrain tuition increases and still provide a quality education. (And a Big Ten-derhearted shoutout here to the University of Illinois, which has frozen tuition two years in a row for new in-state undergraduates.)

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