One of the biggest problems facing many young adults is their crippling student loan obligations, which often consume such a large portion of a relatively small paycheck that paying for life's other necessities becomes a huge challenge.
But Purdue University has just announced a new idea that could provide the perfect solution for future graduates -- because its payback plan is nothing if not unique.
It works like this: Under the plan, students will receive funding -- just like a scholarship -- and complete the agreement by paying back an agreed-upon percentage of their salary after graduation.
A high salary will mean higher payments. But wouldn't it be worth it? And a low salary will only require low payments that won't bust the budget.
Students will have six months after graduation before any payments are due. And no matter how much is paid back, the obligation completely ends after no more than nine years -- less in some cases.
Given current interest rates, most students would wind up paying considerably less under this plan than by taking out the usual student loan. And no student would still be burdened with college obligations long after reaching middle age.
I think this is a great idea -- the kind of thinking needed to face the challenge of getting a higher education in the 21st century. And I hope our local universities will be paying close attention to its progress.
I'm Bill Lamb and that's my Point of View.
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