WEST LAFAYETTE, Ind. (AP): Purdue University is enrolling the first round of students in a program that aims to combat student debt for those promising to pay a share of their future earnings for a certain number of years after graduation.
Students who participate in the program, called “Back-a-Boiler,” enter into income-share agreements rather than taking out a traditional college loan.
The Indianapolis Star reports the university sets the repayment amount based on the anticipated earnings from a student’s area of study. The student’s monthly payments under the program would go down if they’re unsuccessful or don’t earn what was anticipated.
Purdue President Mitch Daniels and other university officials believe the program could one day become a national alternative to student loan debt.
More than 120 students have already enrolled in the program.