Purdue University launched its program set to combat student debt, and it's expecting to enroll the first batch of students along with the program called "Back-a-Boiler."
The program aims to counter student debt by reducing the fees for the initial enrollment, in exchange to an agreement between the school and the student. Students enrolled in the program agrees to participate in an income-share system, CBS Indianapolis reported.
"Back-a-Boiler" enlists the students to promise to pay a share from their future earnings for a set of years, which comes after the student's graduation. It is reported that the university based the amount of which to be repaid by the student to the anticipated earnings from the student's chosen field.
The student's monthly dues to be paid back to the university would decrease in amount if the student's earnings are below the anticipated earnings, or if the student was unsuccessful in the career chosen altogether.
Mitch Daniels, university president, is adamant that the program could be beneficial for the university and the student, as well. Daniels believes that "Back-a-Boiler" could potentially be a national alternative to counter student loan debt.
Purdue University is already set to carry out the program, which makes the university as the frontrunner for the whole country to attempt the relatively bold concept, according to The Indianapolis Star.
Students enrolled in the program would enter an agreement with the university, that binds the student to pay for their degree using parts of their future earnings for a set number of years after graduation.
The monthly fee would be based on the graduate's performance in the chosen field of study, as well. The dynamic rate could easily accommodate the student's performance, reducing the burden of a large debt altogether.
There are already 120 students enrolled in the programs, which could potentially result in a $2.2 million aid for the 2016-17 academic year. It is estimated that the average student loan debt in Indiana is about $29,000 per pupil.
