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Some private liberal arts colleges are starting a pilot program which offering graduates help with repaying their student loans. These options are offer to graduates in order to boost enrollments in tough economics times. The president of Alma (Mich.) college, Jeff Abernathy testing out the program with about 10 students and at least seven other schools mostly Christian’s colleges. The loan program gives student a safety net if job obtain payless than $20,000 a year the loan repayment plan will cover that year’s payments. Also under the Huntington plan participating students pay nothing for the benefits if a student or parent when borrowing earned less than $40,000 a year this plan will help cover up to $90,000. Matthew Osborne, a vice president at Michigan Spring Arbor University says “gratitude allows for a better relationship” he quotes “And better relations allow for opportunity for better alumni donations down the road.”

Authors: Mary Beth Marklein; USA TODAY 06/13/2011 Colleges offer grads help repaying loans
Abstracts in Social Gerontology
Date: 11/29/2011

Failing to make payments on a federal student loan for a sufficient amount of months will consider the loan to be in default. Defaults on student loans rose to 6.7% in the fiscal year 2007 from 5.2% a year earlier, the highest default rate since 1998. Default loans can be turned over to collection agency, and the federal government can garnish your wages without going to court, says Margaret Reiter, an attorney and co-author of Solve Your Money Troubles. Fortunately, there are steps you can take to avoid default, even if you can’t afford your payments like “Deferment” which is available for borrowers who are still in school, unemployed these payments are typically deferred for up to three years. Another option is “Forbearance” which the lender will allow you to

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