Program to help low-earning grads pay student loans

? Graduates of Central Christian College’s most popular majors in fields such as education and ministry aren’t known for commanding high starting salaries.

But freshmen at the McPherson college who start in 2003 should be able to worry a little less about paying back student loans, no matter what career they choose.

In keeping with the college’s tradition of encouraging graduates to consider public service careers, a new program being offered next fall to first-time freshmen will help repay student loans if a graduate’s income is $25,000 or less.

David Ferrell, dean of admissions, said with the national average for student loan debt exceeding $16,000 for graduates with a bachelor’s degree, the program offers reassurance to students unsure about the strength of the economy or the job market.

“We’re wanting to show we’re supporting alumni in fields of study that might not draw a good income,” Ferrell said. “It can be any occupation. There’s no one field being singled out.”

Central, affiliated with the Free Methodist Church, is one of five Free Methodist colleges around the nation. Fall enrollment this semester is 337.

Next fall’s tuition and fees will total $12,500; together with $4,100 for room and board, the total is $16,600, Ferrell said.

The loan repay program was originated with the suggestion and help of a member of the college’s board of trustees, Peter Samuelson, St. Louis.

The program will reimburse loan payments for a given year to students whose income for that year is $11,000 or below. Those who earn more than $11,000 will receive proportionally less, up to a salary of $25,000.

For a salary of $18,000, for instance, a student would be reimbursed for half their loan payments that year, Samuelson said.

Central’s new loan program is being financed through donations from alumni.

“We’re raising money from alumni who thought it was a good thing to do for fellow alumni,” Samuelson said. “They thought it was important to pursue ministerial careers and public service careers.”

Ferrell estimated next fall’s freshman class could number about 120 students; he hopes 25 to 50 students take advantage of the loan pay program.

“It’s just hard to say. I hope this bumps our freshman class by 10 to 15 students,” he said.

At Bethany College in Lindsborg, President Paul Formo recalled his undergraduate education in the 1960s, when he was part of the National Defense Loan program. Under that program, graduates who went into public school teaching could get 10 percent to 15 percent of their loans repaid.

Formo said Bethany tries to focus its financial aid on grants, to reduce students’ debt.