College loans are undeniably a heavy burden to many students upon graduation. With rising tuition and, therefore, rising loans, graduates are often left with an overwhelming financial strain. This problem is intensified as many of Corban’s graduates enter the mission field, often accompanied by a lower average income.
Beginning fall of 2014, Corban will offer the Corban Promise, a loan repayment assistance program, to all incoming freshmen. According to a press release from Corban Univesity, “the unique program, provided at no cost to families, offers a safety net that helps ease the burden of student loans, while empowering graduates to pursue their passions and higher ambitions.”
Corban is the first college on the West Coast to offer this program, however, its credibility has been shown for the past 25 years, as Yale Law School and other Ivy League institutions have used similar programs.
In order to gain the benefits of this assistance upon graduation, incoming freshmen for 2014 or later must graduate with a bachelor’s degree from Corban University, average a minimum of 30 hours a week of employment, work in the United States, and not be self-employed or working for family. The Corban Promise covers a variety of loans including all federal student loans, private alternative student loan and parent PLUS loans.
Many students have asked where this financial assistance will come from. Corban will be working through a third party, called Loan Repayment Assistance Program (LRAP). “The insurance backing is provided by American Safety Indemnity (ASI). ASI is traded on the New York Stock Exchange…and is rated A (excellent) by AM Best & Company,” said Robert H. Myers, Jr. of Morris, Manning and Martin, LLP, and one of the insurance counsels for LRAP since its founding in 2008. “ASI is a specialty insurance company that provides customized insurance products to companies in niche industries.”
According to an article titled “Corban Promise” on Corban’s undergraduate website, graduates who receive an income below $37,000 will qualify for loan assistance. The loan assistance will also increase proportionally as the income decreases. Graduates making less than $20,000 will be eligible for full loan reimbursement. The article states, “Assistance continues until the loans are repaid or income increases above the upper income threshold.”
“In times when many college graduates are having to choose between following their dreams and settling for a paycheck to pay the bills,” said Matt Lucas, D.A., provost, “we want our students and families to know that we are committed to their success, from the time they set foot on campus, until the day they land their dream job. Given our mission, to help educate the leaders of tomorrow, providing The Corban Promise is not only our way of securing those successful futures, it is also the right thing to do.”