NASFAA Mention: Pitt Program Helps Lower New Graduates' Debt So They Can Do the Same for Others

"As Mackenzie Graham prepares to enter the final semester of college, she knows what lies ahead: Finding a job that will put her political science degree to work for her, and paying back the money she borrowed to pay for that degree," PennLive.com reports. "... But this past fall, she got word that her school has selected her for a new program it is launching called Panthers Forward that will help to alleviate some of her debt load."

"It’s a novel pay-it-forward approach that’s caught the attention of national financial aid experts.

Here’s how it works:

Shortly after the chosen students graduate, the program will apply $5,000 to their federal loan balance. Students owing less than $5,000 will have their entire loan balance will be paid off. The money to lower the loan balances comes from the university Chancellor Patrick Gallagher’s discretionary funds, a university official said.

In exchange, the students agree to make monthly contributions in any amount they choose. All those contributions go directly back into the program to lower the debt load of future participants.

While this program is no panacea to the looming student debt crisis — Pennsylvania students, combined, owe $55 billion in federal loan debt — it strikes National Association of Student Financial Aid Administrators President Justin Draeger as a unique approach to promote good feelings alumni have toward their school and encourage them to give back to help others.

'It’ll serve as a model, at least at a local level, to see is this sort of message resonating and one, creating sustainable alumni and two, whether it’s actually going to make a noticeable dent in student loan debt,' he said. 'My hunch is that the people graduating from this school, that will resonate with them, but we’ll see.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 1/2/2019

View Desktop Version