"Across the country, colleges and universities are rolling out a new suite of financial products targeting undergraduates, marketed as "loan" and "degree" insurance. Loan repayment assistant programs (LRAPs), sometimes also called loan repayment guarantees, are a form of loan insurance that protect students against default: If a graduate doesn't earn above a certain threshold, their student loan payments are reimbursed to a certain amount."
"Imagine you are the parent of an incoming college student who wants to study theology, ranked among the lowest-paid majors after graduation. You're proud of their conviction, but also anxious because friends and family keep reminding you that theology is a major for which career prospects are uncertain at best. Then, in the thick of college decision season, you learn that the college your child is considering offers something called "degree insurance":"
Parents and students face anxiety about low-paying majors when colleges introduce degree insurance to guarantee income thresholds for graduates. Colleges and universities are rolling out loan and degree insurance products for undergraduates. Loan Repayment Assistance Programs reimburse student loan payments if graduates fail to earn above a set threshold. Degree insurance tops up wages when graduates earn less than the field's average adjusted for region, for a limited time. LRAPs began at Yale Law in the 1980s to support public-interest lawyers and have expanded as legal education costs rose. Privatization and profit motives are driving expansion of these programs beyond their original scope.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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