One of the most important factors that young adults take into consideration when applying to colleges is how much their tuition will be. There are many times when students will avoid selecting the college of their dreams simply because it just costs too much money. Student loans can be a huge burden. In fact, it is estimated that over 50% of college students in the U.S. must go into debt to pay for college and the average amount of debt accrued in 2020 was $37,500.
College students may also struggle to find positions with companies after they graduate. Unfortunately, this can lead to their debt increasing as they cannot make payments and accrue interest.
At Make School, we believe that our alumni shouldn't have to struggle to pay off their student loans while they're looking for a job that fits their needs, which is why we created our Extended Income Based Repayment (EIBR) protection plan. The EIBR protection plan ensures that any alum of Make School who is unemployed or underemployed won't go into further debt while searching for his or her dream job. All private and parent loans taken out to pay for Make School are automatically covered by our EIBR protection plan.
Our EIBR protection plan gives our students great peace of mind so they can focus on their studies and worry less about their future finances. If you'd like to learn more, please continue reading to get answers to some commonly asked questions about EIBR.
What Exactly is the EIBR Protection Plan?
The EIBR protection plan keeps student loans affordable for all of our unemployed or underemployed alumni. We strongly believe that you shouldn't have to pay for your student loans after Make School if you are unsuccessful in finding a job that fits your needs. We wanted to take on the responsibility of bearing the financial burden for our struggling alumni, and ensure that they're taken care of. Our students are part of our community and it is important to us that they are taken care of both while attending school and after they graduate.
What Does the EIBR Protection Plan Cover?
Loans that are covered under the EIBR protection plan:
- Parent Plus and private education loans that are certified by Make School or Dominican University Financial Aid, not to exceed Make School's published cost of attendance.
Loans that aren't covered under the EIBR protection plan:
- Loans from family and friends, for personal loans from banks or other sources, or for any debt incurred to pay for other academic programs.
- Students loans with repayment terms shorter than 10 years or 120 payments total.
- Loans that already have provisions for income-based repayment (including Direct Subsidized and Unsubsidized Federal student loans).
How is the EIBR Protection Plan Covered?
The EIBR program is funded by Make School and independently administered by a non-profit organization with transparent financials. Our biggest mission is to ensure that our students achieve positive outcomes after graduating from our college.
What Are the Terms of the Repayment Protection Window?
The standard repayment protection window is the life of the covered loans or 10 years, whichever is less. Coverage expires when a student begins to earn a $75,000 annual salary or contracting income for at least 18 consecutive months.
Please be aware that the following conditions will affect the length of the repayment protection window:
- Starting a Start-Up: If a Make School alumni is employed by a startup they have founded for more than 1 year without making an annual income of $50,000 or more, coverage will expire.
- Withdrawal From the Program: If a student withdraws from the program prior to graduation for an internship at any salary, contract work with milestone-based pay, or contact work/employment with an annual salary under $75,000 a year.
- Career Change: If a student changes careers and decides to no longer pursue employment in tech, coverage will expire.
- Living Abroad: International salaries typically are significantly lower than domestic salaries, so if a student lives abroad for more than 6 months while receiving EIBR coverage payments, coverage will expire.
- Resuming Attendance: If a student previously left Make School in good standing and wants to then resume attendance, the coverage window will reset to the standard coverage window.
By introducing the Extended Income-Based Repayment protection plan, we've been able to help so many Make School alumni. We do this by lifting the financial weight off of their shoulders so they can focus on finding their dream job. We want each of our students to be successful.
This was Part 1 of our Extended Income Based Repayment Protection Plan blog series. If you're interested in learning more about the EIBR protection plan, including in-school criteria, out-of-school criteria, and how to apply for our EIBR protection plan, stay tuned for Part 2.