Millions Raised For 'Back a Boiler'
WEST LAFAYETTE - Purdue University's Back a Boiler income share agreement program has netted $10.2 million from fundraising initiatives by the Purdue Research Foundation. The program offers an alternative to students seeking private student loans and Federal Parent PLUS.
Back a Boiler offers a different financing option for education funding in exchange for a percentage of post-graduation income over a 10-year period. Payments don't begin until six months after graduation and adjust with a student's income over the life of the contract. Fund II of the program was closed in October and had a total of 11 investors, including five individual and four institutional investors. The $10.2 million is expected to fund the program for three years.
“The diverse pool of investors and the substantial growth of the fund is a strong indication of the growing interest in income share agreements as an alternative to Parent Plus and private loans to pay for higher education,” said Brian Edelman, president of Purdue Research Foundation. “Also, the growth of the program will enable us to help even more students with financial need pay for their Purdue education without accumulating debt.”
Back a Boiler launched in 2016 and distributed over $2 million to nearly 160 juniors and seniors, and expanded to cover sophomores in 2017. The foundation has doled out nearly $9.5 million to 759 students to date. Applications for the program for spring semester classes are now being accepted. Visit here for more information.