Purdue foundation nears contract for income share program

WEST LAFAYETTE, Ind. (AP) - The Purdue Research Foundation says it is finalizing a contract to pay for student tuition in exchange for a percentage of student income for several years after graduation.

Chief financial officer Brian Edelman said Tuesday the foundation is finalizing a contract with a partner firm to fund tuition. He said they are planning a pilot program with 100 to 300 students, who could get funding for the entire 2016-17 school year.

Purdue announced in August that it was looking for a partner for the agreements that would act as a student loan alternative, the (Lafayette) Journal & Courier (http://on.jconline.com/1LnSypM ) reported.

The university narrowed the search down to one finalist from seven "expressions of interest," but Edelman said it's too early to say which firm it is or how the partnership would operate.

Purdue's faculty senate questioned Edelman and the university's legal counsel on the planned "Bet on a Boiler" program Monday. Edelman estimated that a $10,000 investment could cost a student 3 percent to 5 percent of their income for five to seven years.

Biological sciences professor David Sanders said the program would be "gambling" with students' future incomes. Other faculty members were concerned the program could favor business students or the fields of science, technology, engineering and math, as well as steer the school toward producing high-earning graduates.

Edelman said students of all majors would have access to the program.

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Information from: Journal and Courier, http://www.jconline.com