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LRAP Mythbusters – 5 things you might not know

January 12, 2016

As more colleges adopt the use of LRAP as an enrollment tool, we’ve overheard some misconceptions about the product and how Ardeo’s Loan Repayment Assistance Program works.  We’re clearing up a few of those.  Our hope is that by dispelling them, you might consider with fresh eyes what LRAP could do for you.

Warning: you shouldn’t read this if you don’t want your myths busted.

Myth #1 and #2: “You have to use LRAP with all of your students”. Or the variation, “You have to use it with at least X students”.  LRAP is an enrollment tool that puts you in the driver’s seat, and provides the opportunity to scale the use to your enrollment goals.  Your goals, your decision, paired with our support and best practice insights.
Myth #3: “LRAP isn’t as effective as providing additional institutional aid”. Most colleges are already offering as much institutional aid as they can afford.  Research by Credo shows that to enroll a non-matric with additional aid is expensive, with 95% needing $4,000 or more to change a decision.  Given the size of those gaps, additional aid isn’t a likely path, and our per-student fee is much less than $4,000.  Much less.

Myth #4: “If I use LRAP, I will be stuck using it forever”. Not true. Each college can choose from year to year whether they will enroll new students with LRAP.

Myth #5: “LRAP is too good to be true”. Research among admissions directors show that 76% believe that concerns over loans are negatively impacting enrollment decisions.  Research conducted by University of Michigan shows that when a student or family is aware of their LRAP award, it impacts 74% of enrollment decisions.  LRAP is proven to impact enrollment decisions.

Have we busted any LRAP myths for you?  If you still have others, then we’d like to hear them and have the opportunity to bust them as well. Feel free to shoot us an email.