Enrollment Success
Student loan fear is real, and it’s keeping students from enrolling. Many colleges use Loan Repayment Assistance Programs (LRAPs) to remove that fear, but misconceptions about how these programs work still linger.
Does LRAP forgive loans? Does it create financial risk for the college? How much work is it to manage?
In this post, we’ll clear up the most common myths about LRAP and explain how colleges across the country use it to boost enrollment, support access, and provide peace of mind to students and families.
1. What is LRAP?
- A Loan Repayment Assistance Program (LRAP) helps repay eligible federal, private, and parent PLUS loans if a graduate’s income is modest (typically around $50,000).
- In other words, this powerful financial safety net addresses concerns around affordability and borrowing. LRAP gives students (and families) the confidence to enroll by providing real help after graduation.
2. Why do colleges offer LRAP?
- To reduce financial concerns during enrollment and improve yield, especially among cost-sensitive or risk-averse families.
- LRAP gives families confidence that if early-career earnings are modest, the student will receive support with their loan repayment while getting established. Colleges use LRAP to increase access, reduce melt, and support mission-aligned enrollment growth without discounting tuition.
3. What impact does LRAP have on enrollment? Where can I find third-party research?
- A 2021 Ruffalo Noel Levitz survey of 1,200 matriculated families found that 16.1% said their student would not have enrolled at their chosen institution without LRAP. On average, our clients see a 5X return on their LRAP investment.
- See more research from RNL about the efficacy of LRAPs and how student loan debt concerns impact enrollment decisions in our supplemental results booklet.
4. Who is eligible to receive LRAP?
- Eligibility is determined by the college. Typically, LRAP is awarded to strategic student populations where additional reassurance will impact enrollment decisions.
- Many institutions target first-generation students, specific programs (e.g., education, journalism, social work, etc.), and high-need students (e.g., students with a low SAI). LRAP can be offered broadly or to specific segments depending on institutional goals.
5. Which students benefit most?
- We believe every student deserves financial peace of mind, but LRAP is especially powerful among students who are motivated to attend but financially hesitant.
- This includes students comparing your institution to lower-cost options, families unsure if the investment will “pay off,” and populations considering low-paying career paths, such as teaching.
6. How and when does a graduate qualify for assistance?
To receive repayment assistance, a graduate must:
- Earn a bachelor’s degree from the institution that awarded the LRAP
- Work at least 30 hours per week (in any field)
- Begin loan repayment and earn below the income threshold
Graduates contact Ardeo to request assistance. Ardeo typically processes requests within three business days.
The college is not responsible for processing requests, making payments, or fielding graduate inquiries — Ardeo manages the process end-to-end
7. How much repayment assistance can a graduate receive?
- Assistance is provided on a sliding scale. Graduates with very modest incomes – $25,000 or less – can receive reimbursement for up to 100% of their loan payments. As income rises, the level of assistance decreases until it phases out at the income threshold.
- Put simply: the lower the graduate’s income, the more help they will get.
8. Will my college be liable if Ardeo ever goes out of business? Will graduates still receive assistance?
- Your college has no financial liability if Ardeo ceases operations. Graduates would still receive assistance, up to the full amount allowed by their LRAP award.
- LRAP is backed by an AM Best rated A+ (Superior) insurance carrier, which ensures that benefits are protected even in a worst-case scenario. This structure provides long-term security for both your institution and graduates.
9. How is LRAP different from federal IDR plans?
- Federal income-driven repayment (IDR) plans reduce the borrower’s required monthly payment, while LRAP reimburses the payment itself — putting real dollars back in the graduate’s pocket.
- Additionally, IDR applies only to federal loans. LRAP covers federal student, private alternative, and parent PLUS loans (as well as converted TEACH Grants).
10. What does implementation look like?
- You can launch your LRAP program in as little as 7 days.
- Ardeo provides on-campus training, manages student & graduate communications, eligibility verification, and assistance distribution. The college simply offers LRAP to selected students and references it in their communications.
LRAPs are not complicated, risky, or too good to be true. They’re a proven, data-backed solution helping colleges address one of the biggest obstacles in higher education — student loan anxiety.
By giving families a clear safety net, LRAP helps more students say yes to your college with confidence.
Still have questions? We’re here to help.
