Keystone College wants its graduates to pursue their dream jobs without the worry of student debt.

To prove it, the college will repay its students' loans if they land jobs that pay less than $40,000 a year.

A first in the region, Keystone officials announced Tuesday a new, free student loan forgiveness program based on its graduates' income. The Keystone Commitment Loan Repayment Assistance Program begins with first-time, full-time freshmen starting next fall.

"When students choose Keystone they know we will provide the best education possible and then stand behind them in the years following graduation," said Janine Becker, Ph.D., the college's vice president for enrollment and marketing.

Under the program, Keystone graduates working at least 30 hours per week with an annual income of $20,000 or less will receive 100 percent reimbursement on loan payments. Students earning $30,000 will receive 50 percent reimbursement. The program covers federal, private and parent PLUS loans. Repayment assistance continues until the graduate's income rises above the $40,000 threshold or until the loans are completely paid off.

Students will be able to pursue careers in public service, nonprofits or other fields where salaries may not be high, without worrying about paying the full amount of their loans, Dr. Becker said.

"There are no hidden costs," she said. "It's a great program."

Keystone's program is offered in conjunction with the Loan Repayment Assistance Program Association, based in Indiana. The college pays a fee to the association, which provides a safety net — almost like an insurance policy, Dr. Becker said.

The loan repayment complements another program, Keystone Promise, which pledges that graduates will be accepted into a graduate program or receive at least one job offer within six months of graduation or have the option of returning to Keystone for additional coursework or career guidance.

Law schools began offering loan repayment programs 10 or 15 years ago, and now some undergraduate schools are joining in, said Paul Hassen, spokesman for the National Association of Independent Colleges and Universities. With the number of 18-year-olds in the northeast and mid-Atlantic regions of the United States declining for the next few years, colleges are trying to find new ways to stand out and maintain or increase enrollment.

"It's a value-added service some colleges are using to help students and parents get some reassurance of the value of education the institution is offering," Mr. Hassen said.

Contact the writer:

shofius@timesshamrock.com,

@hofiushallTT on Twitter