Loan Program Aims to Grow Critical Sectors in Northeast Indiana
In a time when budgets are tight not only for businesses but families as well, having half of a college loan forgiven may seem like a fantasy for students. However, an organization in northeast Indiana is investing more than $500,000 to aid area college students who pursue careers in advanced manufacturing and engineering. The Questa Foundation for Education's ½ Back Loan Program is striving to fill the area's work force pipeline for a windfall of jobs predicted for the region.
With six large defense contractors, several manufacturers and a long list of suppliers in the region that employ thousands, northeast Indiana leaders say the advanced manufacturing, defense and aerospace sectors are critical to the region's economy. However, the area is anticipating a wave of baby boom retirements in the coming years and predicting that several thousand jobs will be available in these sectors in the next five to 10 years."We want to make sure we've got the talent pipeline to fill those jobs when they become available," says Leonard Helfrich, grant director for the Talent Initiative, a regional program focused on advancing educational and training initiatives. "The defense, aerospace and advanced manufacturing industries provide high paying, high quality jobs; those are the exact jobs we want to encourage to remain in our area." Listen
In addition to encouraging jobs and employers to remain in the area, leaders are now enticing students to remain in northeast Indiana.
"We know less than 35 percent of students who leave the region for college actually come back to live and work," says Questa Foundation for Education Executive Director Christina Smith. "We want to provide some added incentives for these engineering students to consider study in our region, because we think that's going to help with grad retention." Listen
Questa Foundation leaders say they offer the only college loan program of its kind in the nation. Students can borrow $20,000 and receive up to 50 percent in debt forgiveness if they maintain GPA requirements and commit to live and work in the 11 county region of northeast Indiana for five years after graduation. The five-year $500,000 investment focused on advanced manufacturing and engineering is the first time in the program's history that funds have been earmarked for a specific field of study.
"The reason we picked defense, aerospace and advanced manufacturing is because there's a great need; there's going to be jobs there," says Smith. "This is the only program of its kind where we ask young people to have skin in the game. We want them to perform well, but in addition, we want to incentivize and entice them to remain in the region and commit to its economic growth." Listen
Regional leaders are also hoping to reverse an alarming trend in the area; per capita income for the region has been declining in recent years.
"I think it's partly because there have been a number of moves of corporate centers. It's no fault of anyone, but [the corporation] takes higher paying jobs with it when it leaves town," says Helfrich. "If you don't maintain your talent pipeline over the course of a decade or two, the corporation may just leave behind the lower paying jobs."
In addition to its $500,000 commitment, Questa will earmark six loan awards for students who pursue an advanced manufacturing degree at Ivy Tech Community College Northeast.
The organization is also committing 10 percent of its annual loan awards for students who study engineering at Indiana University-Purdue University Fort Wayne (IPFW), Indiana Tech and Trine University. In addition to Questa forgiving 50 percent of the loans, the three institutions have agreed to pay an additional 25 percent, meaning students could have 75 percent of their college loan forgiven.
"If a student borrows $20,000 for a four-year degree in engineering, we forgive 50 percent of it, and the university pays back another 25 percent," says Smith. "That student walks away with a bachelor's degree and only $5,000 of debt. That's a deal!"
The Questa initiative is addressing a looming work force shortage that's also being addressed by other industry groups across the state. Conexus Indiana's "Dream It. Do It." campaign, for example, is encouraging young Hoosiers to enroll in industry-approved educational programs to pursue careers in manufacturing and logistics.
Questa leaders are hoping reduced student loan debt and a near-guarantee that a job will be waiting after graduation near their hometown is a scenario that entices young people to remain in northeast Indiana—utilizing their talent to support the region's economic growth.