A lucky student on Thursday knew he was the recipient of the 1,000th contract to receive funding from the “Back a Boiler - Income Share Agreement Fund” but was surprised to learn that what he was anticipating to pay back to the program after graduation would then be cut by 50%.
Kai Mangiaracina, a junior in the Polytechnic Institute, said he understands the financial burdens that come along with college. Mangiaracina, like many other students, is an out-of-state student who was looking for ways to help pay for tuition when he found Back a Boiler.
“I was looking for other ways to pay for college because loans are scary, especially with interest rates,” Mangiaracina said.
Back a Boiler differs from federal and private loans as it “offers students an equity-based option to receive education funding in exchange for an agreed-upon percentage of post-graduation income over a set number of years,” according to a Purdue News press release.
The program currently has 760 students in the program with over 1,200 funding contracts, according to the release. Heidi Carl, executive director in the division of financial aid, said the program has grown more than 25% in the fall of 2019.
Back a Boiler launched during the 2016-2017 school year and has given $13.9 million in funding to students. Though Mangiaracina received the 1,000th contract, he was not the 1,000th applicant enrolled in the program. Many students apply for more than one contract as it only covers a full year. Mangiaracina is on his second contract.
“I don’t even know how to react to it,” Mangiaracina said, smiling. “Nothing has really happened like this to me, so it’s pretty crazy.”
After his graduation, Mangiaracina plans to go into design engineering, particularly the manufacturing field.
“It reassures you that like if you’re not going to get the greatest job out of college, you’re not just going to go homeless,” he said, “which is really, really reassuring.”