The journey to a college credential can be fraught with obstacles, and for adult learners, past financial burdens often loom large, preventing them from returning to college and building a better future. A recent webinar hosted by the Michigan Center for Adult College Success tackled this critical issue head-on, exploring innovative debt relief strategies for postsecondary attainment. Featuring insights from the Detroit Regional Chamber, Wayne State University, and Oakland Community College, the session illuminated the “why,” “what,” and crucially, the “how” of implementing effective debt relief programs.
Michelle Burke, Director of Postsecondary Programs and Partnerships at the Michigan Center for Adult College Success, kicked off the webinar by highlighting the pressing need: 48.2% of adults in Michigan lack postsecondary credentials. To address this, the center aims to remove barriers preventing adults from returning to college. Financial concerns are a significant deterrent, as evidenced by a national Lumina Foundation study where 87% of students who dropped out cited finances as a major contributing factor. Furthermore, preliminary data from a survey of 9,400 Michigan Reconnect applicants revealed that 48% are concerned about paying for college, and a surprising 37.5% already hold student loans from previous college experiences. Loan debt and unpaid balances at institutions create a significant hurdle for those wishing to re-engage with higher education.
The Detroit Regional Chamber: A Regional Approach to Systemic Change
Amber Greenway Neher, Director of Student Success and Postsecondary Partnerships with Detroit Drives Degrees at the Detroit Regional Chamber, explained the Chamber’s unique involvement. Driven by the needs of their business members and the recognition that students often move between local institutions, the DRC launched a regional debt forgiveness compact in 2019. This initiative, initially involving Oakland University, Wayne State University, and Henry Ford College, aimed for an unlimited and flexible opportunity with the ambitious goal of reciprocity in debt forgiveness across partner institutions (though the latter faced administrative hurdles).
Neher emphasized the guiding principles behind debt forgiveness: improving graduation rates, addressing financial literacy, cost-effectiveness of retention over recruitment, rebuilding trust with stopouts, and removing the stigma of debt. She also highlighted the equity imperatives, citing a Brandeis University report showing that 75% of Black students take out student loans compared to 57% of white students. Moreover, after 20 years, white borrowers have paid down 94% of their debt, while Black borrowers still owe 95%. Addressing institutional debt proactively can help mitigate these long-term inequities.
Institutional Debt Forgiveness in Action:
- Wayne State University’s Warrior Wayback: A Proven Model
Patrick Beirne, Senior Director of Bursar and Student Financial Services at Wayne State University, shared the success story of their Warrior Wayback program, implemented in 2018. This first-of-its-kind initiative allows students with a prior unpaid balance (initially $1,500, now expanded to $4,000) who have been stopped out for two or more years and are in good academic standing to return, with that balance forgiven over three semesters.
Since its inception, 520 students have been approved for readmission through Warrior Wayback, with 212 having since graduated and 30 more completing the program and working towards graduation, a 68% success rate. Beirne emphasized that the program evolved beyond just debt forgiveness to include robust adult learner support, including specific coaching, career advising, and collaborative handoffs across campus.
Crucially, Beirne presented a compelling Return on Investment (ROI) model. For the 520 students, the total eligible starting debt was $1.5 million. However, Wayne State has realized $7.1 million in lifetime tuition revenue and received over $500,000 in payments from students in the program. Even after forgiving $356,000 in debt and accounting for $760,000 in new balances incurred, the program boasts a 318% ROI. A simple example illustrated this: a student with $4,000 forgiven debt attending for three semesters at $4,000 per semester generates $12,000 in revenue, plus a $1,000 eligibility payment, resulting in a $9,000 return on a $4,000 cost – a 225% ROI that only grows with continued enrollment. - Oakland Community College: Building a Data-Informed Strategy
Kristin Carey-Li, Director of College Strategy, and Steve Simpson, Chief of Staff and Strategy at Oakland Community College (OCC), shared their institution’s journey in developing a debt relief strategy. Learning from the experiences of their regional peers, OCC embarked on a deep examination of their financial practices and student data. This revealed that the average student debt owed to OCC was $834.
Using a Tableau dashboard, OCC analyzed 12 years of data (2011-2023), revealing that students with debt tended to be older (average age 28), predominantly female (almost two-thirds), and disproportionately from underrepresented minority groups (Black/African-American and Hispanic/Latinx). Simpson highlighted the stark correlation between student debt data and graduation equity data, emphasizing the need to address this structural barrier to improve equity and completion rates. He also stressed the opportune moment presented by state scholarship programs like Michigan Reconnect, which can offer a fresh start if past institutional debt is resolved.
Key Lessons Learned for Implementation:
The panelists offered invaluable advice for institutions considering debt relief strategies:
- Patrick Beirne (Wayne State):
- Debt forgiveness is not enough; build a foundation of support for returning adult learners.
- Invest in administrative efficiency and automation from the outset. Manual processes can become overwhelming as the program scales.
- Cross-departmental coordination is crucial. Involve enrollment management, student success, financial aid, and IT.
- Develop a robust reporting model to track both retention/graduation outcomes and financial ROI.
- Quantify the financial ROI to gain buy-in from financial stakeholders. Lifetime revenue is a key factor to emphasize.
- Kristin Carey-Li & Steve Simpson (Oakland Community College):
- Conduct thorough data analysis to understand the scope, demographics, and trends of student debt at your institution. This will inform your strategy and help build internal support.
- Examine your internal processes related to student billing and collections. Identify areas that may inadvertently create barriers or exacerbate inequities. This examination alone can lead to positive changes.
- Recognize that the amounts holding students back may not be as large as you think, but can be significant for the individual student. For example, the average debt at OCC is $834.
- Frame debt relief as a student success initiative focused on academic progress, not simply a financial write-off. Implement guardrails to ensure continued engagement.
- Highlight the potential for financial gain through increased enrollment and retention, alongside the mission-driven benefits of serving more students.
- Strongly encourage collaboration and knowledge sharing with other institutions already engaged in this work. Don’t try to reinvent the wheel.
- When communicating with executive leadership and boards, emphasize the broader family and community benefits of increased graduation rates, especially for community colleges with local funding. Frame it as an investment in social mobility and economic development.
A Path Forward for Adult Learner Success
The insights shared in this webinar paint a clear picture: addressing past institutional debt is not just a matter of financial reconciliation; it’s a strategic imperative for re-engaging adult learners, boosting institutional enrollment and completion rates, and fostering broader economic and social benefits. The success of Wayne State’s Warrior Wayback program and the proactive, data-informed approach of Oakland Community College offer compelling models for other institutions to consider. By understanding the “why,” carefully crafting the “what,” and thoughtfully navigating the “how” of implementation, colleges and universities can remove significant barriers and pave the way for more adults to achieve their educational goals and build brighter futures.
Learn More and Share Your Story:
The Michigan Center for Adult College Success is ready to support all colleges and universities in Michigan with their efforts to serve adult learners and meet Michigan’s Sixty by 30 attainment goal. The Center can match institutional leaders with strategic coaches and relevant subject matter experts to review programs, policies, and processes, ensuring that best practices to serve adult learners are incorporated. For more information and resources on supporting adult learners, visit the Michigan Center for Adult College Success website.
If your institution in Michigan has a promising practice or success story to share in serving adult learners, please email TheCenter@talentfirst.net. Let’s collaborate to amplify these efforts and create a more equitable and accessible postsecondary landscape for all.
