By Michael Schneider, President
McPherson College

Parents make incredible sacrifices for their kids. They’re even putting off retirement, dipping into their retirement savings, and taking out new loans – just to help their kids graduate from college. Nationally, about 3.6 million parents owe more than $103.6 billion in federal Parent PLUS loans. But parents with kids at McPherson College are creating a new trend.

McPherson College’s fall enrollment has risen annually for the past seven years. And while overall fall 2021 enrollment is up again, our total parent debt is down nearly 17% over last fall.  This sharp reduction in parent debt is due to the Student Debt Project – and the newly launched Kansas Commitment program, which guarantees Pell grant-eligible Kansas residents pay no tuition at McPherson College. Both programs provide MC families financial freedom — making it possible for students to earn their degrees without piling up unnecessary debt.

The Parent Debt Crisis

The media so often focuses on student loan debt, ignoring the fact that families are accumulating significant amounts of debt to fund a student’s education. A few things to consider about the parent loan debt in the United States:

• Over the past 7 years, Parent PLUS loan debt has grown from $62.2 billion to $103.6 billion – a 67% increase, compared with a 39% increase in loans for undergrads.
• From 2003 to 2016, the average combined student and parent debt for Parent PLUS borrowers was nearly $38,000.
• According to Sallie Mae’s 2021 report, about 9% of college costs are paid by parent borrowing.
• Parent PLUS interest rates are high compared to things like auto loans, averaging more than 7% over the past decade. In addition, the government charges parents a 4% fee on top of the loan. The government makes money off Parent PLUS loans, according to the Congressional Budget Office.

The Parent PLUS program was originally designed as a way for higher-income parents to afford private college tuition, yet in 2016 more than 200,000 families who made less than $40,000 took Parent PLUS loans. As the cost of public education has risen, more low- and middle-income parents have started seeking these loans. Unfortunately, government estimates indicate that today at least 1 in 8 parents will default on these loans, making the debt an irrevocable hardship on people who should be enjoying an empty nest and a well-deserved retirement.

While fixing the $1.7 trillion student loan crisis remains a never-ending debate in Washington, the reality is that it continues to grow unchecked. And even if student loan debt is somehow addressed by Congress this year, there’s no guarantee that relief for parent debt will be included in the legislation.

Colleges have no business saddling parents with unmanageable debt. We think colleges owe students and parents opportunities to make college affordable without massive debt—that’s why McPherson College developed the Student Debt Project and Kansas Commitment.

How MC Eliminates Debt

Today, more than one-third of our students are enrolled in the Student Debt Project, a mentorship program that teaches financial literacy skills and lets students apply earned income toward their student debt. McPherson College matches 25% of the funds the students contribute toward debt reduction. For students in the program this year, the average projected debt at graduation has been reduced by $10,000 per student.

This fall, MC’s vision of affordable college expanded further with the introduction of the Kansas Commitment, a program that guarantees full-tuition packages to Kansas residents who are Pell grant eligible and have a transfer or high school GPA of 2.5. The packages are renewable annually for students who continue to meet the eligibility criteria. It’s just one more way we can provide our students financial freedom as they plan a future without student loan debt.

Deanna Curtis is a teacher and single mom. At one point, she had four kids at MC at the same time while she was also in college for an advanced teaching degree. She was able to get her students through McPherson College without any private or Parent PLUS loans. Her twin sons were both in the Student Debt Project and Jake graduated in May without taking any student loans.

Deanna shared that, “the worry about college debt consumes you as a parent. You lay awake at night worrying about it. As a parent, you do without so you can help your children go to college.” The Student Debt Project taught her kids work ethic, determination, responsibility with their time, and to be thoughtful about how they spent their money.

McPherson College isn’t waiting for Washington to find a solution to the student debt crisis. Rather, we’re creating our own roadmap and developing our own financial aid options so we can provide our students the financial freedom they deserve.

As more students take advantage of our Student Debt Project and Kansas Commitment initiatives, we expect our percentage of students graduating with little to no debt will increase. We also expect fewer MC parents will need to apply for Parent PLUS loans.

If Washington could be this creative, the issue of student debt would be solved, and parents would breathe easier knowing they won’t be sacrificing their retirement nest egg to pay off college loans.

The McPherson College Health Science program is teaming with Central Care Cancer Center and the Wichita Wind Surge to supply sunscreen dispensers at Riverfront Stadium in Wichita.

With the baseball season underway and temperatures rising, those attending Wind Surge games, especially day games, will now have easy access to SPF 30 sunscreen at dispensers located around the stadium. Six sunscreen dispensers are located at the entry gates of Riverfront Stadium.

“We are always looking for opportunities to give back to our communities. We are thrilled to join with McPherson College in providing a service to the public that brings convenience to a necessity and allows everyone to enjoy the new beautiful Riverfront Stadium in comfort,” said Logan Schrag, chief strategic officer for Central Care.

Skin cancer is the most common type of cancer. Using a broad-spectrum sunscreen and reapplying often is the best defense against exposure to the sun. The dispensers allow patrons access to sunscreen for every ballpark event, including home games, concerts, and other events.

Melanie and Richard Lundquist

McPherson College has conferred honorary doctorates on Melanie and Richard Lundquist to recognize the couple’s significant body of work in driving systemic change in K-12 public education, health care delivery and innovation as well as the environment. The Doctor of Humane Letters (LHD) degrees are awarded by McPherson College’s Board of Trustees and faculty, who voted unanimously to recognize the Lundquists with the honorary degrees. A special ceremony is being planned on campus for October 2021, contingent on COVID protocols.

In awarding honorary degrees, McPherson College aims to recognize and honor individuals who have distinguished themselves for their achievement and efforts that align with the college’s mission of developing whole persons through scholarship, participation, and service.

“McPherson College is proud to honor Melanie and Richard Lundquist for their body of work that has driven systemic change in so many ways,” said Michael P. Schneider, president of McPherson College, who conferred the degrees virtually earlier this month.

“The Lundquists bring joy and possibility to our life’s work at McPherson College and the work of so many others. They have carved out a path less traveled – helping to improve outcomes for people, especially those living at the margins. While they have created significant and positive impact through their philanthropy, especially in California, their reach touches us in Kansas and in so many other parts of our country. They have been invaluable members of the McPherson College community for years, providing counsel on many matters and expanding our network through their vast connections. We’re truly lucky to have Richard and Melanie as members of the McPherson College family and this conferral recognizes that,” said Schneider.

Melanie and Richard Lundquist are agents of change and two of California’s most significant philanthropists. Their gifts have created the Partnership for Los Angeles Schools, a sustainable, national turnaround model for underserved non-charter K-12 public schools that works within the Los Angeles Unified School District. They have also helped transform health care delivery and spur biomedical research and innovation.  They committed $70 million in February 2019, as an unrestricted gift, to the Los Angeles Biomedical Research Institute (LA BioMed), which was renamed The Lundquist Institute. The institute has more than 120 medical researchers working on 600 studies, including therapies for multiple orphan diseases.

The Lundquists have also led efforts to invest in solutions to climate change through AltaSea at the Port of Los Angeles and critically important marine mammal research at the Marine Mammal Center, the largest marine mammal hospital in the world, located in Sausalito, Calif.

The Lundquists are signatories of the Giving Pledge, the movement where some of the world’s wealthiest individuals and couples commit to give more than half their wealth away. In June 2018, the Chronicle of Philanthropy featured the Lundquists in a profile story titled “A Lifetime Commitment: LA couple, who have signed the Giving Pledge, donate to groups that need them the most.” They have appeared four times on The Philanthropy 50, the annual list of America’s 50 most generous philanthropists, published by the Chronicle of Philanthropy.

The conferral of the honorary doctorates recognizes the Lundquist’s unique mission to leverage their philanthropic commitments to affect significant and measurable impact through driving systemic change, focusing on areas where their gifts can change systems as well as fortunes, not just make incremental progress. They choose not to follow the crowd; instead, they seek to kick off a virtuous cycle that attracts other donors.

“This is humbling for Richard and me. We are especially touched that the honorary degrees are being conferred by McPherson College, a place that for over 130 years has been educating students with a special focus on service. That commitment to others is what inspires us as well. We have had the pleasure of getting to know many McPherson College students and hosting them in California. They are indeed special. Additionally, it takes smart leaders to move a college ahead, and we appreciate the good work of President Schneider and his team. Richard and I look forward to visiting campus in October. We are proud to be Bulldogs,” said Melanie Lundquist.

Founded in 1887, McPherson College is set on a 27-acre campus in McPherson, Kan., one of the top 100 small towns in the U.S. and offers 30 majors and pre-professional programs. US News & World Report ranks McPherson College as one of the top colleges for “social mobility,” enrolling and graduating large proportions of disadvantaged students and as one of the region’s most innovative colleges for innovative improvements in terms of curriculum, faculty, students, campus life and technology or facilities.

The Lundquists’ relationship with McPherson College started in 2014. They were introduced by Paul Russell, chair of the Automotive Restoration National Advisory Board, and since then, have committed well over $1 million to the college’s auto restoration program, the only award-winning four-year bachelor’s degree program for automotive restoration technology in the country.

“The Lundquists are champions for McPherson College’s mission, and more importantly, they are role models for our students – they are people of passion and commitment, focused on improving humanity. We are proud to recognize them with these honorary degrees,” said Amanda Gutierrez, vice president for the college’s auto restoration program. “Their work has created measurable results everywhere they go, and it proves that thoughtful philanthropy can lead to meaningful change.”

Melanie holds undergraduate and graduate degrees from the University of Southern California in communicative disorders/speech pathology and audiology, as well as a credential as a specialist in special education. Richard holds an undergraduate Bachelor of Science from the University of Southern California.

By Michael Schneider, President
McPherson College

Washington, D.C., has been debating the student loan debt issue for years. While politicians argue—and the $1.7 trillion in student debt grows, crippling millions of Americans—McPherson College is taking action. Our Student Debt Project is a practical approach to financial aid that allows our students to pay as they go. It’s a program that blends financial literacy education, mentorship and work ethic, while reinforcing life-skills and values of personal responsibility, self-reliance and financial well-being.

And at the end of four years in the Student Debt Project, our students expect to graduate with little—to zero—debt. That’s a healthy start to their post-college lives, with the financial freedom to become homeowners, start families, and live free of the burden of college debt.

The student debt crisis is real. Nationally, one in five borrowers is in default. In Kansas, 377,000 residents now owe a combined $12.24 billion in student loans, according to the U.S. Department of Education Enterprise Data Warehouse. The total amount of student loans owed by Kansans is up nearly $1 billion dollars since I wrote my first student debt editorial in September 2019.

I am not opposed to student loans, but these totals are irresponsible. At McPherson College, we are proving that large loans are not necessary for a college degree.

By the end of the 2020-2021 academic year, more than 200 McPherson College students will be participating in the Student Debt Project, each assigned to cohorts with over 50 mentors who offer monthly advice on building a budget, setting personal and financial goals, and staying on track to achieve them. Our Career Services department assists each student in finding paid internships or other part-time work to help them pay down their debt. This year, students have already reduced their projected debt at graduation by nearly $10,000 per student. That’s more than a 30-percent reduction in debt, and many still have one, two, or even three more years of college to bring their debt lower or eliminate all of it.

And, as an added incentive, McPherson College matches 25 cents for every dollar the students earn and apply toward reducing or avoiding student loans.

I’m proud of students in the project and want to share a story from a freshman from Goodland, KS. Lola Hipp studies graphic design at McPherson College. She and her older sister are the first in their family to attend college. But the siblings had very different college experiences, and they both think their story is important to share.

Lola’s sister attended a state university but eventually returned home, not only dissatisfied with the state school’s program, but also saddled with more than $25,000 in debt and no college degree. Lola didn’t want to repeat that experience and is working to pay off her college as she goes. She is on track to owe less than $15,000 at graduation, which is half the national average.

Regarding the possibility of national student debt forgiveness, Lola says, “It’s nice for people who have already graduated, and I hope it comes through. But I’m not going to be banking on someone else paying down my loans. I’m proud of myself for working while going to college. I don’t want to rely on the government to pay my debt for me.”

As early as 1996, Congress recognized the issue of rising student debt with the Student Debt Reduction Act of 1996. The name of the act is a little misleading as the act just focused on reducing loan origination fees for high-need students—which is a good idea, but it is hard to see the impact today. It’s been 25 years since this act was introduced, and there have been a handful of other debt reduction acts in Congress since; however, the problem remains unresolved.

We can’t afford to wait for a solution from Washington. Can you?

President Michael Schneider presents the McPherson College Service Award to Monica Rice, director of alumni and constituent relations, at a drive-through awards and dinner celebration.

McPherson College celebrated a combined total of more than 270 years of service to the college when it recognized faculty, staff, and board of trustee members. Faculty and staff were treated to a drive-through dinner and awards presentation on campus. This year’s event replaced the reception and dinner traditionally held honoring those who have served the college from five to 30 years.

Members of the campus administrative team presented the honorees with their award and take-out dinners prepared by the campus food service in front of the campus entrance on Thursday, February 26.

“The outstanding achievements and accomplishments by the honorees in the classroom, within individual departments, and in the McPherson community propel the college beyond being a great college to work for,” said Brenda Stocklin-Smith, director of human resources. “These honorees facilitate world-class experiences for our students and it is in this deep sense of campus community where our students excel to be leaders of the future.”

Those honored included:

5 Years

• Chris Clark, assistant professor of technology
• Amber Dittert, assistant professor of mathematics
• Stephen Hoyer, assistant professor of sociology
• Kirk MacGregor, associate professor of philosophy and religion
• Heather Mierkiewicz, admissions operations associate
• Kevin Morris, computer services assistant
• Bryan Moses, head baseball coach/assistant athletic director of internal operations
• Matthew Porter, assistant professor of business
• Nathan Pollard, assistant professor of digital media
• Monica Rice, director of alumni and constituent relations
• Erik Vogel, vice president for advancement

10 Years

• Norman Hope, associate professor of business
• Josh Hubin, director of admissions
• Marty Sigwing, director of facilities
• Dustin Wilgers, associate professor of natural sciences

15 Years

• Becki Bowman, professor of communication
• Andrew Gustafson, athletics grounds supervisor
• Tom Hurst, Sr., adjunct and former director of service and campus pastor

20 Years

• Garrick Green, professor of automotive restoration technology

25 Years

• Laura Eells, professor of sociology
• Linda Barrett, coordinator of student success and engagement

30 Years

• David Barrett, advancement officer
• Connie Stucky, facilities office manager

Board of Trustees

• Vincette Goerl
• Dr. Paul Ullom-Minnich
• Bill Grove
• Carol Leland