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Risk transfer is charging tuition. They are sharing the risk - not finding employment means the school doesn't get paid for the education it provided. The onl
by SmellTheGlove 9y ago
Risk transfer is charging tuition. They are sharing the risk - not finding employment means the school doesn't get paid for the education it provided. The only way this isn't taking on some risk is if the marginal cost of the additional student is zero (or de minimis).
- juskrey 9y agoThere is/was a popular scam in Eastern Europe - some middlemen promises to help you with bureaucratic hardships for a bribe and returns your bribe money if he could not help. The thing is the scammer does exactly nothing - just waits if his victim solves the problem himself, and if not - just returns the money saying "sorry, I could not help with the situation".
- SmellTheGlove 9y agoBut in this case they are doing something, right? There's an education. And money isn't changing hands prior to employment. I know nothing about the particulars of this school, I'm just speaking to the concept, but it is entirely distinguishable from what you describe.
- juskrey 9y agoThe job of the scammer is to make his victim think he does some very important things, which always include spending on some bells and whistles.