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Equity-based student loan funding is way less predatory than debt-based student loans, in my opinion, but every comment I read screams "slavery" and "wage-slave
by Talyen42 8y ago
Equity-based student loan funding is way less predatory than debt-based student loans, in my opinion, but every comment I read screams "slavery" and "wage-slave".
Of course, both types of funding can be benevolent and/or predatory depending on how you structure the terms, just like anything else. Unfortunately, our laws don't do a very good job of educating or warning young adults who are all entering predatory loan agreements that can't be voided even in bankruptcy.
- jacknews 8y agoThe answer of course is that society should fund education in the same way as it does roads, bridges, national parks, security, governance, and other social goods. With tax dollars.
- tantalor 8y agoAll that stuff is funded with borrowing, not taxes.
- Matticus_Rex 8y agoHow do you think the loans get paid back, exactly? It's funded with borrowing because it makes no sense to take in enough tax revenues to build something in a single year when it's going to get used for twenty.
- tantalor 8y agoHow are the loans paid back? Easy, more borrowing!
- rayiner 8y agoOur roads and bridges are in shambles, while our universities are the best in the world.
- dane-pgp 8y agoIs that because millionaires are prepared to give large donations to universities (especially if their kids get a place at the university in return), while they're not so generous when it comes to funding roads and bridges which are used by poor people?
- screye 8y agoIt might be because most people here are software engineers. If a person's new grad salary is high enough to pay off student loans inside of 2 years, then this arrangement is a lot worse financially than a simple student loan. The job market for CS, also makes it so, that a loan is pretty low risk. a half-decent job is nearly guaranteed. Flip the major to something with a lot more income insecurity, and these schemes make sense. > Vemo Education, which vets students at Purdue and a handful of other schools on behalf of potential investors. This statement does worry me though. It seems like they would only invest in a candidate if they were already on their path to success. These candidates were probably never at risk of not paying their student loans in the first place. I wonder if they expanded their pool to more risk prone students, would such an investment system be sustainable at all ?