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Fine how does tax funded vs loan funded vs private capital funded education align the interests of the school with the students? The students interest is getti

Fine how does tax funded vs loan funded vs private capital funded education align the interests of the school with the students? The students interest is getting an education, converting that education into employment, and not being indebted. The schools interest is revenue. The student would be best off with a free tax funded education and no debt, the school is best off with guaranteed federal loans allowing them to charge imaginary tuition rates no one can normally afford but for guaranteed student loans. Where is the alignment of interests come from with private capital in exchange for future earnings? Students are left indebted (maybe not in debt but indebted) and schools face the reality the private market isn’t willing to pay runaway tuition costs like guaranteed federal loans because private market knows it’s a bad investment (as evidenced by the current amount of outstanding student loans and default rates, nearly 1million defaults a year). Next thing we know the private investors will begin negotiating tuitions on behalf their investments and leaving non- capital backed students footing the bill for the difference (kind of like our messed up healthcare system).

harryh 8y ago
If a student with an ISA doesn't get a good job after graduation, the school gets nothing (or not much). If the student does get a good job, the school gets paid more. Thus the school is highly incentivized to make sure that their graduating students are highly employable. This is very different from the other systems where the school gets paid no matter what happens after graduation.
- will_brown 8y ago
  >If a student with an ISA doesn't get a good job after graduation, the school gets nothing (or not much). The school isn’t the one making these deals (at least from the example in the article), private investors are entering into these agreements with students. If the student doesn’t get a job the private investors don’t get paid, whereas the school has already been paid.
  - harryh 8y ago
    The financiers are working in close concert with the university. It's basically a partnership.
  - tracker1 8y ago
    If the school doesn't perform, the investors won't keep investing in students going to said school and enrollment drops. It's economics working. It would probably also carry over into fields of study, and length of study with escape hatches.

harryh 8y ago

If a student with an ISA doesn't get a good job after graduation, the school gets nothing (or not much). If the student does get a good job, the school gets paid more. Thus the school is highly incentivized to make sure that their graduating students are highly employable. This is very different from the other systems where the school gets paid no matter what happens after graduation.

will_brown 8y ago
>If a student with an ISA doesn't get a good job after graduation, the school gets nothing (or not much). The school isn’t the one making these deals (at least from the example in the article), private investors are entering into these agreements with students. If the student doesn’t get a job the private investors don’t get paid, whereas the school has already been paid.
- harryh 8y ago
  The financiers are working in close concert with the university. It's basically a partnership.
- tracker1 8y ago
  If the school doesn't perform, the investors won't keep investing in students going to said school and enrollment drops. It's economics working. It would probably also carry over into fields of study, and length of study with escape hatches.