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This is indentured servitude, and expressly forbidden in the United States.
by ouid 6y ago
This is indentured servitude, and expressly forbidden in the United States.
- klmadfejno 6y agoThis is not indentured servitude and such agreements are actively used today. (Though it is still a terrible solution)
- barry-cotter 6y agoNo it isn’t. https://en.wikipedia.org/wiki/Income_share_agreement https://en.wikipedia.org/wiki/Income_share_agreement > An income share agreement (or ISA) is a financial structure in which an individual or organization provides something of value (often a fixed amount of money) to a recipient who, in exchange, agrees to pay back a percentage of their income for a fixed number of years. ... > Common Concerns Indentured Servitude > However, advocates of ISAs contend that since students have no legal obligation to work in a particular industry, and since it is illegal for investors to pressure them into a certain career, students are no more “indentured” than those with a student loan. In fact, someone with a traditional student loan has less choice than someone with an ISA, because the student with a loan needs to be in a career where they make at least enough income to cover their monthly payment, whereas someone with an ISA can choose to never make any money, and would never owe the investor a dime.
- dragandj 6y agoSomeone who does not make any money doesn't need to care about student loans either. Please correct me if I'm wrong, but the debt collectors can only collect what exists. They can't force you into the debtors prison. As long as you don't have anything, you don't have to worry about anyone coming after you (in the USA).
- barry-cotter 6y agoIf you have assets you need to care about debt but the same is not true of an income share agreement. You can have assets without income from sources other than selling those assets.
- ouid 6y agoIf it's not dischargeable in bankruptcy, it's indentured. The relevant question is "what is it acceptable to own?", and if your answer includes "human capital" your answer includes "people" and that makes you pro-slavery.
- barry-cotter 6y ago> If it's not dischargeable in bankruptcy, it's indentured. In that case student debt is indenture and ISAs aren’t.
- karagenit 6y agoWhat?? This is literally the definition of a student loan: the bank gives the student some money now, and the student agrees to give them a certain amount of money out of their paycheck for a number of years after graduation. Indentured servitude involves work without pay for a period of time. Quit talking about things you don't understand.
- christiansakai 6y agoIt seems better than student loans. If the students don't make an income or make a lower income, then the percentage is lower as well.
- Ididntdothis 6y agoThat’s actually a good agreement if not done in a predatory way. Which it is almost to be guaranteed if the finance guys set the terms of such an agreement.
- paulcole 6y agohe said confidently and incorrectly https://studentloanhero.com/featured/coding-boot-camps-deferred-tuition/ https://studentloanhero.com/featured/coding-boot-camps-defer...