3 ms·
On a related note: a good alternative to student loans would be letting students sell a small percentage of their income over the next (say) 20-30 years in exch
by pjscott 15y ago
On a related note: a good alternative to student loans would be letting students sell a small percentage of their income over the next (say) 20-30 years in exchange for all or part of their college tuition. This would be lower-risk to students than loans, and give investors an incentive to help students get a lucrative education and a decently-paying job.
Student loan debts are really a problem.
- guga31bb 15y agoSounds like Australia's system [1]: "This funding is in the form of loans that are not normal debts. They are repaid over time via a supplementary tax, using a sliding scale based on taxable income. As a consequence, loan repayments are only made when the former student has income to support the repayments." [1] http://en.wikipedia.org/wiki/Student_loan#Australia http://en.wikipedia.org/wiki/Student_loan#Australia
- pjscott 15y agoThere's a huge difference: the Australian system doesn't allow student loan investors (just the government?) to get more than the inflation-adjusted value of the interest-free loan. A percentage-of-earnings scheme, by not placing such a limit on the amount of money investors can make, would have two interesting effects: 1. Investors would have more incentive to help students succeed financially, since they get a cut of the profits. 2. Students who strike it rich would, in a competitive market, end up subsidizing everybody else. Think startups: the returns on VC's money come disproportionately from a few successes, and this lets them invest in a bunch of companies that probably won't be big hits, to get the few that will get big.