8 ms·

I can't help but feel that if this was financially legally binding - for him to have to pay these dividends - it would be a great way to fund your way through c

I can't help but feel that if this was financially legally binding - for him to have to pay these dividends - it would be a great way to fund your way through college, E.G: I'm too poor to afford college, if you fund me the $40,000, you can have 10% of my life income. It makes sense, assuming you pick your candidates wisely and aren't scammed (and that's a big if!): $40,000 down-payment for 10% 10% per year for $3,500 per year [1] over a career of around 30 years: 30 * 3,500 = $105,000 Average profit: $65,000 [1] http://en.wikipedia.org/wiki/Personal_income_in_the_United_States#By_educational_attainment http://en.wikipedia.org/wiki/Personal_income_in_the_United_S...

mootothemax 14y ago
From the article: "Upstart.com, a company founded last year by Google exec David Girouard, offers a bit of capital in exchange for a cut of a college graduate’s future earnings."
- shanelja 14y ago
  I checked the link - it's not exactly right, they are funding graduates who have already completed their college course, and it has to be minimum a 4 year course. What I meant, was funding 18-30 year olds to actually go to college, obviously, something like "history of art" would probably not have significant returns, but a Masters in CS? They would rake the money in. (P.S. It's US only unfortunately and I'm in the UK)
  - sksksk 14y ago
    I'd say that student loans in the UK work more closely to how this investment scheme works (you only pay back if you earn over a certain threshold)
- count 14y ago
  How is this different from a student loan? Bank gives student $100k, student pays bank $250/mo for 30 years (or whatever the terms are).
  - shanelja 14y ago
    Student loans are way too low, on virtue of the smaller returns, some people may prefer a little comfort than living on Ramen noodles for 4 years.
  - keenerd 14y ago
    The bank wants their money regardless of how much you earn. With this scheme, if you don't earn anything you don't pay anything and when you do pay it is always a managable amount. This sort of arrangement could be very handy for a programmer-mendicant or compulsive volunteer.
    - Ygg2 14y ago
      Or a a nefarious person. Upstart deal sounds too good. With some Hollywood accounting, you might even be able to skip paying them anything.
      - Evbn 14y ago
        This happened in the 90s with the Hope Scholarship, which failed for the obvious reasons.
        caw 14y ago
        The HOPE scholarship, if you're referring to the one in Georgia (http://en.wikipedia.org/wiki/HOPE_Scholarship http://en.wikipedia.org/wiki/HOPE_Scholarship) is still alive. I went to school, getting full tuition plus a book and fee stipend for my undergraduate degree. Eligibility became more difficult sometime after I graduated, but it's still around.
        gwern 14y ago
        That can't be it; there's nothing in there about repayment or treating the loan as equity rather than debt.
marquis 14y ago
>it would be a great way to fund your way through college Isn't this called a 'student loan'?
- shanelja 14y ago
  Answered this below: https://news.ycombinator.com/item?id=5454553 https://news.ycombinator.com/item?id=5454553
  - marquis 14y ago
    >some people may prefer a little comfort than living on Ramen noodles for 4 years Hm, I'd be wary of investing in someone who was more interested in having nice things than focusing on their education. Is it really that bad for students these days, living without a dishwasher and cocktails three times a week? I know students in NYC and London who don't seem to be complaining about poverty.
    - shanelja 14y ago
      To be honest, I don't have a clue - I'm not now nor have ever been a college level student, I taught myself, but in the UK, students seem to live pretty poorly.
    - pi18n 14y ago
      I'd prefer to invest in a student that is going to be more responsible about their health than eating ramen for a significant portion of their meals. But I'd also rather not invest in one that is going to spend it frivolously drinking every day of the week. Alas, if only there was a rational middle ground position to hold.
      - shanelja 14y ago
        Ramen noodles were just an example to be honest, personally, I've been through a student style life in the last year or so - at one point I had nearly no money for food, but now I have a moderate income, I mostly eat home cooked meals with the occasional pack of noodles. They aren't a terrible meal if you add some real meat and vegetables in the mix.
eli_gottlieb 14y ago
Shut up and stop giving the capitalist class ideas. We want to put this all off for as long as we can.
- shanelja 14y ago
  Your reply was a little passive aggressive but I'll respond amicably: sure, it might be a little "capitalist" to have the idea of selling your life's work for start up capital but it's the same as any other industry - you get a mortgage for your home, you get a student loan for your college, you sell equity to fund your start up. In all honesty, I don't see the issue with this, it will force the college loan office to be more competitive, at the moment it holds a monopoly, which is more capitalist? One "company" (because it IS a for profit organization) which controls every single loan, or multiple entities/individuals competing to give the best one?

mootothemax 14y ago

From the article: "Upstart.com, a company founded last year by Google exec David Girouard, offers a bit of capital in exchange for a cut of a college graduate’s future earnings."

shanelja 14y ago
I checked the link - it's not exactly right, they are funding graduates who have already completed their college course, and it has to be minimum a 4 year course. What I meant, was funding 18-30 year olds to actually go to college, obviously, something like "history of art" would probably not have significant returns, but a Masters in CS? They would rake the money in. (P.S. It's US only unfortunately and I'm in the UK)
- sksksk 14y ago
  I'd say that student loans in the UK work more closely to how this investment scheme works (you only pay back if you earn over a certain threshold)
count 14y ago
How is this different from a student loan? Bank gives student $100k, student pays bank $250/mo for 30 years (or whatever the terms are).
- shanelja 14y ago
  Student loans are way too low, on virtue of the smaller returns, some people may prefer a little comfort than living on Ramen noodles for 4 years.
- keenerd 14y ago
  The bank wants their money regardless of how much you earn. With this scheme, if you don't earn anything you don't pay anything and when you do pay it is always a managable amount. This sort of arrangement could be very handy for a programmer-mendicant or compulsive volunteer.
  - Ygg2 14y ago
    Or a a nefarious person. Upstart deal sounds too good. With some Hollywood accounting, you might even be able to skip paying them anything.
    - Evbn 14y ago
      This happened in the 90s with the Hope Scholarship, which failed for the obvious reasons.
      - caw 14y ago
        The HOPE scholarship, if you're referring to the one in Georgia (http://en.wikipedia.org/wiki/HOPE_Scholarship http://en.wikipedia.org/wiki/HOPE_Scholarship) is still alive. I went to school, getting full tuition plus a book and fee stipend for my undergraduate degree. Eligibility became more difficult sometime after I graduated, but it's still around.
        gwern 14y ago
        That can't be it; there's nothing in there about repayment or treating the loan as equity rather than debt.

marquis 14y ago

>it would be a great way to fund your way through college Isn't this called a 'student loan'?

shanelja 14y ago
Answered this below: https://news.ycombinator.com/item?id=5454553 https://news.ycombinator.com/item?id=5454553
- marquis 14y ago
  >some people may prefer a little comfort than living on Ramen noodles for 4 years Hm, I'd be wary of investing in someone who was more interested in having nice things than focusing on their education. Is it really that bad for students these days, living without a dishwasher and cocktails three times a week? I know students in NYC and London who don't seem to be complaining about poverty.
  - shanelja 14y ago
    To be honest, I don't have a clue - I'm not now nor have ever been a college level student, I taught myself, but in the UK, students seem to live pretty poorly.
  - pi18n 14y ago
    I'd prefer to invest in a student that is going to be more responsible about their health than eating ramen for a significant portion of their meals. But I'd also rather not invest in one that is going to spend it frivolously drinking every day of the week. Alas, if only there was a rational middle ground position to hold.
    - shanelja 14y ago
      Ramen noodles were just an example to be honest, personally, I've been through a student style life in the last year or so - at one point I had nearly no money for food, but now I have a moderate income, I mostly eat home cooked meals with the occasional pack of noodles. They aren't a terrible meal if you add some real meat and vegetables in the mix.

eli_gottlieb 14y ago

Shut up and stop giving the capitalist class ideas. We want to put this all off for as long as we can.

shanelja 14y ago
Your reply was a little passive aggressive but I'll respond amicably: sure, it might be a little "capitalist" to have the idea of selling your life's work for start up capital but it's the same as any other industry - you get a mortgage for your home, you get a student loan for your college, you sell equity to fund your start up. In all honesty, I don't see the issue with this, it will force the college loan office to be more competitive, at the moment it holds a monopoly, which is more capitalist? One "company" (because it IS a for profit organization) which controls every single loan, or multiple entities/individuals competing to give the best one?