4 ms·
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).
by 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 agoStudent 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 agoThe 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 agoOr 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 agoThis happened in the 90s with the Hope Scholarship, which failed for the obvious reasons.
- caw 14y agoThe 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 agoThat can't be it; there's nothing in there about repayment or treating the loan as equity rather than debt.