Student loans actually come on less friendly terms; with loans, the amount of money you pay doesn't depend on your post-school income, so the financial burden f

Student loans actually come on less friendly terms; with loans, the amount of money you pay doesn't depend on your post-school income, so the financial burden falls equally on everyone regardless of their ability to bear it. Imagine, hypothetically, that the student loan system were replaced with percent-of-income contracts like the one in the OP. This would give investors an incentive to maximize the total future income of the students they invest in, minus school cost. There are some problems with that, but frankly, I much prefer those incentives to the ones created by the current student loan system, where the most profitable strategy is to get students in as much debt as possible.