1 Matching Annotations
- Jun 2019
Income share agreements could lower costs and improve outcomes by tying loan amounts to objective judgments of how much the student is likely to earn from her degree. Educational quality could also benefit: Investors would presumably advance students money only for schools that were doing a decent job of teaching them. The risks are that some borrowers could end up paying far more under such a scheme than the current plan and that investors might not lend to students they consider too risky.
The author's counter arguments to Income Share Agreements are not convincing enough for me. They seem abstract and vague.