So as the NY Times notes the next way to get money is to monetize the economic lives of your graduates. One can envision multiple hedge fund type strategies to make profit off of this process. As the Times notes:
At
Purdue University, some undergraduates will have a new option to help
finance their degrees: pledging to pay a percentage of their future
incomes in return for funds today. Starting this fall, juniors and seniors will have access to the school’s Back a Boiler program, an alternative financing arrangement known as an income-share agreement. Such
programs are not loans. Instead, students get funds to cover current
education expenses, and, in return, they agree to pay a percentage of
their future income over an agreed-upon period of time. When that
repayment term ends, so does the student’s obligation, even if their
total payments are less than the amount they received. Though
an emerging corner of the educational finance industry, such programs
help ease the often crushing debt many American college students face
after graduation, proponents say. A small number of lenders have tested
the model in recent years, but Purdue is the first American university
to officially embrace the concept.
This is in my opinion an indentured servitude, and servitude to whomever holds the note. Hopefully students can be more astute but in today's world the helicopter generation has no competence in determining the impact. They will walk freely like lambs to the slaughter.
Posts
