You ignorant capitalist prick - comment from one of our biggest fans.

"Wow. What an ignorant bastard you are. Enjoy your 8-hours-a-day of television you ignorant capitalist prick." Anonymous
Follow us at twitter @ValueOfCollege

Come explore our website at www.ValueOfCollege.com

This blog communicates in tandem with our website http://www.valueofcollege.com/. This blog is updated more frequently but the website is organized around different topics.

Monday, April 14, 2014

Using equity to fund college instead of loans.


Interesting article about the antiquated system we have for funding college today.

At least with the federal home loan programs, the system attempts to qualify their borrowers, such that a borrower has a chance of not defaulting.

But this kind of evaluation is not even a consideration in the college student loan programs. It doesn't matter if you study petroleum engineering or sociology - you can borrow the same amount. And yet the job and income prospect for the two majors are obviously quite different.

This article suggests an equity-like program where an investor funds college in exchange for a part of the future income stream of the student. Conceptually it might work well, but if it is just another government program you can be assured that it will bring in a whole new set of subsidies. The college establishment hates the idea that the petroleum engineering student might get a better deal than the sociology major.



Find Lucky and Good: Risks, Decisions and Bets for Investors, Traders and Entrepreneurs at Amazon.




3 comments:

Dexter jazz said...

The information about the Debt is pretty amazing and the article is also pretty amazing. I want to read this information with my friends. Thanks for sharing this article.
Debt Collection Singapore

Zhang Wei said...

Very Good information about Debt you posted. Must need such useful information related to this topic.

Debt Collection

Gary Hall said...

Concerning values have been well sorted out here and surely for the future would help students regarding all those prospects which are indeed considered to be essential. how to create a bibliography