Re:The Lasting Consequences of Student Debt
by austenallred on Tuesday April 04, 2017 @11:54AM
(#14034005)
> The school would seem to have a strong incentive to only accept applicants who they are pretty sure will make a lot of money. The incentive isn't to teach anyone who shows up
That's true at first, but at a certain point the incremental cost of each additional student gets really low. Consider existing scholarships and financial aid - you can work in a level of "default" or "higher risk" into the student "portfolio".
> The school would have a strong incentive to control the lives of students
That's true
> Collecting a percentage of income might be difficult to enforce
Not sure how it's more difficult to enforce than any other type of debt, other than if income is misreported. (That's easy: require a W2).
> Legslly, can you sign a contract that permanently grants a percentage of your income?
I don't view it as a "permanently" thing. Just x% for the first y years.
That's true at first, but at a certain point the incremental cost of each additional student gets really low. Consider existing scholarships and financial aid - you can work in a level of "default" or "higher risk" into the student "portfolio".
> The school would have a strong incentive to control the lives of students
That's true
> Collecting a percentage of income might be difficult to enforce
Not sure how it's more difficult to enforce than any other type of debt, other than if income is misreported. (That's easy: require a W2).
> Legslly, can you sign a contract that permanently grants a percentage of your income?
I don't view it as a "permanently" thing. Just x% for the first y years.