Yeah, I get from the company perspective how the risk is spread across multiple candidates.
But from the individual perspective, it seems to be way higher than the max interest rates allow.
Now imagine colleges saying you can pay your $300k 4-year tuition up front or pay us 15% of your salary until you pay us $900k. Already wealthy kids will have an even bigger leg up in life because they'll pay their tuition up front. While those who had to choose between an aggressive loan or no education will have to pay an extra $600k.
Right now, with student loans capped at 5-7% it's still a huge disadvantage to those that need to borrow. I can't imagine if this lending model is extended to classical universities how much a 300% repayment rate will drag down those who are already struggling with 5-7%.
It's a numbers game. Out of N graduates, some will pay back $30K, some will pay back $0, some will pay back something in between. For those who pay back $30K, it may be a bad deal... except they're the ones who made the most in salary, too.
I'm not sure whether that's a fair deal or not.
It seems to me, though, that the hotter I thought I was, the less I should be willing to take this deal, because the more I thought it would cost me...