Income-sharing agreements let students trade future earnings for investment

Re:Income-sharing agreements let students trade future earni... by harryh on Wednesday April 10, 2019 @01:45PM (#19627062)

If a student with an ISA doesn't get a good job after graduation, the school gets nothing (or not much).

If the student does get a good job, the school gets paid more.

Thus the school is highly incentivized to make sure that their graduating students are highly employable.

This is very different from the other systems where the school gets paid no matter what happens after graduation.

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Re:Income-sharing agreements let students trade future earni... by will_brown on Wednesday April 10, 2019 @01:59PM (#19627194)

>If a student with an ISA doesn't get a good job after graduation, the school gets nothing (or not much).

The school isn’t the one making these deals (at least from the example in the article), private investors are entering into these agreements with students.

If the student doesn’t get a job the private investors don’t get paid, whereas the school has already been paid.

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Re:Income-sharing agreements let students trade future earni... by tracker1 on Wednesday April 10, 2019 @06:23PM (#19629341)

If the school doesn't perform, the investors won't keep investing in students going to said school and enrollment drops. It's economics working. It would probably also carry over into fields of study, and length of study with escape hatches.

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Re:Income-sharing agreements let students trade future earni... by harryh on Wednesday April 10, 2019 @05:37PM (#19629049)

The financiers are working in close concert with the university. It's basically a partnership.

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