The cost of tertiary education is now such a burden to students in the United States that some have taken to selling a portion of their potential future earnings to fund it.
Bloomberg reports that Purdue University in Indiana has arranged more than 700 contracts worth $9.5-million and has secured investment funds totalling $17-million since piloting an income share agreement programme in 2016. With student debt currently weighing down the US economy — Bloomberg puts the amount at the end of 2018 at $1.5-trillion — students have had to find new ways to finance their studies. Traditional sources of funding — scholarships, bursaries, government grants and loans — are either unavailable or too expensive.
Now private companies and some universities are putting in place agreements between students and investors that see the students’ education paid for in exchange for a certain fixed percentage of their future salary for a period after graduation.This article is only available to
It's financial engineering that simply means mortgaging future earnings-DEBT at above market rates that will practically cripple them financially
I don’t know, sounds like debt to me🤷🏽♂️