An alternative way to pay off college could lead to students paying more in the long run, but many still see it as a better option.
Chris QuintanaAndrew Hoyler had already given up a lot in his effort to become a pilot. He had secured scholarships, took out federal student loans and worked several jobs, but it still wasn’t enough. But his college, Purdue University, had another option for him.
But the arrangement with Purdue, described in the world of college financing as an"income share agreement," could mean graduates like Hoyler end up paying more than they would if they took out a traditional loan. Their payments and salaries are low now, but they're likely to increase.Robert F. Smith paid Morehouse student loans. What about those of us without a billionaire?
“I am also running for school board, something I would not be able to do had I needed to work a second job just to pay off all the student loan debt,” Hoyler said. “An ISA is simply a debt that must be repaid,” they wrote. “It also creates an incentive for funders and private investors to generate as much profit as possible ... a dangerous scenario for students.”This alternative way to pay for college comes at a time when public concern over the nation’s roughly $1.6 trillion student loan debt continues to generate rigorous debate.
With an income share agreement, students who end up working in a low-paying field could pay less than what they originally borrowed. “It was very meaningful to them that their school had the faith to back them up,” Cooper said. “To really have skin in the game to say, 'We believe the value received here for your education is worth it so much so we’ll put our own money behind it.'"
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Former for-profit college students will have $168 million in student debt cancelledThe debt discharge is part of a deal between the CFPB, state attorneys general and a company that managed private student debt on behalf of ITT.
Consulte Mais informação »
Where Does Bernie Sanders Stand On Student Loan Debt?Sanders supports debt-free college. But what about current student loan borrowers?
Consulte Mais informação »
Students of Defunct ITT Tech to Receive $168 Million in Loan ForgivenessThe Consumer Financial Protection Bureau and a coalition of 44 states and the District of Columbia said they had reached a settlement with a lender that worked closely with ITT to forgive the private student loans.
Consulte Mais informação »
For some, student loan debt is doubling, tripling, and even quadruplingOutstanding student loan debt in the U.S. has tripled over the last decade and now stands at almost $1.5 trillion — in part because many people are seeing their individual balances spiral out of control.
Consulte Mais informação »
Why first-time female voters should care about student loan debt policies - Women’s Media CenterI’m hardly the only high school student stressed about navigating what could be crippling student loan debt. This debt has already reached $1.5 trillion and women, who make up the greatest population of student-debt owers, are particularly burdened by debt harsh effects on everyday life.
Consulte Mais informação »
Bill would wipe out most of the country's outstanding student loan debtDemocratic presidential candidate Elizabeth Warren isn't waiting for the election to push forward her sweeping plan to erase the majority of the country's outstanding student debt.
Consulte Mais informação »