Channels
Log in register
piqd uses cookies and other analytical tools to offer this service and to enhance your user experience.

Your podcast discovery platform

Curious minds select the most fascinating podcasts from around the world. Discover hand-piqd audio recommendations on your favorite topics.

You are currently in channel:

Boom and bust

Malia Politzer
Editor of piqd.com. International Investigative Journalist
View piqer profile
piqer: Malia Politzer
Sunday, 31 March 2019

How To Pay For College? Some Students Are Selling Shares Of Their Future Incomes

Anyone who's gone to college in the U.S. knows that a good education often comes with a hefty price tag. Paying for education isn't easy—and often means that more and more students are taking on considerable debt. 

Currently, student debt is the second-highest consumer debt in the United States, second only to mortgages: As of 2018, student debt has peaked at $1.5 trillion—with an average debt of $37,000 for new grads. 

But what if there was another way to pay? This Planet Money episode explores a new model that some colleges are employing to help students fund their education: Rather than taking out loans, students agree to pay a certain percentage of their income upon graduating to the school for a fixed number of years. Effectively, it's like selling stock shares—except instead of shares of a company, these are shares in their future selves.

The more a student makes upon graduating, the more the university gets back. While it might sound crazy at first, it's actually a concept with precedent: David Bowie attracted investors with a similar model, by selling future shares of royalties to investors in exchange for a larger up-front payment. 

Could this be the solution to the U.S. student debt problem? Perhaps not entirely—but it's a promising idea definitely worth exploring, and makes for a fascinating listen.

How To Pay For College? Some Students Are Selling Shares Of Their Future Incomes
5
0 votes
relevant?

Would you like to comment? Then register now for free!