Is College Still Worth the Expense?

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Mar 26, 2018
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Student loans, Career development and mentoring

income share agreements

Is college worth the expense for today’s youth? According to economist Rafiq Dossani, it is.

Loans allow students to invest in a college education, and they tend to provide a worthwhile return. With a default rate of about 11%, student loans seem to be affordable for a vast majority of students.

However, students can feel the negative impacts of loans even if they don’t default on them. For example, financial stress can damage wellbeing and force students to work extra jobs instead of focusing on education. While student loans are worth it for most students, there’s still room for improvement.

Don’t want to risk joining the 11% of borrowers who default on loans? There’s a better way: income share agreements. As Dossani points out, loan repayments should be tied to income. Income share agreements do exactly that; students repay a percentage of their future income, eliminating the risk of default.

To learn more about our income share agreements, click here.

For Dossani’s full discussion on student debt, read the article here.

About the Author

Sabrina Kite

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