• user warning: Table './conserva_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '2:3596071c46b9743399c7c5b626fa0f19' in /home/conserva/public_html/includes/cache.inc on line 27.
  • user warning: Table './conserva_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>STUDENT DEBT: October 23, 2019</p>\n<p>Student loan debt keeps growing.<br />\n There is a better solution than the ones politicians offer, which stick the taxpayer or the loan lenders with the whole bill.<br />\n It&rsquo;s called an &ldquo;income share agreement.&rdquo;</p>\n<p> INVESTORS give money to a college, and the college then gives a free or partially free education to some students. When those students graduate, they pay the college a certain percentage of their future income.<br />\n It&rsquo;s a way &ldquo;for the school to say to students, &lsquo;You&rsquo;re only going to pay us if we help you succeed&rsquo;,&rdquo; explains Beth Akers, co-author of the book &ldquo;Game of Loans.&rdquo;<br />\n Andrew Hoyler was thrilled when Purdue University got him an ISA loan. Now he&rsquo;s a professional pilot, and he&rsquo;ll pay Purdue 8% of his income for 104 months.<br />\n &ldquo;After that 104-month term ends, if you still owe money, it&rsquo;s forgiven, forgotten, you don&rsquo;t owe another penny,&rdquo; he says in my latest video. &ldquo;Now, if I find myself in a six-figure job tomorrow, there&rsquo;s a chance that I&rsquo;ll pay back far more than I took out.&rdquo;<br />\n Hoyler wouldn&rsquo;t mind that, he says, because of &ldquo;the security of knowing that I&rsquo;ll never (have to) pay back more than I can afford.&rdquo;<br />\n What students pay depends partly on what they study.<br />\n On a $10,000 ISA, English majors must pay 4.58% of their income for 116 months. Math majors, because they are more likely to get higher-paying jobs, pay just 3.96% for 96 months.<br />\n &ldquo;It conveys information to the student about how lucrative a different major&rsquo;s going to be,&rdquo; says Akers. &ldquo;Some think that&rsquo;s unfair, but really that&rsquo;s just a way (investors) can recapture the money that they&rsquo;ve put up.&rdquo;<br />\n &ldquo;It may also sway students away from majors that don&rsquo;t have job prospects,&rdquo; says Hoyler. ISA recipients learn &ldquo;not only what a career may pay, but how stable it may be, what the future is like.&rdquo;<br />\n &ldquo;We should invest in students the same way that we invest in startups,&rdquo; says Akers. &ldquo;Share equity.&rdquo;<br />\n With one difference: The college picks the student, so investors don&rsquo;t have a direct relationship with the student.</p>\n<p> PURDUE ISA recipient Paul Larora told me, &ldquo;We don&rsquo;t know who the investor is, but I&rsquo;d love to give him a hug or buy him a beer!&rdquo;<br />\n &ldquo;The institutions are saying, &lsquo;If I&rsquo;m operating as the middleman, I can make sure that no one&rsquo;s taking advantage of my students,&rsquo;&rdquo; explains Akers.<br />\n Sadly, many politicians would rather have the government handle student loans and charge all students the same rate.<br />\n President Barack Obama signed a student debt relief bill that he claimed would &ldquo;cut out private middlemen,&rdquo; meaning banks. He said that &ldquo;would save taxpayers $68 billion!&rdquo; It didn&rsquo;t. Costs to taxpayers increased.<br />\n Some politicians are so clueless that they still blame banks.<br />\n In one hearing, Rep. Maxine Waters, D-Calif., chair of the House Financial Services Committee, demanded JPMorgan Chase CEO Jamie Dimon tell her, &ldquo;What are you guys doing to help us with this student loan debt?&rdquo;<br />\n &ldquo;We stopped doing all student lending,&rdquo; responded Dimon, pointing out that &ldquo;the government took over student lending in 2010.&rdquo;<br />\n Instead of forcing banks out of the loan business, we should get government out of it. Banks are in the business of assessing loan risk.<br />\n If actual private lenders, people with skin in the game, made loans, then they&rsquo;d care about being paid back.<br />\n They&rsquo;d tell students which majors might lead to higher-paying careers and warn them that studying sociology, art history or gender studies may make it tough to get out of debt.<br />\n But with the government charging the same rate to everyone, students don&rsquo;t have much incentive to think about that.<br />\n The Brookings Institution found that 28% of students don&rsquo;t even know they have a loan.<br />\n The market would make better judgments and stop students from starting their adult lives under a burden they may never escape.<br />\n Yet some people still call ISAs &ldquo;predatory&rdquo; because investors hope for profit. They say ISA makes students &ldquo;indentured servants.&rdquo;</p>\n<p> LARORA had a good answer to that, which is also serious advice: &ldquo;If you don&rsquo;t have a job, you&rsquo;re not paying anything! Where&rsquo;s the servitude in that?&rdquo;</p>\n', created = 1575987930, expire = 1576074330, headers = '', serialized = 0 WHERE cid = '2:3596071c46b9743399c7c5b626fa0f19' in /home/conserva/public_html/includes/cache.inc on line 112.
  • user warning: Table './conserva_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '2:1f172c011061785cc78c42ee286be12f' in /home/conserva/public_html/includes/cache.inc on line 27.
  • user warning: Table './conserva_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>STUDENT DEBT: October 23, 2019</p>\n', created = 1575987930, expire = 1576074330, headers = '', serialized = 0 WHERE cid = '2:1f172c011061785cc78c42ee286be12f' in /home/conserva/public_html/includes/cache.inc on line 112.
  • user warning: Table './conserva_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '2:26332461bfe9df08f9ac8dde4bed3db8' in /home/conserva/public_html/includes/cache.inc on line 27.
  • user warning: Table './conserva_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>\n Full text and e-editions are available to premium subscribers only. To subscribe to the digital edition, please visit <a href=\"/content/subscribe\">subscription page</a>. If you are already a subscriber, please <a href=\"/user\">login to the site</a>. You can also request a free sample by using our <a href=\"/content/free-sample-issue\">request form</a>.</p>\n', created = 1575987930, expire = 1576074330, headers = '', serialized = 0 WHERE cid = '2:26332461bfe9df08f9ac8dde4bed3db8' in /home/conserva/public_html/includes/cache.inc on line 112.
  • user warning: Table './conserva_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '2:1cd77f7184da2bafaa6a089469bc2384' in /home/conserva/public_html/includes/cache.inc on line 27.
  • user warning: Table './conserva_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<div id=\"fb-root\"></div>\n<script>(function(d, s, id) {\n var js, fjs = d.getElementsByTagName(s)[0];\n if (d.getElementById(id)) return;\n js = d.createElement(s); js.id = id;\n js.src = \"//connect.facebook.net/en_US/all.js#xfbml=1&appId=452921018151594\";\n fjs.parentNode.insertBefore(js, fjs);\n}(document, \'script\', \'facebook-jssdk\'));</script><div class=\"fb-like-box\" data-href=\"http://www.facebook.com/conservativechronicle\" data-width=\"275\" data-colorscheme=\"light\" data-show-faces=\"true\" data-header=\"true\" data-stream=\"false\" data-show-border=\"true\"></div>\n', created = 1575987930, expire = 1576074330, headers = '', serialized = 0 WHERE cid = '2:1cd77f7184da2bafaa6a089469bc2384' in /home/conserva/public_html/includes/cache.inc on line 112.
  • strict warning: Non-static method view::load() should not be called statically in /home/conserva/public_html/sites/all/modules/views/views.module on line 906.
  • strict warning: Declaration of views_handler_argument::init() should be compatible with views_handler::init(&$view, $options) in /home/conserva/public_html/sites/all/modules/views/handlers/views_handler_argument.inc on line 744.
  • strict warning: Declaration of views_plugin_style_default::options() should be compatible with views_object::options() in /home/conserva/public_html/sites/all/modules/views/plugins/views_plugin_style_default.inc on line 24.
  • strict warning: Declaration of views_plugin_row::options_validate() should be compatible with views_plugin::options_validate(&$form, &$form_state) in /home/conserva/public_html/sites/all/modules/views/plugins/views_plugin_row.inc on line 134.
  • strict warning: Declaration of views_plugin_row::options_submit() should be compatible with views_plugin::options_submit(&$form, &$form_state) in /home/conserva/public_html/sites/all/modules/views/plugins/views_plugin_row.inc on line 134.
  • user warning: Table './conserva_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '5:26776aa5ca60f6f8eb4e7f92178ff26e' in /home/conserva/public_html/includes/cache.inc on line 27.

Better than a loan

STUDENT DEBT: October 23, 2019

Full text and e-editions are available to premium subscribers only. To subscribe to the digital edition, please visit subscription page. If you are already a subscriber, please login to the site. You can also request a free sample by using our request form.