Hmm. They’re Doing THIS At Purdue – Will Michigan State Be Next?
Interesting story from The Atlantic. The article is about schools that don't demand payment for tuition until you get a job. And then they take a percentage of your income. The percentage varies, as does the number of years they take that income. This arrangement is called an income-share-agreement, or ISA.
Apparently, this has been "a thing" since the 1950s, but not many schools have offered it. And only about 5% of students and parents have ever heard of it (put me in that group) One of the areas it's growing in popularity are "for-profit" schools that teach computer coding. It's a highly sought after skill, so the schools know graduates will get good jobs and be able to pay pack their costs.
And now, fellow Big 10 school, Purdue University, is offering ISAs as an option. An older article says, for 13,000 in tuition, Purdue would get (and I don't know if this is standard for all students) 4.39% of a students income after graduation, for 100 months, up to a maximum of $32,500. They don't offer it to all students, yet - but they're expanding the program.
I don't know how I feel about the idea. My kids are out on their own and it wouldn't affect me, but - what do you think?
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