Nov 20, 2020
1 mins read
I have a ton of reading energy this week, thanks to all your coffees (and cookies), so I wanted to share with you a great article that I just read in Harper’s Magazine. It’s definitely going to be featured in next week’s issue. But you get it first. Here it is:
It’s called “Skin in the Game,” and it’s about the newest way to pay for college. Here’s how it works: Colleges tell prospective students, “Don’t worry about paying tuition. We’ll pay it for you. All you need to do is pay a percentage of your future salary for a number of years.”
Sounds great, right? Except here’s what happens next: Colleges don’t actually have this money for free tuition, so they approach private investors and say, “Want to gamble on real people?” And they do. Yes, it’s a form of indentured servitude.
I mean, I guess all loans are — but this one feels especially icky and very predatory, given that it’s private and determined by the market. One quick example is that if you’re a student and you major in computer science, your rate is lower than if you major in English. Another problem is if you don’t complete your degree, too bad for you. You’re still paying.
Here’s the article in case you want to read it before next Thursday. Have a great weekend!