Soaring college tuition prices have left Americans drowning in debt without a correspondingly enhanced set of professional skills to show for it. In the past 11 years, US student debt has increased by 157% and 1 in 10 borrowers are over 90 days delinquent.
Universities are incentivized to be unaffordable and don’t have a direct financial interest in the outcomes of their students. The average budget for career services at colleges is $90,000 including salaries, with only one career counselor for every 2,900 students on average.
Income share agreements (ISAs) have been developed as a financing model that could reshape the way education programs operate by aligning interests while expanding access to those programs and limiting payments only to what graduates can afford.
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