The Student Debt Dilemma With Constantine Yannelis
Capitalisn't
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Is There a Way to Make Student Loans Work Better?
Politicians want to hide some of the cost of these programs. By hiding it, they do this complicated system that end out creating more leakages and more problems than the subsidy to begin with. One thing that we can do is fix this misalignment of incentives. Brazil recently had a very similar problem with four profit colleges. There's also a more direct way to do it, through income share agreements. This is basically an equity type a contract, where students pay a portion of their income,. rather than a debt contract. Wi inserts a modern, a modern day serf system, right? In a way that the people who are least able to afford it end up owing a chunk of
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