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The Student Debt Dilemma With Constantine Yannelis

Capitalisn't

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The Biggest Problem Is Four Profit Colleges

Four profit colleges account for about ten per cent of all enrolment and 20 per cent of student loan borrowers. The problem is just the way that we've set up the incentive structure for profit maximizing schools, he says. "If you're a hyper rational school, you just want to make a profit" He suggests income share agreements where students could pay a portion of their income to the school rather than paying tuition.

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