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Last year, student loan debt hit $1.5 trillion. From free college to loan forgiveness, there are plenty of ideas to lower student debt. At the same time, policymakers are increasingly interested in finding ways to hold colleges accountable for student outcomes.
In this episode of the Report Card, on the AEI Education Podcast, host Nat Malkus talks to Tonio DeSorrento of Vemo Education and Beth Akers of the Manhattan Institute, about an innovative idea that could address both of these concerns: Income share agreements (ISA’s). Under ISA’s, students pay the school a fixed percentage of their income after graduation instead of paying tuition up front. If students earn too little income, they pay nothing.
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