Today, most income share agreements – arrangements in which students pay a fixed percentage of their income for a limited period of time after graduation – are small. They are limited to a few schools and complement other forms of financial aid. But what if we overhaul the entire federal loan system using a system similar to an income share agreement?
In this episode, host Nat Malkus talks to Jason Delisle of AEI – who has proposed this idea – and Colleen Campbell of the Center for American Progress about how it would work, the tradeoff between simplicity and flexibility, and whether the concept is as simple as it seems.
Related: How to make student debt affordable and equitable | Jason Delisle | Manhattan Institute, July 2019.