"Bankruptcy laws allow companies to smoothly reorganize, but not college graduates burdened by student loans."
A new way emerges to cover college tuition. But is it a better way?
Source Date:
Sunday, December 31, 2017
Categories:
Nestled along the San Diego coastline, Point Loma Nazarene University is a world away from Wall Street. But the Christian liberal arts college is at the forefront of financial innovation.
Last fall, Point Loma began offering some of its 4,500 students money to pay for college in exchange for a percentage of their future earnings. The model, known as an income share agreement, requires colleges and students to take a chance on each other, a shared responsibility that attracted Point Loma.
"It sends a message to the student that we're in this with you," said George Latter, vice president of finance and administrative services at Point Loma. "And unlike a grant, you have the prospect of these funds coming back in and creating a revolving form of financing."