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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMarco Rubio’s Economic Plan Calls For Students To Sell Themselves To Private Investors
Marco Rubios Economic Plan Calls For Students To Sell Themselves To Private Investorsby Alice Ollstein at Think Progress
http://thinkprogress.org/election/2015/07/07/3677543/marco-rubios-economic-plan-calls-students-sell-private-investors/
"SNIP...................
Lamenting the shadow of debt hovering over millions of graduates, Rubio then proposed a model already suggested by his rival Governor Chris Christie (R-NJ): allowing rich individuals or hedge funds to pay a students tuition and collect their investment back post-graduation.
It may result in a profit for the investor or it may not but unlike with loans, none of the risk lies with the student, Rubio said.
He expanded on this idea in a speech last year:
Lets say you are a student who needs $10,000 to pay for your last year of school. Instead of taking this money out in the form of a loan, you could apply for a Student Investment Plan from an approved and certified private investment group. In short, these investors would pay your $10,000 tuition in return for a percentage of your income for a set period of time after graduation lets say, for example, 4% a year for 10 years.
This group would look at factors such as your major, the institution youre attending, your record in school and use this to make a determination about the likelihood of you finding a good job and paying them back.
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applegrove
(118,865 posts)Guy Whitey Corngood
(26,507 posts)applegrove
(118,865 posts)apart any relationship between a student and government.
FBaggins
(26,778 posts)Have the schools settle for a percentage of your earnings. If their education isn't good enough to get a decent job... they won't make much.
pnwmom
(109,020 posts)FBaggins
(26,778 posts)OTOH... tens of thousands of dollars in debt that must be repaid regardless of whether you can ever get a decent job or not (and cannot be discharged even in bankruptcy for most people) is far more like it.
NorthCarolinaL
(51 posts)locked in for 10 years after they graduate. You could be passed over for promotion, treated like crap, etc. Not to mention that staying at a job for 10 years for anybody is much less common.
On the other hand, companies already offer tuition assistance. You commit to staying with that employer for a short time after completing your program. The difference is the short time period.
The banks generally made their bed when offering these student loans. Now they are crying because they can't their money back. Lots of 18 year olds getting bamboozled by banker-politician shenanigans. I'd hate to be a college student these days.
DonCoquixote
(13,616 posts)Seriously, these people want slavery back one way or another...
lpbk2713
(42,770 posts)Anyone who can't fulfill their obligation will be sent to debtor's prison.
Rubio speaks for the one percenters and wants to turn the clock back 200 years.
Person 2713
(3,263 posts)dsc
(52,172 posts)Say a person makes 50k a year for those 10 years, that is 500k. 4% of 500k is 20k. Doubling time for interest would mean that is a 7% annual return. I have my doubts that the average income of people in their first 10 years after graduating is 50k. You also have to borrow way more than 10k for a year of college.
pnwmom
(109,020 posts)ibegurpard
(16,685 posts)Other than giving the lender even more control over the borrower than currently exists? Of course nothing here to address spiralling costs and wages that can't keep up with them...
FBaggins
(26,778 posts)This doesn't give the lender more control... it gives them less. If you can't ever get a job, they lose everything. The more valuable the education (i.e., the more money you make using it), the greater their return - but the reverse is true as well.
With the current system, the less valuable the education... the higher the proportion of income that must go to paying it back.
Of course nothing here to address spiralling costs and wages that can't keep up with them...
Just the opposite. The price tag on that education is now irrelevant. Because the amount you pay for it is directly controlled by the income that it produces. Wages will always keep up with the price of the education because the price of the education is tied the wages themselves.
HughBeaumont
(24,461 posts)Not a single penny will be allocated to anything but STEM and finance, whether or not the job markets for those fields are fruitful upon graduating. The track record isn't stellar.
GOD this idea is stupid.