If this form of college finance works it could be the impetus for an entirely new way to go about doing it. With already having investors, one could make the argument that the concept has already been proven. This is a sell-able investment plan. While yes, I ask for money for college and thus should have college paid for; I am ultimately incentivised to bring the cost of education down as much as possible via scholarships, work outside of school, thrifty living etc. The more of my education I am able to pay for myself, the less I have to pay out of pocket later on. But, with the way the plan is structured, my investors should make the same ultimate percentage return on their money.
While the argument exists that one should be equally as incentivised under the weight of a student loan, I don’t think that people necessarily are. It seems that a college education has become so much of a social imperative that we’re willing to take on any amount of debt to get us there. In fact if I’d had a cosigner for student loans, I probably would have walked away with $100,000 in debt. Instead, while potentially still borrowing $100k, the burden of “debt” is gone. My profits are unleveraged and my college will be financed by equity, or, if necessary, a combination of debt and equity.
My Education is a private equity deal. People own shares of my potential success.