Universities work up new scheme to ‘free’ students from debt

Modern academia is anachronistic, if nothing else.

The latest trend that appears to be catching on is termed “income-share agreements.”

Schools such as Purdue University, Norwich University and Lackawanna College are offering to pay students’ tuition if students offer them a percentage of their future salary for a fixed number of years, according to an Associated Press report.

In contrast with traditional loans, in which students simply pay down the principal and interest until there is nothing left, students with income-share agreements pay back a percentage of their salary for a set period of time.

Uh, isn’t this just another name for “sharecropping?”

Perhaps universities ought to put a halt to the ongoing building spree which so many are currently engaged in – constructing fiefdoms that would make many a medieval lord envious – and get back to the business of simply educating students.

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17 thoughts on “Universities work up new scheme to ‘free’ students from debt

  1. Funnily enough ‘sharecropping’ was what occurred to me as i read the first paragraphs…and then you said it!
    I’m not sure that the universities are still in the education business anymore….more like loan sharking.

  2. Back in the early 20th century colleges and universities had a president, a dean and faculty. Now layers of administration are needed, and every school has a “center” for this or that. It’ s bloat, and alumni contributions are falling at many a school.

  3. Cotton Boll,
    I have to wonder if modern colleges are worth the money or degree. If they can’t pay their own way, what are they teaching the students? Even state universities, which used to be affordable, aren’t. Seems the colleges could do some major cost cutting, including getting rid of tenure, administration, the fancy, slick, self-promoting mailings that I still get from my deceased father’s university. The building programs, and on and on.

    They could restructure curricula to allow for six-year work-study programs. And what form would “income-sharing” take if one student makes lots of money, another works as a McDonalds cashier, and a third can’t find any job (or doesn’t want one)? Sounds like a bureaucratic nightmare, to me, and would raise costs even more.

    • I agree; when I see the dorms and college buildings that are being built on major colleges today, I suddenly understand why tuition has gone up every year for the past quarter century.

      My first year in college, which, to be fair, was more than 30 years ago, cost $343 in tuition for five courses. Today, there are classes where the books alone for a single course cost more than that. Something is askew.

  4. I think they should stop overcharging students for degrees that don’t have job openings to support them. They are adding unreasonable debt to young people and then giving them an education that can’t get them competitive jobs. The interest alone is beyond belief that these kids have to pay.

    It’s a crime and nobody wants to do anything to stop it.

    If we fix that we won’t need to come up with creative ways for them to pay back the overpriced loans.

    • It’s difficult to determine who’s going to make it which field. For every four people who don’t make it with a theatre degree, the fifth person might break even and one in 20 might make a very living. One could argue that philosophy degrees don’t have much job potential, but they definitely benefit the individual who takes the time to go through that sort of rigorous program. There are plenty of business majors who don’t make it in business, as well.

      The problem, as I see it, is universities in many areas, have gotten away from simply educating students and have moved into becoming kingdoms, with large salaries for top administrators, foundations set up to bring in millions of dollars from alumni and an emphasis on big time sports. I understand that this is not the case at all schools by a longshot, but college tuition is beginning to price many students out of post-secondary education.

  5. If you really want to help them pay off their student loans, give them a .38 & a map covering the locations of 7-Elevens.

  6. Mr CBC,

    You are slowing down.I’m afraid we could lose your voice on the issues of the day, and, by the way, how is the cotton crop looking this year?

    • Hey Rob, I apologize for the delay in responding. The cotton crop is looking OK in my neck of the woods, although it’s hard to say how Hurricane/Tropical Storm Florence is going to affect it. Over the past two weeks I had just begun noticing bolls starting to burst forth with fluffy white cotton, so we’ll see what all this rain means. And my recent slowdown is temporary, I hope. A bit of laziness on my part. Thanks for your note.

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