OPINION — Each year, our higher education system confers roughly two million bachelor’s degrees. Unfortunately, it also produces one million student loan defaults. This isn’t simply “two steps forward, one step back.” This is a system-wide failure that, while creating immeasurable value for some, is financially crippling many others along the way. We need college to generate more value for more students.
Some on Capitol Hill are vying for free college. While aspirational, such calls are unlikely to succeed in today’s political environment, and don’t address the broken business model of traditional higher education in the first place. Instead, Congress needs to address not just how much students pay for college, but also “how” they pay. Income share agreements, or ISAs, are an option worth considering.