“The best way to fix this inefficiency is to address the root of the problem: Most bright students do not have any collateral and cannot easily pledge their future income…. Investors could finance students’ education with equity rather than debt. In exchange for their capital, the investors would receive a fraction of a student’s future income — or, even better, a fraction of the increase in her income that derives from college attendance. …”
U.S. taxpayers spend $43 billion a year subsidizing college education, but is there a better way to make sure underprivileged kids can go to college? University of Chicago business professor, Luigi Zingalas, thinks so.