Student Loan Fallacies—and Fixes
Beth Akers joins John Stossel to discuss the purported crisis over student loans and new approaches to the financing of higher education.
Democratic presidential hopefuls, including Senators Bernie Sanders and Elizabeth Warren, have promised to spend trillions of dollars to bail out young people struggling with student-loan debt. But Akers’s research shows that 66 percent of millennials have no student debt, while a substantial portion of others have modest burdens in proportion to their incomes. And federal programs already exist to help those with truly unaffordable debt.
Instead of student loans, Akers and others suggest a new approach to paying for higher education that takes debt entirely out of the equation: income-share agreements. With ISAs, students pay an affordable share of their income directly (if they find a job) rather than navigate an obscure system of loans and repayment plans.
Learn more about income-share agreements and other alternatives to traditional higher-education financing.
This video is part of a special collaboration with John Stossel and City Journal contributors.
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