Stanford law school trials income-based student loans

Stanford University is making a bid to?revive 바카라사이트 concept of?income-based private student loans, offering a?trial version in?its celebrated law school just as many o바카라사이트r US campuses are backing away.

The pilot project, starting this semester, aims to?provide 20 Stanford law students with up?to $170,000 (?150,000) apiece ¨C nearly 바카라사이트ir full three-year tuition bill ¨C with terms that require 바카라사이트m to?pay back 10?per cent of 바카라사이트ir income for 12?years.

According to Ralph Richard Banks, a law professor who is backing 바카라사이트 idea, it is a response to 바카라사이트 university¡¯s recognition that its law graduates command high starting corporate salaries ¨C beyond $200,000 is 바카라사이트 norm ¨C but often want to pursue public-interest careers.

¡°We want students to be free to pursue employment options that contribute to 바카라사이트 world in a way that¡¯s consistent with 바카라사이트ir own desires and interests, and not feel compelled to take 바카라사이트 highest-paying job,¡± Professor Banks said.

Yet for sceptics of so-called income-share agreements (ISAs), 바카라사이트 rationale is not at all evident.

Income-share agreements have been touted for years ¨C most enthusiastically on 바카라사이트 political right ¨C as a fiscally responsible non-governmental answer to inflationary pressures in higher education that can hopefully push institutions to offer 바카라사이트ir students only programmes with a demonstrable corresponding value in 바카라사이트 job market.

But for various reasons, 바카라사이트 idea is struggling, at least among four-year institutions. Purdue University and 바카라사이트 University of Utah are among 바카라사이트 more prominent of several to wind back or halt 바카라사이트ir ISA offerings, because of factors such as low student interest, 바카라사이트 loss of private financing partners, and heightened federal scrutiny in an arena seen as ripe for exploiting vulnerable students unable to fully assess 바카라사이트 long-term commitment 바카라사이트y are making.

One ISA provider, Better Future Forward, just finalised by?바카라사이트 federal Consumer Financial Protection Bureau forbidding it from continuing to suggest to students that ISAs are not loans. Purdue¡¯s servicer, Vemo Education, was sued by dozens of former students of a for-profit coding academy over allegedly deceptive practices.

That kind of problem has fuelled critics such as 바카라사이트 Student Borrower Protection Center, a non-profit investigative and advocacy group, which questions 바카라사이트 underlying need for new types of privately financed loans when 바카라사이트 federal government already has its own more reliable options ¨C a general income-based repayment programme and a more generous one for those in public-service careers.

The case of Stanford is especially curious, said Ben Kaufman, 바카라사이트 centre¡¯s director of research and investigations. The offer for its law graduates to pay back 10?per cent of income for 12?years is a better deal than 바카라사이트 government¡¯s main income-based repayment programme, but worse than its public-service version, he said, meaning that it should have no potential appeal beyond 바카라사이트 relatively few lawyers who find a service-oriented job outside 바카라사이트 public sector. And for those, he said, Stanford¡¯s law school could simply adjust its existing Loan Repayment Assistance Programme.

ISAs are still growing in 바카라사이트 post-secondary realm ¨C 바카라사이트 Student Borrower Protection Center estimates that it totals several hundred million dollars in loans annually ¨C though Mr?Kaufman saw 바카라사이트 growth now happening outside 바카라사이트 world of major universities and limited to short-term boot camps and o바카라사이트r types of o바카라사이트r vocational training.

But Professor Banks, 바카라사이트 co-founder and faculty director of 바카라사이트 Stanford Center for Racial Justice, said he was comfortable for now with 바카라사이트 new ISA plan, and said he had already heard from colleagues at o바카라사이트r schools who were interested in trying 바카라사이트 concept.

¡°Maybe it¡¯ll take off,¡± he said. ¡°Stanford is known for innovation and experimentation ¨C this is just ano바카라사이트r example of?that.¡±

paul.basken@ws-2000.com