Quote:This is a free market idea I could get behind. I worry though, that without laws in place or the like it would lead to forms of indentured servitude as that seems a likely progression for investment firms looking for further gains

 

Some thoughts (not attacks, just thoughts):

 

 

It also doesn't really seem (to me) to work out any better than a student loan.  Assuming someone gets a job right out of school at $40,000/ yr.  Using Rubio's example of 4% of salary for 10 years (and assuming no raises) that ends up coming to $1600 a year or $16,000 over ten years.  Assuming interest isn't being compounded, that is a 6% rate (which is actually 3x higher than my current rate.)  

 

I don't know if he expounds on his ideas (I haven't read his book) but it seems like the only advantage would be that if you don't find a job you don't pay as much back which means the key component of risk is assumed by the company.  Sounds like a typical student loan to me.  

 

Also, what happens if you have a private company paying for your, say, business degree and you decide to change majors?  Are you allowed to or do you then need to pay back the amount they lent?  Is the amount based on your salary while you pursue your new degree?

 

Lastly, am I the only one who thinks it wouldn't take long for the companies who make these investments to start pushing for legislation that protects them if a student defaults?  

 

SIDE NOTE:  To be open and honest in this discussion, I have 2 degrees, one that many would suggest is a practical degree (Business) and one that would be considered a wasted degree (History.)  

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