Posts published on June 4, 2012

Income Contingent College Student Loans Are Worth Serious Consideration

University of Virginia Professor David W. Breneman to has a new new book, Financing American Higher Education in the Era of Globalization (Harvard Education Press).

Questions around higher education accountability surfaced throughout the discussion: Who plays a role? Should it fall to the states, or to the federal government? Breneman believes both play a role, and he emphasized that universities must have “skin in the game” as well. He also talked about the need for fresh ideas in reforming higher education finance and added that one of the most promising new “old” ideas to come about recently is the notion of “income contingent loans,” an idea Education Sector outlines in Affordable at Last: A New Student Loan System. Under this system, students pay back loans based on each individual’s earnings. “The key is making it automated through the IRS,” said Breneman. Source: Education Sector