Journal Article

Capital for Communities: Financing Human Capital Through Income Share Agreements

Abstract: Outstanding federal student loan balances in the U.S. exceed $1.2 trillion, and many believe rising student loan delinquencies represent an emerging crisis for students and the broader economy. Income share agreements (ISAs) have been identified as a new potential source for financing higher education, making important investments in human capital improvements while limiting some of the debt burden placed on students. This article will explore why some believe that alternatives to traditional student loans are needed and will also examine the promising solutions ISAs could bring to students and the economy as well as explore their potential challenges.

Keywords: human capital improvements; student loans; higher education; loan delinquencies;

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Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Cascade

Publication Date: 2016-07

Volume: 3

Order Number: 92