4. Another way to pay
Agreements in which students pay a share of their income after they graduate and secure a job are being offered at some colleges and coding schools as alternatives to traditional student loans, Alison writes.
What's happening: The Trump administration has discussed experimenting with federal Income Share Agreements (ISAs), and legislation to develop a legal and regulatory framework for the agreements has been introduced in Congress.
- Austen Allred, whose Lambda School offers ISAs to students, told Axios this week between meetings on Capitol Hill that oversight is needed.
How it works: Rather than pay tuition up-front, students agree to pay a portion of their eventual income back to educators.
- ISAs are being offered in boot camps, a handful of colleges and universities — including Purdue, the University of Utah and Colorado Mountain College — and through workforce development programs.
Supporters say they provide financing for students without access to traditional loans or federal aid, and force accountability on higher education institutions to align students' skills with the job market.
But others worry that some students end up paying back substantially more money than they would with a regular loan, notes Axios' Felix Salmon.
- They're also concerned about the risk of discrimination, since some groups, including men, earn higher salaries out of college.
- And it is unclear whether ISAs are financially sustainable for offerers. Allred told Wired that Lambda is "burning through millions of dollars" a month.
Go deeper: For education today, betting your income tomorrow