That's part of the risk. It will downsize annuity present/future values so as to reduce the windfall payout of bankruptcy vs its credit score and process costs. It will help keep college cheap: if what they teach is worthless then students should welch. The investor has more money, let him eat the friggin' risk! The student is otherwise forced to delay family for a decade and take a 67%+ cut in fertility rate as a result, a really bad outcome if we don't let students welch.
Maybe put the school on the hook in some way too, forcing it to actually screen for talent (which would absolutely murder DEI lol), that way investor isn't totally SOL if the school was the useless party.
Wow, I just made education affordable again by murdering any safety in financially speculating in it. Change the game, change the outcomes!
> It will help keep college cheap: if what they teach is worthless then students should welch.
Just the opposite, presumably the best colleges that product the highest earning graduates cost the most, those high earning graduates would be might more incentivized to start over than someone with a lesser degree because at least they'd be part of a high paying field and immune from needing to use credit.
>Maybe put the school on the hook in some way too, forcing it to actually screen for talent (which would absolutely murder DEI lol), that way investor isn't totally SOL if the school was the useless party.
You're so wrongheaded there, I don't even know how to get you on the right track, but companies, and schools, with so called diversity hires do better overall. Schools already screen for talent and the ability to graduate, DEI initiates just have them look a little harder in an expanded pool.