Editor's note: The following is based on John Stossel’s latest video collaboration with City Journal, featuring Beth Akers and others on student loans and new approaches to the financing of higher education.
Student loan debt keeps growing.
There is a better solution than the ones politicians offer, which stick the taxpayer or the loan lenders with the whole bill.
It's called an "income share agreement."
Investors give money to a college, and the college then gives a free or partially free education to some students. When those students graduate, they pay the college a certain percentage of their future income.
It's a way "for the school to say to students, 'You're only going to pay us if we help you succeed'," explains Beth Akers, co-author of the book "Game of Loans."
John Stossel is an award-winning television reporter known for his career on both ABC News and Fox Business Channel. He is the author most-recently of "No They Can't! Why Government Fails -- But Individuals Succeed."
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