Investing in students’ futures

This is a short video about a new program at a university in the U.S. (Purdue, in Indiana) that aims to shift the risk of student loan debt from the student to the university. Basically, the students promise to pay the university a small percentage of their future income after graduation instead of having student loans — with interest rates — that burden them regardless of what happens after graduation.

On the PBS site, the video has a written transcript below it, and the subtitles are correct if you need them to help your listening comprehension.

Some related statistics (from this site):

  • There’s $1.45 trillion in student debt in the US right now.
  • The average amount a student has to repay in total is $37,000 (which is 6% more than it was last year).
  • The average amount a student has to repay per month is $351.
  • Interest rates on paying back student loans range from about 2.7% to 8.2%.

There are many issues to debate with a program like Purdue’s, but as someone who finally paid off her student loans — with interest rates at about 4 or 5% —  for undergraduate and graduate school in her 30s, I wish I’d at least had this option.

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