Sources
Loading...
Additional media
Loading...
DeepNewz, mobile.
People-sourced. AI-powered. Unbiased News.
A new working paper by NBER and Philadelphia Fed explores the impact of income insurance on student loan participation and adverse selection in income-sharing agreements. The study, coauthored by researchers including Mike Kofoed and Jon Hartley, highlights the importance of loan terms in student decision-making. It also delves into the first randomized controlled trial on income share agreements, tracing back to Milton Friedman's ideas on government's role in education.
Our new study is also the first RCT involving income share agreements, an idea which goes back to Friedman’s 1955 essay “The Role of Government in Education”. Recently various universities like Purdue have offered them. Income Driven Repayment in federal student debt a hybrid mix https://t.co/wfQ52QhL2y
Emphasizing income insurance increased participation in income-sharing agreements. Students' responsiveness to loan terms suggests adverse selection, from Balakrishnan, Bettinger, @mikekofoed, @DubravkaRitter, @dougwebberecon, Aksu, and @Jon_Hartley_ https://t.co/Ece5hDXLic https://t.co/vfUws48yR0
Ed and coauthors are excellent, important read here. 👇🏻 https://t.co/tH9eULuCX2