Marco Rubio’s Economic Plan Calls For Students To Sell Themselves To Private Investors

[applegrove]

Marco Rubio’s Economic Plan Calls For Students To Sell Themselves To Private Investors

by Alice Ollstein at Think Progress

http://thinkprogress.org/election/2015/07/07/3677543/marco-rubios-economic-plan-calls-students-sell-private-investors/

"SNIP...................



Lamenting the “shadow of debt hovering over millions of graduates,” Rubio then proposed a model already suggested by his rival Governor Chris Christie (R-NJ): allowing rich individuals or hedge funds to pay a students tuition and collect their investment back post-graduation.

“It may result in a profit for the investor or it may not – but unlike with loans, none of the risk lies with the student,” Rubio said.

He expanded on this idea in a speech last year:


Let’s say you are a student who needs $10,000 to pay for your last year of school. Instead of taking this money out in the form of a loan, you could apply for a “Student Investment Plan” from an approved and certified private investment group. In short, these investors would pay your $10,000 tuition in return for a percentage of your income for a set period of time after graduation – let’s say, for example, 4% a year for 10 years.

This group would look at factors such as your major, the institution you’re attending, your record in school – and use this to make a determination about the likelihood of you finding a good job and paying them back.



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[applegrove]

1. GOPers just can't stop trying to tie anybody doing anything to Wall Street.

[Guy Whitey Corngood]

2. Indentured servitude? Not exactly a new idea. nt

[applegrove]

3. The GOP sure do love making up ties that bind the people to the Wall Street. And they love to tear

apart any relationship between a student and government.

[FBaggins]

4. Not a bad idea... but it could be better

Have the schools settle for a percentage of your earnings. If their education isn't good enough to get a decent job... they won't make much.

[pnwmom]

11. Yeah, a great idea. Just like Indentured Servitude. nt

[FBaggins]

14. Not even a little bit like indentured servitude

OTOH... tens of thousands of dollars in debt that must be repaid regardless of whether you can ever get a decent job or not (and cannot be discharged even in bankruptcy for most people) is far more like it.

[NorthCarolinaL]

5. Hard to see anyone getting

locked in for 10 years after they graduate. You could be passed over for promotion, treated like crap, etc. Not to mention that staying at a job for 10 years for anybody is much less common.

On the other hand, companies already offer tuition assistance. You commit to staying with that employer for a short time after completing your program. The difference is the short time period.

The banks generally made their bed when offering these student loans. Now they are crying because they can't their money back. Lots of 18 year olds getting bamboozled by banker-politician shenanigans. I'd hate to be a college student these days.

[DonCoquixote]

6. This is NOT from the Onion?

Seriously, these people want slavery back one way or another...

[lpbk2713]

7. Rubio's vision of the new work force will be called "vassals"

Anyone who can't fulfill their obligation will be sent to debtor's prison.

Rubio speaks for the one percenters and wants to turn the clock back 200 years.

[Person 2713]

8. Just because he is a bought and sold stooge he thinks it should be every mans dream

[dsc]

9. Let's price this out

Say a person makes 50k a year for those 10 years, that is 500k. 4% of 500k is 20k. Doubling time for interest would mean that is a 7% annual return. I have my doubts that the average income of people in their first 10 years after graduating is 50k. You also have to borrow way more than 10k for a year of college.

[pnwmom]

10. That is, bring back Indentured Servitude.

[ibegurpard]

12. And this differs from a loan how?

Other than giving the lender even more control over the borrower than currently exists? Of course nothing here to address spiralling costs and wages that can't keep up with them...

[FBaggins]

15. You've got it backwards

This doesn't give the lender more control... it gives them less. If you can't ever get a job, they lose everything. The more valuable the education (i.e., the more money you make using it), the greater their return - but the reverse is true as well.

With the current system, the less valuable the education... the higher the proportion of income that must go to paying it back.


Of course nothing here to address spiralling costs and wages that can't keep up with them...

Just the opposite. The price tag on that education is now irrelevant. Because the amount you pay for it is directly controlled by the income that it produces. Wages will always keep up with the price of the education because the price of the education is tied the wages themselves.

[HughBeaumont]

13. Reaffirming the notion that, yes, kids, Colleges ARE nothing more than corporate farm clubs.

Not a single penny will be allocated to anything but STEM and finance, whether or not the job markets for those fields are fruitful upon graduating. The track record isn't stellar.

GOD this idea is stupid.