DealBook Briefing: A Model to Alleviate Student Debt Gains Traction [The New York Times]
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Source: The New York Times
DealBook Business and Policy DealBook | DealBook Briefing: A Model to Alleviate Student Debt Gains Traction DealBook Business and Policy Supported by Jan. 8, Good Tuesday morning. (Was this email forwarded to you? Sign up here .) Could venture capitalists make student debt obsolete? Silicon Valley is captivated by a new concept that could eliminate student debt, Andrew writes in his column Students were saddled with $1.5 trillion in debt last year, a record high. An idea called Income Share Agreements has been talked about for years as a way to alleviate that burden. Under this system, tuition is free, but students agree to pay back a percentage of their income for several years if they get good after graduation. Lambda School, an online learning start-up founded in 2017 with the backing of Y Combinator, has $30 million in funding today from venture capitalists to make the concept a reality. Andrew writes: The investments will be used to turn Lambda, which has focused on subjects li
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