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Monday, January 05, 2009

Human Capital Contracts: The Future of Higher Ed Funding?

National Center for Policy Analysis summarize the idea of "human capital contracts" to finance student's higher education costs. Essentially these contracts constitute agreeing to pay a set percentage of the recipients income (over a set number of years) in exchange for funds for higher education.  Given the inefficiency in how we currently finance higher education, it might be a good idea to look to a financing mechanism that invests in success.

The idea of human capital contract is also discussed in a recent article in The American and in a report by the Cato Institute.

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