Universities backing students
With tuition on the rise, many universities are just following the trend, but not Purdue. They are leading the way in student affordability and using creative models to put there fees at risk.
Purdue is experimenting with an “income-share agreement” (ISA) which would allow students to pay back there tuition as a portion of future income. Example, if a student needed to borrow, they would get a loan in exchange for a percentage of their salary after they graduate for 100 months. It is another version of a loan, and may be hard for students to decipher what this actually means for them in the long term, but if the earnings are not what the school expects, the school loses out as well.
MissionU has also adopted a more direct version of the same model, where students do not pay any fees for school in return for 15% of the graduates over 3 years.
As tuition continued to raise, colleges will need to be more creative in attracting students that are questioning the value of a traditional program. Purdue is setting a clear example of what students are looking for and in a time when bootcamps and online programs are providing less expensive alternatives to lure learners. I look forward to seeing more colleges innovate to increase access and improve value for students.
For more information check out the full article in the Atlantic here.
Best,
Sergio Marrero
Co-Founder & CEO, Caila
