What if instead of paying your university or trade school tuition, you paid them shares of your future self in the form of “Income Sharing“? That’s what some schools have been toying around with:
“The Lambda School teaches information technology skills online, and it charges zero tuition and offers stipends to select students. The deal is that students pay back 17 percent of their income from the first two years of work, if earnings exceed $50,000 a year, with a maximum payment of $30,000. Students who don’t find jobs at that income level don’t pay anything. Students may also opt to pay $20,000 in tuition upfront and keep their future income.
There are reportedly about 1,300 students enrolled, and the company has raised almost $50 million. The early job placement record is impressive; 86 percent of graduates have jobs within 180 days of finishing the program, at a median starting salary of $60,000. It is too early to judge results — how would these students have fared without Lambda or in a less strong job market? — but this kind of effort is an economist’s dream come true.”
div data-position=”3″>Let’s say each of us was separated into 100 shares of theoretical stock. What would your stock be valued at certain times in your life? Would you be willing to sell a share or two or more at certain periods to help you pay for certain things at that time, or even use that money you got in return to purchase other shares of other people you believe will have higher value down the road?