Solution to student debt? Pay no tuition upfront, but pay back part of your income later

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Cary Quad, a student residence hall on the campus of Purdue University in West Lafayette, Indiana. Spitzer Court is the open courtyard within the quad. Photo credit: Huw Williams/CC 2.0, via Wikimedia Commons

The average college student graduates with around $22,000 in debt. But what if you paid nothing up front, and then were required to pay the school back when you get a job? This idea has gotten backing from various venture capitalists. Purdue University is trying the approach along with an online learning startup called Lambda, which wants students to repay 17 percent of their income if they find a job earning at least $50,000/year.

Credits

Guest:
Andrew Ross Sorkin - columnist for New York Times; and founder and editor-at-large of DealBook, NYT’s online daily financial report

Host:
Madeleine Brand

Producers:
Sarah Sweeney, Michell Eloy, Amy Ta, Christian Bordal, Yael Even Or, Alexandra Sif Tryggvadottir, Caitlin Plummer