Some participants with experience with higher education saw great potential for this type of guarantee to benefit the lives payday loans London OH of students more generally. Some participants in Groups 2 and 3 thought that the guaranteed income in the Adrian College example (of $37,000 or more) was unreasonably low, though not all participants who expressed this opinion were uninterested in the program.

As with the job guarantees, some participants in every group viewed a loan repayment guarantee based on postgraduation income as a way of easing fears about continuing their education

We described ISAs to all participants as programs in which students start making monthly payments after graduation that are set as a fixed percentage of their income, rather than a flat amount based on the total they borrowed. Their payment amount will fluctuate with their income, and they will continue to make payments that way for a predetermined number of years.

We also told students in Group 1 that because the amount they pay is a percentage of their income, students who find high-paying jobs will end up paying back more than students who have lower-paying jobs. Participants in Groups 2 and 3 instead received a concrete example of such a guarantee from Purdue University, in which students meeting certain criteria could get $10,000 to help pay tuition. Continue reading