Famous among Freakonomics fans, Stephen Dubner once argued against life insurance for a simple reason- you’re betting dollars that you’ll die sooner, whereas the insurance companies win if you live a longer life. In effect, most of us have thrown down odds against our own survival.
Unfortunately, the Student Loan Industrial Complex is now betting against us in much the same way. While not as morbidly positioned against our own existence, it is certainly not aligned with our progression and development as a civilization of higher learning. Let’s look to see where their priorities may actually lie.
Here are some alarming facts:
$31,172– average student loan debt in US per person
$393– average monthly student loan payment
$1.52 Trillion– current US student loan debt
Trillions of dollars are regularly assured as earlier payment through debt restructuring and faux-refinancing schemes that never actually resolve anyone’s goal of shedding debt. Never before has the next generation in America (and indeed the world) been so burdened and without a clear plan towards resolution.
It’s important to note that a full 10% of student loan debt in the US is MORE THAN 90 DAYS PAST DUE. It’s become a cross to bear (thanks to a fiat of deep-pocketed lobbyists representing student loan companies) that can’t even be cast aside by a drastic measure such as bankruptcy. Therefore, student loan debt has reached a peak of unserviceable proportions.
While many think that a student loan allows the flexibility that the overextended higher education market portrays it to have, it is anything but flexible. The reality is that missing student loan payments can hold you back financially- just like missing credit card or car payments will. A student loan is considered delinquent DAY 1 after you miss a payment; if the delinquency lasts longer, the loan servicer will report it to the three major national credit bureaus, which will impact your credit score- potentially for years to come.
In comes the 21st century to a 19th-century problem- how and where do we properly incentivize success rather than enrollment?
What you might find both interesting and adjacent to “What the heck”, is Income Sharing Agreements were first proposed by Milton Friedman in 1955. One of the great minds of 20th century economics firmly believed that educational institutions should make an “equity investment” in “shares” of their earnings prospects.
Basically- YOU, as a student, are an investment in your future ability to earn (LOTS of) money!
And WE are, quite literally, banking on the singular goal of making sure you land a job that earns YOU (lots of) money
Incorporating ISA’s seems like a simple way to tie organizations like NexGenT to your progress as a student, right? Selfishly, we’re rewarded with higher completion rates and even more efficient placement rates. This allows us to better serve YOU (our students) and potential employers
***FULL DISCLOSURE- WE’RE IN THIS FOR YOU TO MAKE MONEY TOO!
So let’s break this down.
What exactly is an ISA?
An Income Sharing Agreement is a way for us to ensure the greatest success to you, while ensuring we’re able to collect tuition based only on our ability to properly educate AND help with job placement.
- So you come out of the Full Stack Network Engineering program making, say, $75,000 (pretty average starting point for a network engineer)
- You don’t pay a dime for tuition through the entire 6 month program– classes, live instruction, 1 on 1 mentoring, project experience, and job placement
- Once you start that job making $75,000, we take 10% of what you’re making monthly
- ***Spoiler alert- we know you can afford it, because it’s never more than 10% of what you make
- From there, you simply pay that percentage monthly until you reach the payment cap.
There you have it- you’ll never pay more than you can afford and we’re entwined with you for at least the next couple years to make sure you’re the most valuable Network Engineer around.
Not only is this a far more efficient method than assigning an arbitrary number to the assumed future value of your earnings (see FedLoan, SallieMae, or NelNet), this is a way to indelibly tie our incentives with your success. This is how NexGenT makes career outcomes more efficient. It isn’t about just finding you a job, but running the scoreboard up! We strive to help find you a job that is a true fit. As we say, the difference between a job and a career is trajectory. We’re focused on the latter.
Come join the NexGenT family and get into Network Engineering faster than you ever thought possible– all for $0 BEFORE YOU START MAKING MONEY.
Let’s get to work and get you into a Full Stack Engineering Role in a few months