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Income Share Agreements Have the Potential to Revolutionize College Financing

In 1955, economist Milton Friedman wrote his famous essay, “The Role of Government in Education.” This foundational essay offered great insights into the proper function of America’s education system. Among them, Friedman’s suggestion that college students could finance their education with the help of lenders who bear the up-front cost of a student’s tuition. These lenders would then be repaid by taking a percentage of the student’s future earnings. Friedman suggests that both lenders and students could benefit from this arrangement:

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