As you most likely know, there is currently a significant problem with educational debt in the United States. The numbers are tremendous – student loan debt totals more than $1.3 trillion dollars. What’s even worse is that the numbers don’t show any tendency of slowing down, and have actually grown by 8 percent this year.

The future of young people is endangered and society as a whole suffers. When we have a group of people who come out of college with staggering debt, every other category suffers too; they can’t form new businesses to fuel the economy, getting married and having children is increasingly difficult, and home ownership is just a dream for many.

Over 43 million people are struggling with student loans, and the debts average around $27,000. Most of it is toward the federal government, although there are several private lending companies as well. These sums cannot be discharged even by filling bankruptcy and present a heavy burden on the backs of a huge number of young people.

Various solutions were proposed in many different institutions and some are better than others. Income-share agreements present one of the better ones. They propose that a student should pay a pre-determined percentage of earnings to investors for several years after graduation. It is a highly valuable addition to the government loan programs, as it would decrease the amount of student debts across the country. For lower income families, it is quite possibly the only way to send their children to college.

Income-share agreements are most beneficial to students themselves. It promises to provide them with a way to go through college without being crippled by debt afterwards, as the percentage of income they need to pay remains the same. Specifics vary from provider to provider and the time frame is usually anywhere from 5 to 15 years, with the percentage of income varying from 10 to 15 percent.

The crucial thing to consider here is the lack of risk for students.  If their job income turns out to be relatively low, investors will suffer the consequences. Students will not be trapped with a massive debt and no way to pay them off. In an ideal situation, the market for income-share agreements will develop, not only offering a better way to financially endure college, but also serving as a measurement of which fields are most sought after financially.

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Experts from all over the country agree that income-share agreements provide the best possible benefits for students looking for financial aid. They agree that it should at least have a place in the market of high education services. Because it presents the students with the possibility of studying without the threat of graduating to a colossal debt, many experts predict that it will soon replace loan programs entirely.

Purdue Research Foundation is one of many educational institutions that are currently looking for a partner for their income-share assistance program.  It is their desire to provide students with ways of studying without a burden of a loan, as well as making connections with future employers. In order to do so, they will need a partner with a knack for business, immense administrative capabilities, and impeccable protection for all students who would participate in the program.

Students who graduate from Purdue regularly gain employment at companies who pay lucrative salaries. They offer diplomas in 11 out of 12 top earning disciplines and their students regularly get hired by high level employers. That means that investors who support Purdue income-share agreement programs may gain significant profit from students they sign the agreement with.

Though Purdue is a college that prides itself on having four years of zero tuition increases and reductions to board and textbook costs, it is still a big expense for many students. Since they strive toward enabling all qualified, talented youth to attend college, they are enthusiastic toward the possibility of adding income-sharing agreement to their catalogue of financial assistance.

The student debt program ran into huge problems a long time ago. Many people propose unwise solutions in order to fix it, such as the idea of handing out even more public funds. This would merely prolong the problem and put an even larger amount of people into debt, and make the debt itself larger.  A new approach is a much needed one, where young people will be able to construct their own careers and pay off their college by working after graduation.