Prompt Cast
College student uses income share agreement to pay for education
TLDR College student Lauren Newworth used an income share agreement to finance her education at Purdue University, but is now facing higher monthly payments than if she had taken out a traditional student loan, leading her to question her decision.
Timestamped Summary
00:00
College student Lauren Newworth used an income share agreement to pay for her education at Purdue University instead of joining the army due to financial constraints.
03:30
Selling stock in yourself, or income share agreements, is a new way for college students to finance their education based on the concept of pledging future earnings, similar to what David Bowie did in 1997.
07:18
Income share agreements allow students to receive funding for college without taking out traditional loans, instead giving investors a share of their future earnings.
10:52
Purdue University was the first major four-year university in the US to implement income share agreements as a way to help students fund their education.
14:24
Purdue University's income share agreements program adjusts the percentage of income students have to pay back based on their major, aiming for all participants to ultimately pay back the same amount.
17:33
Students who participate in Purdue University's income share agreements program are on the hook to pay back a percentage of their income for eight years after graduation, with the contract pausing if they are not seeking employment.
21:01
Lauren graduated in 2020 and found a job in the food industry in Illinois, working with corn products for companies like Frito-Lay and General Mills.
24:23
Lauren is realizing that her income share agreement with Purdue, although initially appealing, is now resulting in higher monthly payments than if she had taken out a traditional student loan, making her question her decision.
