Friday, August 30, 2013

Milton Friedman in Practice

A recent article on cnbc.com describes alternative ways to pay for college. But the one method that garnered my attention was an individual who used crowdsourcing to generate enough money to pay university tuition. The reason why it was interesting to me is because Milton Friedman, in Free to Choose, actually conjectured that this would be a feasible solution for paying your way through college without loans. His argument was that outside investors would contribute capital with the expectation that you would repay them a certain percentage of your salary for a fixed term. It was (ideally) a win-win situation in that you didn't have to defer purchasing a home or new car due to student loans, and the investors, if they used proper vetting, would have a reasonable rate of return.
I just thought it was really neat to see it in action, though I'm curious as to if this will result in a drop in humanities.

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