Deferred tuition coding bootcamp model should be a textbook example of moral hazard/adverse selection.
You’re assuming they come from equivalent economic circumstances
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You have two students of equivalent skill. One has been working in an Amazon warehouse making $11/hr. The other working in SAAS sales making $90k/yr. Former on deferred tuition, latter pays cash. A jr eng role comes along for $80k/yr. Who is more likely to take it?
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I don’t see exactly the point of this example. I think the right perspective is to focus on an arbitrary (but fixed) profile and consider how one’s incentives are affected by a given set of terms.
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Ok, look at it from the perspective of a brilliant student who is making $11/hr. You want to go to school to become a software engineer. Pay upfront? Impossible. Loans? Too risky (risk 100% of annual salary?) Income share agreement? Doable
End of conversation
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The chance that someone who graduated from a top research university paid their own way is incredibly small, if you look at the stats for parental income for said schools. On the other hand, bootcamps etc are much more likely to come out of someone's pocket.
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