투자회사가 대학생에게 학자금을 주고 그학생의 미래 수입을 증권으로 취득한다. 그 대학생이 취업한 후 발생하는 급여에서 일정 몫(stake)을 직접 받는데, 그 학생(피투자자)가 실업일때는 못받게된다.
미국 Purdue University에서 학부생을 대상으로 진행되고 있다는데, 보험의 원리가 흠뻑 스며들어가 있다. 결국 실업률이라는 통계가 보험의 사망률을 대신하는 것 같은데, 영어 전공자에게는 취업후 매월 급여의 4.52%를 약10년(116개월) 동안 회수하는 조건으로 1만달러(약1140만원)을 투자한다. 한편, 취업률이 높은 컴공과 전공자에게는 훨씬 좋은 조건인 2.6% 88개월이다.
College Grads Sell Stakes in Themselves to Wall Street
Instead of taking out loans, students can agree to hand over part of their future earnings in return for investment.
By
Claire Boston
2019년 4월 9일 오후 6:00
Amy Wroblewski
Photographer: Maura Friedman for Bloomberg Businessweek
To pay for college, Amy Wroblewski sold a piece of her future. Every month, for eight-and-a-half years, she must turn over a set percentage of her salary to investors. Today, about a year after graduation, Wroblewski makes $50,000 a year as a higher education recruiter in Winchester, Va. So the cut comes to $279 a month, less than her car payment.
If the 23-year-old becomes a star in her field, she could pay twice as much. If she loses her job, she won’t have to pay anything, and investors will be out of luck until she finds work.
Wroblewski struck this unusual deal as an undergraduate at public Purdue University in West Lafayette, Ind. To fund part of the cost of her degree in strategy and organizational management, she sidestepped the common source of money, a student loan. Instead, she agreed to hand over part of her future earnings through a new kind of financial instrument called an income-sharing agreement, or ISA. In a sense, financiers are transforming student debtors into stock investments, with much of the same risk and, ideally, return.
In Wall Street terms, Wroblewski, a first-generation college student, is more small-company stock than Microsoft. Her mother works as a waitress; her father, as a quality control inspector in a car dealership’s body shop. With a strong work ethic, Wroblewski always held down at least two part-time jobs in school, working as a Purdue teaching assistant, a Target cashier, and an Amazon seasonal worker. Showing potential for leadership—not to mention earnings—she rose to vice president of Delta Sigma Pi, a business fraternity.
Those qualities impressed a company called Vemo Education, which vets students at Purdue and a handful of other schools on behalf of potential investors. More important, perhaps, Wroblewski believes in herself and her ability to make good on the contract. “Even with all my other loans, I knew I could make it work,” says Wroblewski.
Americans owe $1.5 trillion in higher education debt, a burden that weighs down their dreams and the U.S. economy. The Federal Reserve says millennials are now less likely to buy homes than young people were in 2005, and even senior citizens find themselves still making payments on their student loans. Wall Street sees the crisis as an opportunity. College graduates on average earn $1 million more over their lifetimes. Investors could capture some of that wage premium for themselves..
Total Student Loan Debt Outstanding
Data: Federal Reserve Bank of New York
“I envision a whole new equity market for higher education in the next five years where today there’s only debt,” says Chuck Trafton, who runs hedge fund FlowPoint Capital Partners LP, which has invested in ISAs, including Purdue’s. ISA experts say they have fielded calls from some of the world's largest investment managers that are considering investing in the contracts. And Tony James, executive vice chairman of money manager Blackstone Group LP, formed the Education Finance Institute to help schools study and develop ISAs.
For now, the market for income-sharing agreements can be measured in the tens of millions, a tiny sum compared with the $170 billion in outstanding asset-backed securities created from student loans. Only some schools let outside investment firms buy a stake in students. Others seek out individual donors, mostly wealthy alumni, or use money from their own endowments.
Along with Purdue, which started its program in 2016, some smaller private schools such as Lackawanna College in Scranton, Pa., and Norwich University in Vermont are offering ISAs. The University of Utah recently announced a pilot plan.
ISAs raise all kinds of questions. How many students will lose their jobs and be unable to pay? How much should Wall Street demand as compensation for the risk? Investors typically ask for a smaller slice from students with more lucrative majors. At Purdue, for example, English majors borrowing $10,000 pay 4.52 percent of their future income over nearly 10 years; chemical engineers, 2.57 percent in a bit over seven years.
Major Decision
Estimated payment schedule for a $10,000 income-share agreement made through Purdue University in a student’s senior year, by major
Data: Purdue University, Vemo Education
Purdue set up its program to be competitive with many student loans for the typical borrower. Consider a junior economics major who needs $10,000. Through a private loan, she’d likely pay $146 a month, or $17,576 over the course of 10 years. Through an ISA, a student with a starting salary of $47,000, Purdue’s estimate for its 2020 economics graduates, would pay $15,673, assuming 3.8 percent annual salary increases. That would be a good deal. But, if she found a $60,000-a-year job, she’d have to fork over $20,010.
Financial firms and for-profit colleges have been known to prey on college students’ financial naiveté to sell them high-priced private student loans, rather than steer them toward more favorable government-backed ones. While schools offering ISAs say they will offer them only after government loans with the most favorable terms are exhausted, some students may end up again with regrets.
“There’s a level of enthusiasm that’s overstated,” says Julie Margetta Morgan, a fellow who studies higher education at the Roosevelt Institute, a think tank focused on reducing income inequality. “It’s pretty darn near impossible to say whether an ISA is better or worse for an individual.” Morgan dislikes that ISAs require arbitration, which means students give up their right to sue in court.
The last big ISA experiment—at Yale University in the 1970s—ended up as a cautionary tale. Yale pooled all borrowers, and they owed the school a percentage of their incomes for 35 years, or until everyone paid back what they owed. The idea was that graduates who ended up with high-paying jobs in finance would subsidize those who chose public service.
But many students defaulted, leaving the remaining borrowers on the hook longer than they’d anticipated. Other wealthier students exited the pools via large one-time buyout payments. The remaining students tended to be lower-income. Some stopped paying altogether. Yale ultimately bailed out the borrowers, winding down the whole program in 2001.
Juan Leon, who sells business jets for Dassault Aviation SA, graduated from Yale in 1974 with a degree in urban studies. He borrowed $1,500 through the college’s “Tuition Postponement Option.” By the late 1990s, he’d paid back $8,000. “We didn’t read the fine print,” Leon says. “It was quite, quite onerous.”
Students have more protection under newer plans. Purdue, for example, caps total payments at 2.5 times what a student borrowed, so the most successful don’t feel gouged. And students making less than $20,000 a year won’t be charged at all, as long as they are working full time or seeking work. Those who are working part time or not seeking work will only have their payments deferred, which means that they’ll owe for a longer period of time.
Purdue has arranged more than 700 contracts worth $9.5 million and closed two investment funds totaling $17 million. David Cooper, Purdue’s chief investment officer, helped to develop the program and pitch it to investors after almost a decade of overseeing investments for Indiana’s retirement system. He says the funds are drawing more interest now that the oldest contracts have over 20 months of repayment data. “We feel like we’ve got the pricing for the students at a pretty good spot,” Cooper says. “At the same time, it’s a reasonable return for the investors.”
Purdue’s early funds attracted investments from wealthy individuals, as well as nonprofit Strada Education Network and INvestEd, a nonprofit lender and financial literacy organization in Indiana. Cooper says ISAs may make most sense for socially conscious investors, but he points out that even funds seeking lofty profits might one day be interested if they can juice returns with leverage.
Charlotte Hebert, 23, who graduated from Purdue in 2017, has mixed feelings about the $27,000 she took out from an ISA to pay for her senior-year costs. A professional writing major, she’s required to shell out 10 percent of her income for the term of the deal. That’s about 2.5 percentage points more than an engineer would pay. The daughter of a teacher and a nurse, she makes about $38,000 a year as a technical writer for an engineering firm in Lafayette, Ind.
She pays investors $312 a month. “I don’t think it’s the perfect solution,” Hebert says. “I am of the opinion that in a society where most of its workers need a college education, nobody should be paying this much to be what is considered a functional member of society.”
캐나다의 자동차보험료는 지역별 차등제를 적용하고 있습니다. 자기의 운전중 사고이력이나 운전행태와 상관없이 자기가 거주하고 있는 지역의 상태가 어떤지 그리고 자기주변에 어떤 자동차 사고이력을 가진 이웃과 거주하느냐에 따라 보험료가 바뀌는 거죠.
캐나다의 운전자 Steven Baker 씨는 Ossington Avenue 에서 도로폭이 비슷한 약 4km 북쪽 St. Clair Avenue 로 이사하는 통에 자동차보험의 연간보험료가 1,950달러(약162만원)에서 2,560달러(213만원)로 30.8%가 상승했다고 합니다.
보험가격을 산출하는 과학자이고 전문가인 보험계리사(actuary)는 통계자료를 바탕으로 어느 지역에서 자동차사고가 가장 많이 발생하는지를 기초로 보험료를 결정합니다. 과거에 많이 났으니 미래에도 유사하리라고 생각하는 거죠. 지역적으로 가까울지라도 교차로의 갯수, 교통표지판, 운전 제한속도 등이 환경이 다른 것도 가격차이을 만듭니다.
Man's car insurance shoots up $600 per year after he moves to new neighbourhood
A few days after moving, Steven Baker phoned his insurance company to inform them that his address in Toronto had changed. Then he was told his car insurance would shoot up by about $600 a year — just because of his new neighbourhood.
Despite Toronto man's clean driving record, a new postal code causes his premium to spike
Natalie Nanowski · CBC ·
What you pay in car insurance rates can have more to do with the traffic, speed and accident history in your neighbourhood than your driving history. (Craig Chivers/CBC)
A few days after moving, Steven Baker thought he was being diligent by phoning his insurance company to inform it that his home address had changed.
Once the provider put the new location into the computer, Baker says, he was told his car insurance shot up by about $600 a year — from $1,950 a year to $2,560.
"I was shocked," said Baker. "I asked them why. Nothing had changed. I hadn't had any accidents."
Baker said his provider, TD Insurance, told him the increase was because of his new postal code.
Baker had moved from a side street near Ossington Avenue and College Street to a similar sized road about four kilometres north near St. Clair Avenue and Dufferin Street.
"If you look, the two streets, they're almost identical in terms of the type of neighbourhood and the amount of traffic," said Baker.
Rates depend on area's collision history
Insurance expert Anne Marie Thomas said the reasons behind premiums aren't always easily visible.
"Actuaries look at statistics and instances to determine where accidents happen most frequently," said Thomas. "Where accidents happened historically is likely where they are going to happen in the future."
Steven Baker says his car insurance shot up $600 when he moved three kilometres north. (Steven Baker )
Thomas works for Kanetix.ca, a company that monitors insurance rates and helps consumers compare rates from different providers. Kanetix.ca also has mapped out areas in the Greater Toronto Area by postal code to show where rates are the highest.
CBC News Toronto used Kanetix.ca to compare the rates between Baker's new postal code and his old one.
For a single 30-year-old with a clean driving record in a Ford Focus, TD's rates went up to $2,565 a year from $1,835. Thomas said there could be numerous factors that cause that increase. The roads may be wider, speed limits higher or there could be more theft in Baker's new area. When Baker asked TD Insurance for an explanation, he said, the person on the phone told him his new location had more intersections.
Baker wants providers to look at driver's history
"I asked him if he could tell me a neighborhood where I could move to where my insurance rates would go down, and he said Front Street," said Baker. "That got me a bit upset because that's all intersections and [Front Street is] much busier than the neighborhood that I moved into."
The downtown section of Front Street near Union Station may seem busier, but Thomas said that congestion leads to less severe accidents, something actuaries take into account.
"We're not going at 60 km/h," said Thomas. "Because of traffic we're going at 20 km/h. If we hit the vehicle in front of us the damage is going to be less."
CBC reached out to TD Insurance with Baker's information and the company confirmed that risk profiles are tied to a person's neighbourhood.
"Even within small geographic distances, claims rates can vary widely due to a number of factors like traffic density, levels of pedestrian traffic and weather exposure," said TD Bank Group spokesperson Crystal Jongeward.
Still, the idea of setting a driver's rate based on their address frustrates Baker, and he's going to start looking into other providers.
"A driver's behaviour and accident record is what they should be looking at. Not where someone happens to be parking their car," said Baker.
The practice of determining premiums based on postal codes has been under scrutiny for a while. Both the NDP and the Liberals are promising to halt it if they're elected next month.
Thomas said that although it sounds like a good idea, she doesn't know how it could work, because "so many facets of an insurance premium are tied to where you live."
Steven Baker says his car insurance shot up $600 when he moved three kilometres north. (Steven Baker )
