Then I heard about Monotizing Emma:
The year is 2013 and boutique investment bank Thackeray Walsh is arranging the first-ever securitization of smart teenagers.Nothing like the insanely convoluted securities that brought the global economy to its knees in 2008-2009, this bond is backed by something far more valuable than sub-prime mortgages or toxic assets.It’s backed by an A-list pool of adolescents pledging their future earnings. They get money now in return for a share of their subsequent income.Should of copyrighted it when I had the chance. Well this just a play, surely this can't exist in real life. Think again:
Students and alumni connect through UniThrive’s online community. Alumni search for students they want to lend to. Alumni pledge as much or as little money as they are willing. At 0% interest, these loans represent the best offering in the student loan market. Students form lasting relationships with their alumni lenders. Alumni can put a face to their contribution. Students pay back the loans after graduation.So it's a non-profit now, but there's no reason this same idea can't work with positive interest rates. But who would want to invest in students? How about me? Not just because I'm some delusional free marketeer, but because I'm a teacher. Who has better information on these investments than educators. Heck, this could even be a form of incentive pay for teachers:
What if teachers were paid based on the future income their students make. For example, student A grows up to make 100k a year. We look at the records and find the 20 teachers that taught student A and compensate them based on that. Compensation could be based on number of months spent with student.
I like the first idea a lot. Not sure I'd want to pin teachers pay on the success of students though.
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