[b_tterc_p]

Any instrument can be made favorable. You can calculate out expected values. Sounds like yours was a reasonable deal.

But... assuming they don’t set prices using things other than degree, and that they’re priced to be on average equally profitable with an equivalent loan, you’ll be better off getting this arrangement if you expect to earn less than your average peers, and worse off if you expect to earn more. It’s basically a case of moral hazard. Long term you would expect people with less fiscally ambitious goals to pursue this (e.g. those who want to do more charitable, less fiscally rewarding careers) which means the average rate of return would need to be more punishing than traditional loans.

Mostly this just seems ripe for abuse against the loan providers to me, and that the terms will be made very unfair to compensate.