[tway_GdBRwW]

> But why don’t market forces correct these issues?

Another theory: The value creation is not linked to the value capture. So market forces make a bad feedback loop.

Look, I'm totally pro business, but business is only "good" at allocating capital when value capture and creation are linked. Education isn't like that. The closest we have are the bootcamp schools, where they take a cut out of your first 2 year's salary if you find a job or nothing if you don't.

When capture/creation are not linked, you need a different social organization method. "Government" or "Religion/non-profit" come to mind. Perhaps others have additional suggestions.

[imtringued]

The fundamental problem in job education is that it needs to be linked to the needs of future employers, but those employers do not have an incentive to hire workers and train them, thereby aligning the education program with the needs of the employers. Employers do not want to pay for training, because employees can leave at any point, so they decided to let employees go to university and pay for their own education. This then leads to a misalignment between what people elect to receive an education in and what employers want, because people aren't mind readers and know exactly what will make their boss five years into the future happy. So what happens instead is that higher education becomes purely about standardising worker skills, so that each worker is a replaceable cog according to their degree. This means you can just hire X amount of Y degree holders instead of caring about their individual skills.

[MarketingJason]

I ran a coding bootcamp school that had both your typical pay-upfront and later added an option like you outline. I can't speak for all programs, but schools use an affiliate third party lender for those "free" loan programs.

It was relatively new for us when I left, so I never saw the aftermath. I know it worked out well for some students, but my biggest concern was ensuring payments only kicked in if the job was "in-industry or field". My logic was the value isn't there if you go to a coding bootcamp only to not use the skills.

I was still worried they'd basically ask "do you use a computer?" and consider it in-field.

Another issue here is we had folks just looking to up-skill and the value return was harder to gauge if they were returning or continuing to work their job. This was mostly limited to our part-time program so we didn't offer the delayed-loan for it.

[recursivecaveat]

Apparently yeah at least arguably the most prominent boot camp takes a verry broad stance on 'related' occupations for income sharing: https://www.sandofsky.com/lambda-school/