The benefits of deferring the payment of higher-education costs are increasingly acknowledged as a way to overcome student-borrowing constraints. Since higher education is a risky investment and students are generally risk averse, the repayment arrangements proposed in the literature frequently include some insurance. In a competitive environment,…

At a time when college degrees are increasingly a prerequisite for middle-class wages, less than 40 percent of college students are able to demonstrate proficiency on literacy tests, barely half of college students graduate on time, and many do not graduate at all. At the same time. the price of college continues to increase quickly and…