Better Model for Kentucky Sample Clauses

Better Model for Kentucky. What the educational finance community really needs are quantitative studies of ISA repayment history to evaluate their outcomes. But since many of these arrangements are offered by for-profit, private companies, and government auditing and oversight of these contracts is nonexistent, access to such data and analysis are difficult to come by. Furthermore, student loans are easier to study because each borrower is essentially locked into the same terms and conditions at a particular moment in time. ISAs vary per model per provider per individual and no two repayment situations will be exactly alike. This gap in research and the difficulty in observing repayment behavior helps build the case to initiate an ISA pilot program through a non-profit, governmental entity with publicly accessible outcomes, data and results, but with specific guardrails in mind. Recommendation 1 Transparency: First and foremost, ISAs need to be clearly labeled as “debt” or “loans” to students and their families because there is a future financial obligation that must be paid. When financial aid offices offer these products in lieu of traditional federal or private student loans, they are doing a disservice to the students and families who are desperately seeking assistance and honest advice in how to attain their higher education goals. ISAs should be offered as a last resort after all other federal and state options have been exhausted, like to those that have maxed out their federal loan limits and are not likely to qualify for private loans to cover unmet costs. Financial aid offices need to stop allowing providers to inaccurately market the costs of ISAs with inaccurate cost comparison calculators and use expected salary information from their own institutions. Recommendation 2 Program Goals and Expectations: Risk-averse attitudes may be changed with greater communication efforts regarding income-based repayment or ISAs, thereby solving the problem of underinvestment of higher education. If one were truly interested in avoiding the downside risk of student loans, there needs to be more of a commitment to prospects of employment upon
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