Another idea — school loans
Posted by John Humphreys on May 18, 2005
I wrote about an idea to offer micro-investing opportunities for people with little money to invest in high-risk investments. I have another idea…
One of the potential problems of education is that the intertemporal market (ie student loans) is weak because students don’t have any collateral to offer and they are investing in intangible asset (their mind).
No problem for most kids, or kids from developed countries. But it occured to me that there might be a market for micro-financing poor kids through school and then having them repay their debt after they get a job. One way to coordinate it might be to have the children pay a fixed portion of their income back into the scheme… and then use that money to finance more education loans. In this way the scheme can become self-financing.
There is a link between this idea and my last one — both are focussed on offering financial products to people with little money. Other options include offering micro-finance to small businesses (like the Grameen Bank) and offering other micro-investing opportunities (perhaps property).
yak sox said
What about Free Education ya bastard.
Why don’t you blog about where yr at, the scenery n’ stuff.
Are you gonna do a summer camp?
John Humphreys said
Not sure about the summer camp. I e-mailed Brandan about it and he said the camp is from 1-20 August. If I’m not in europe then I’ll do it… would be good to go back to Korea.
Scenery? Beach is nice. Buildings are blah. Girls are pretty. The sleeze is ugly.
Human Capital Project « Chapter 5 said
[...] Comments Another idea — school loans « Chapter 5 on Business idea — Humphreys Investments?jimmythespiv on Sick in HanoiBeck on China, part 5terje [...]
Human Capital Project « Thoughts on Freedom said
[...] Capital Project” (HCP) that I was trying to put together. I first considered something like this back in May 2005 when I wrote: “But it occured to me that there might be a market for micro-financing poor kids [...]