The new @ManhattanInst report on "income share agreements," funded by the @gatesfoundation says that until recently no one acted on Milton Friedman's 1955 idea. But that's not right. There were experiments in the 1970s (Yale, Harvard, Duke) and the 1980s (Reagan). And then... the 1992-3 changes to federal loan program created an income-contingent repayment (ICR) option, a version of an ISA. In fact, the ICR payment varies with amount borrowed, the approach MI's @PrestonCooper93 and @SheilaBair2013 prefer. After 25 years some debts have been cancelled.

The @WSJ today takes the position that @NYGovCuomo 80% cap on government funding of for-profit colleges would “kill” good schools. Yet the colleges cited in the editorial would easily pass, proving the point of the Cuomo’s reform: private market forces improve college quality. The School of Visual Arts, for example, gets only about a fourth of its funding from govt aid. The remainder is from employers & students, providing some assurance that taxpayers are getting value, not the proverbial ten-dollar hammer that gets sold to taxpayers for $600.