What parts of this are legal now? Why does nobody do it?
It would seem quite feasible for a lender to offer a contract that can be repaid by conventional means or fraction-of-taxable-income means, whichever is lower over the lifetime of the loan. If the conventional part is somewhat higher than the competing pure-conventional rates, there is incentive for the lender to offer such, and all the above applies to the borrower.
What parts of this are legal now? Why does nobody do it?
It would seem quite feasible for a lender to offer a contract that can be repaid by conventional means or fraction-of-taxable-income means, whichever is lower over the lifetime of the loan. If the conventional part is somewhat higher than the competing pure-conventional rates, there is incentive for the lender to offer such, and all the above applies to the borrower.
This might be of interest to you:
https://fantex.com/
Fantex sells human capital contracts for professional athletes.