We actually do pretty much the opposite of that in the U.S. Student loans have a Federal guarantee, so the incentive is to sign people up for as much education as possible. If they succeed, great. If they fail, they’ll be paying off the loans until they die at which time Uncle Sam will pay the balance. With compounding interest, the ones who fail are the most profitable.
We actually do pretty much the opposite of that in the U.S. Student loans have a Federal guarantee, so the incentive is to sign people up for as much education as possible. If they succeed, great. If they fail, they’ll be paying off the loans until they die at which time Uncle Sam will pay the balance. With compounding interest, the ones who fail are the most profitable.