Some students are selling shares in themselves to pay for their college educations. This presentation explains how this works and whether it might be right for you

1. Helpful Financial Information from National Debt Relief …
Could You Sell Shares In
Yourself To Pay For Your
College Education?
Did you graduate from college in 2012? If so and if
you’re typical, you probably graduated owing
$25,000 in student loan debts. That's just the
average for an undergraduate degree. If you got a
graduate degree in business, law or medicine, you
could now be looking at anywhere from $50,000 to
$100,000 in student loan debts. (Continued …)
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2. Helpful Financial Information from National Debt Relief …
Of course, if you racked up that $100,000 in becoming a doctor, you could look at that as a good
investment that will pay off big time in the years to come. On the other hand, if you borrowed
say $30,000 to get a degree in business or marketing, you could be in trouble. Why is this? It's
because you might not be able to find a job this year, next year or even the year after. We saw
one recent study that there are approximately five college graduates for every job available that
requires a college degree.
Student loan debt is like no other debt
The biggest problem with student loan debts – besides paying them off – is that they are unlike
any other debt. You cannot discharge student loan debts through bankruptcy and there is no
statute of limitations. In short, you can run from student loan debts but you can't hide. If you fail
to pay back that debt, you could see as much as 15% of your salary garnished to satisfy your
debt. Today, the government is even turning student loan deadbeats over to debt collectors. And
trust us when we say that one of the last things you want in life is to fall into the clutches of an
aggressive debt collector. He could make your life literally a living hell.
Few options
If you're seriously struggling to pay back your student loan debts, you do have some options
although none of them could be termed "ideal." For example, it's possible to get student loan
debts forgiven after approximately 10 years if you work full-time in a public service job. This
includes working for the federal, state or local governments. There is also a loan forgiveness
program for people who are willing to teach in low-income schools. However, the only types of
loan that qualify for forgiveness are loans made under the William D. Ford Federal Direct Loan
(Direct Loan) Program. So, you would not qualify if you received a Federal Family Education
Loan (FFEL), a Federal Perkins Loan or any other type of student loan. But if you have an FFEL
or Federal Perkins Loan, you could consolidate it into a Direct Consolidation Loan and then
apply for loan forgiveness.
Loan deferment
As you might guess, loan deferment is a way to get student loan payments deferred or put off for
some period of time. If you have a Direct Subsidized Loan you would not be charged interest.
However, if you have a Direct or FFEL Unsubsidized or PLUS loan, you will be charged interest
during your deferment. And if you don't pay this interest, it will be capitalized at the end of the
deferment so that you will be paying interest on interest.
There are a number of ways to qualify for a deferment including full-time enrollment in a
graduate level program, if you have a hardship such as participating in the Peace Corps, are
serving on active duty during a war or some other military operation, in the National Guard or an
approved full-time rehabilitation program.

3. Helpful Financial Information from National Debt Relief …
Student Loan forbearance
If you're having a problem paying back your student loans and do not qualify for a deferment,
you could apply for student loan forbearance. This is another way to temporarily put off or
reduce student loan payments. There are a number of requirements for receiving forbearance.
This includes serving in a medical or dental internship or residency program, if the total amount
you owe each month for all of your Title IV student loans is 20% or more of your total monthly
gross income or you’re serving in an approved AmeriCorps position. You might also be eligible
for forbearance if you are called for active duty in the US Armed Forces or are performing a
teaching service that would qualify for forgiveness under the Teacher Loan Forgiveness
Program.
If you qualify for forbearance
If you do qualify for student loan forbearance, you should be aware that interest is charged on all
types of loans. And if you don't pay back this interest, it will be capitalized at the end of your
forbearance and again, you will be paying interest on interest.
Selling shares in yourself
Back in 1964, the economist Milton Friedman proposed a radical plan for funding a person's
education. The idea was that people would sell "stock" in themselves in the form of a share of
their future earnings. These shares would be purchased by investors and used by the borrowers to
fund their education and training. The idea is that this stock would be profitable so long as the
ROI (return on investment) on the degree exceeded the market rate of interest.
As outrageous as this concept might seem, now 60 years later, this is actually beginning to take
shape in the form of income-share agreements (ISAs). These are contracts that permit investors
to provide money up front to individuals in exchange for a percentage of their future earnings.
This idea has been gaining in popularity due mostly because of the nation's huge student debt
problem. There are companies such as Upstart, Pave and Lumni that have adopted this model to
help talented people get funding for anything from a business venture to their educations.
New legislation
Sen. Marco Rubio and Rep. Tom Petri recently introduced legislation to define the terms of these
investment vehicles and broaden their use. This act is formally titled the Investing in Student
Success Act. It is designed to provide a legal framework for ISA's so that people seeking funds
and investors would both know exactly what they were signing up for. Among the other details
specified in this act are the minimum lengths a contract can last and how much a person seeking
funds can owe (15%). The bill also formalizes the fact that an income share agreement is not a

4. Helpful Financial Information from National Debt Relief …
loan, which is a question that companies such as Pave and Upstart have been grappling with in
trying to define their contracts.
Could help all students
Rep. Petri, who is a member of the House Education and the Workforce Committee, has said that
these plans should help all students get what they need in the way of financing, even students
from disadvantaged backgrounds. The basic concept behind these ISAs is that they would make
life easier for the borrower because his or her debt would be repaid in proportion to their
earnings. For example, if a person received an ISA contract to pay back 6% of their earnings
over a five-year period, their monthly payments would vary depending on his or her salary at any
given time.
Won't solve every problem
It's not clear whether this program will actually help give people with disadvantaged
backgrounds better access to financing for their educations. The problem with both Upstart and
Pave is that they are dependent on algorithms that often result in investments in people who
already have well-decorated resumes and top-tier educations.
Because it's not a loan
What's true is that an ISA when compared to a traditional loan does a better job of aligning the
incentives of the two parties – the borrower and the lender. This is because the investor sees
returns that are directly tied to how well the student or borrower – their investment – performs.
Lenders who invest in a student that gets a good education and goes on to a high-paying job will
get back proportionately more than a student who struggles in the labor market. Since investors
can't force borrowers to do anything – because an ISA is not a loan – it's in their best interest to
help people on their way to success.

5. Helpful Financial Information from National Debt Relief …
Does this sound familiar?
• You are tired of worrying about money…
• You are losing sleep due to mounting credit card debt…
• You are fighting with your partner about the bills…
• You are living paycheck to paycheck…
• You are falling behind on your debts…
• You are losing hope…
It’s time to talk with National Debt Relief!
Go to
http://www.nationaldebtrelief.com/free-student-loans-
quote-now/?src=PDFs
Or Call
1-888-275-4499