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tokyogai
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Platinum
Wonder about Terms
tokyogai   5/24/2012 10:28:03 AM
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Sherri- I wonder about the repayment terms. The government loans can not be escaped from by Bankruptcy- can these? Even with the nearly impossible to escaoe terms on federal loans, the default rate is still climbing. I wonder how these will do?

ProfR
User Rank
Platinum
Re: Stanford Business School? Really?
ProfR   5/24/2012 9:25:39 AM
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StreetSmart,

I agree that Stanford Business School is not representative. Also, students might be less likely to pay back the money if they think that wealthy alumni can afford to lose it.

If Alumni have money to invest in their school, I think they should pool the money and set up scholarships for students.

Street Smart
User Rank
Platinum
Stanford Business School? Really?
Street Smart   5/24/2012 8:59:00 AM
NO RATINGS
@Sherri, I really enjoyed this post, and as an avid follower of social media, philanthropy and microfinance trends, I found the idea of the double bottom line very interesting.

BUT...I started to get a little sceptical about the concept when you said that alumni involvement would make it more likely that students will pay back their loans. "Where's the proof of that?" I asked myself.  

And then I read that the track record so far is with STANFORD BUSINESS SCHOOL! Speaking as an alumna of said institution, let me assure you that that is hardly a representative sample!  Stanford Business School is very small--roughly a third the size of Harvard--and the ties between alumni, students and industry are particularly deep and lasting.  Stanford MBA graduates command huge starting salaries, so debt repayment is far less onorous for them than for nearly everyone else in the graduating world.

Moreover, Stanford Business School students are more likely to have come from top undergraduate schools with needs-blind admission policies, so most likely arrive at the MBA program with little or no debt from their undergraduate years.  And once enrolled, all or much of their tuition expense may be underwritten by former employers who are hoping to lure the students back two years later.

This idea bears watching but I'm unconvinced that the do-gooder assumptions will be scalable. 

 

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