Human Capital Contract Basics

More Information About Human Capital Contracts

This alternative method of getting college funding explained

Human Capital Contracts give students an opportunity to pursue an education they might otherwise not be able to afford with either money their parents or they have saved, or through student loans.  In some cases the student has a choice whether to go to the best college she or he gets in to as long as he or she is willing to take on a mountain of student loan debt, or to go to a college she or he is not as excited about that will lead to a more manageable student loan debt load.  This is not a fair choice, yet with tuitions skyrocketing and showing no sign of slowing down, this is a reality

Enter the corporation, foundation , or wealthy individual who has learned that investing in potential is a way to make money and also fulfill a mission.  These groups have traditionally sought to invest in such things as companies, products, currencies, real estate, etc.  But the bottom line is that they might be plenty willing to invest in anything that could provide a solid return.  Human Capital Contracts give corporations and foundations an opportunity to invest in a person’s potential with a mutually beneficial outcome

After college of graduate school is over, Human Capital Contracts continue to be beneficial as many companies hire those students they once supported.  And even if they don’t directly hire the student, if they have chosen where to invest wisely they end up with a good investment over time, and the student ends up with a payoff method that is much more fair and less burdensome that student loans during the initial years of building a career.  Often the corporation or foundation is incentivized to provide the graduate training and other help in developing a successful career since that outcome is a win-win.