Human Capital
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0Human Capital is a social enterprise designed to free college students from crushing student loan debt by bringing in private investment.
Vote: 27
Team Leader:
Sammy Prywes
Team Information:
Sammy Prywes T’13 Kevin Hogan T’13 Eric Kim T’13
The Idea:
Human Capital will succeed in addressing this problem through a mutual fund model that provides benefits for both students and investors. Human Capital will function essentially as a mutual fund but rather than holding a collection of stocks, our portfolios will hold income claims on a collection of high school students. The students must meet minimum academic qualifications set forth by Human Capital in order to be eligible for tuition payments. This ensures that our investors will get a healthy return on their investment as the students are “creditworthy” in the sense that they have a high likelihood of earning significant income in the future. Once students are admitted into Human Capital and have signed comprehensive contracts that protect both them and our investors, they will be placed in a pool of students with similar academic merits which will then be eligible for sale to investors. Investors can choose which pool to invest in depending on their risk preferences as the pool of students with less impressive academic achievements will likely earn smaller incomes in the future but must also compensate for this by offering a higher percentage of their income than higher performing pools of students.