Human Capital Contracts: “Equity-like” Instruments for Financing Higher Education

Human capital contracts are “equity-like” financial instruments used for financing higher education. These instruments are better suited than student loans to attracting the private capital needed to finance higher education. This report argues that in order to ensure the development of human capital contracts as a viable alternative for financing higher education, policymakers should assure investors that such contracts are fully enforceable and afford them the same legal protection that student loans receive today.