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Higher Ed in the News

Failure insurance proposed to keep students in college

January 11, 2010

What if students could buy a "failure insurance" policy that would reimburse them for a portion of their student-loan debts if they flunk out?

A well-designed insurance system could actually improve students' effort and their attainment rates, according to a working paper that was presented in Atlanta recently at the annual meeting of the American Economic Association.

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