There ought to be a better way to pay for college, says former Indiana Governor Mitch Daniels.
"We think we've found one," he told CNNMoney.
Daniels is now President of Purdue University, which is offering students an alternative to high-interest loans. Instead, they can promise to pay private investors a share of their future income in exchange for funding.
How much they pay and for how long will vary based on the terms agreed upon by the student and their investor. The repayment time can be up to nine years long, and the income share will be between 0.75% and 10%, according to the rules of Purdue's program.
It launched this year, and more than 140 Purdue students have received funding this way.