Brilliant, I've long thought that all universities should run under this model (although when applied to the humanities I can hear in my head the 3000 years of the land owning, non-laboring intelligentsia protesting about the noble virtues of an education uncorrupted by the banalities of productive yada yada...) But anyway back to CS.

1) Risk is pooled in the institution rather than distributed amongst the students, which is the textbook way to deal with uncorrelated risk.

2) The incentive of the university and the student are aligned as much as possible

3) By putting costs and benefits into a form with equal time horizons, disadvantaged students no longer need to rely on the generosity of governments or private lenders for upfront cash.

The only thing I'd always questioned was whether such a scheme as described above could pass legal muster, as it bears a resemblance to involuntary servitude, as well as requiring access to income statements. I've never heard of anyone but the govt placing liens on income. I'm hoping a workaround has been found, because from a strictly incentive based analogy, this model has the potential to do to modern education what patent law did to manufacturing