![A circular flow chart showing external funders, employers, education/training providers, and workers/trainees connected by arrows indicating fund provision and training roles.](https://socialfinance.org/wp-content/uploads/2026/03/Untitled-design-15.png")
Lessons Learned: Financing Workforce Education and Training through Outcomes-Based Repayments
From the Social Finance Institute
The Social Finance Institute
Key Takeaway
This paper, to be released on April 20, 2026, is a partnership between Harry Holzer, John LaFarge Jr. SJ Professor of Public Policy at Georgetown University’s McCourt School of Public Policy, and the Social Finance Institute’s David Socolow.
Please note: This page describes a project to be released on April 20, 2026.
Overview
In today’s labor market – defined by rapid technological change, persistent worker shortages in key industries, and growing political concern over student debt – there is renewed urgency to find more equitable and sustainable ways to finance skills training in the face of significant gaps in available funding for education and training programs.
In partnership with Professor Harry Holzer, this forthcoming paper will explore the ecosystem of outcomes-based approaches to financing workforce education and training in the US. Building on the economic framework for investment in skills training by workers, employers, and others, the paper will analyze 33 programs in the U.S. and describe key lessons learned for outcomes-based financing to expand workers’ opportunity to earn credentials and create accountability for worker success.
Outcomes-based repayment models offer new ways to finance education and workforce training by tying repayment to participants’ post-training success. Instead of workers or employers paying for training upfront, third parties like governments, philanthropies, or impact investors cover the initial costs. Repayment is required only if trainees achieve outcomes like higher earnings or job retention. However, these initiatives face challenges around repayment compliance, participant understanding, and consumer protection.
This paper will be released on April 20, 2026.
Information on the corresponding Lessons Learned: Financing Workforce Training for Results event at Georgetown University’s McCourt School of Public Policy can be found here.
To learn more, contact us.