Only a few comments, so I can respond briefly.
I do not see how equity loans can discourage entreprenuership or investments in human capital. Does allowing companies to issue equities discourage borrowing by companies? No, for instead it gives companies greater options, and so too would such human capital equity loans. Companies that do not want to share their profits can only take on debt; similarly, individuals that do not want to share their earnings can only take on fixed interest debt.
I find it strange that some of you are perfectly willing to have governments make special rules for their insured lending so that student loans are not dischargeable by bankruptcy. Yet you are nervous about allowing this privilege to private lenders making other human capital loans. The purpose of my suggestion about bankruptcy is to encourage greater amounts of human capital loans-at present there are practically no fully commercial human capital loans. This situation does not hurt rich persons much, but does badly limit the opportunities of young persons from poor families. They might gravitate to the equity side of my proposed human capital loans, but why is that bad if this gives them more opportunity for investments in themselves, and in other ways?
A good comment about selectivity among which persons take out equity loans and which take fixed interest loans that is highly relevant. Yale's system of equity human capital loans for their students of a couple of decades ago failed partly for this reason. But this is also a problem with equities for private companies, and that works reasonably well. To the extent that information about talents and occupations, etc is generally available, then the lending market on human capital loans should adjust its conditions to the abilities and occupations of indviduals.