in comparing the merits of human capital contracts with loans, proponents have noted that providers of hccs are better aligned with the financial interests of the receiver of the funds, and the stream of payments required should be relatively more affordable to individuals who experience adverse economic events such as unemployment or other decreases in disposable income. relative to conventional consumer loan structures, however, the regulatory framework related to human capital contracts is underdeveloped and has thus far prevented widespread proliferation of the product despite considerable academic research. however work is underway in the uk to combine the benefits of human capital contracts with the legal framework developed for loans under the consumer credit act. it is estimated that this will improve both borrowing costs and returns by lowering the default rate.