Via Tyler Cowen and Marginal Revolution:
A school in China is allowing students who don't do well in tests to borrow a few extra marks as long as they pay them back with interest.
The scheme was recently introduced by Penglai Road No 2 Primary School in the Huangpu District of Shanghai, reports Xinhua.
Students who do poorly on a test can ask their teachers to lend them a few points to improve their grade, but twice as many points must be paid back on the next test, assuming they achieve a better mark.
If they don't, interest on the loan continues to run at 100% per test until it is paid off.
It is reported that about 40% of students at the school have taken out such loans.
See the full story here.