What are the risks associated with income share agreements?

What are the risks associated with income share agreements?

Income share agreements (ISAs) can have several risks, including high repayment amounts, lack of regulation, and potential impact on future earnings.

Can you explain how repayment amounts are determined?

Repayment amounts in ISAs are typically based on a percentage of your income after you reach a certain income threshold, which can lead to higher payments if your income increases significantly.

What happens if I don't earn enough to make payments?

If you don't earn enough to make payments, many ISAs have provisions that allow you to defer payments or even cancel the agreement after a certain period.

Are there any alternatives to income share agreements?

Yes, alternatives include traditional student loans, scholarships, and grants, which may have different terms and conditions.

How do I know if an ISA is right for me?

Consider your career prospects, potential earnings, and how comfortable you are with the repayment structure before deciding.