What are income share agreements and how do they work?

What are income share agreements and how do they work?

Income share agreements (ISAs) are contracts where students agree to pay a percentage of their future income for a set period in exchange for funding their education.

What are the benefits of using an ISA instead of a traditional loan?

ISAs can be more flexible than traditional loans, as payments are based on income, which can reduce financial stress during low-earning periods.

Are there any risks associated with income share agreements?

Yes, risks include potentially paying more than you would with a traditional loan if your income increases significantly after graduation.

Who typically offers income share agreements?

ISAs are often offered by educational institutions, bootcamps, and some private companies looking to invest in students' futures.

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

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