Under an ISA contract, you will receive funds to pay the university fees in exchange for a commitment to repay a percentage of your income after graduation. Thompson also said she was concerned that ISA students could prevent students from borrowing federal funds that also have income-based repayment options and could offer the same conditions, regardless of the student context. In the case of income-participation agreements, students do not pay for education when they start a program, but pay a percentage of their income for a period after graduation. But schools still need working capital to deliver educational programs. Unlike traditional student loans, ISAs bring your school`s incentives into line with your success. The biggest advantage of funding your training with an ISA is that the payments are tailored to what you can afford based on your income. If they fall into difficult times and lose your job, you pay nothing; no longer fear insolvent business. On average, Leif`s partner schools recorded an 86% increase in qualified applications. The Leif platform offers schools an all-in-one solution that offers personalized programs, implementation and start-up support, regulatory advice, revenue reviews and payment management, as well as scalable growth financing solutions. Holberton already offers revenue-participation agreements. But the school “cannot accommodate as many students as we would like because we have limited cash flow,” said Sylvain Kalache, co-founder of Holberton. He hopes that the new financial instrument will allow the school to add more students who want to pay for teaching through isA.
Leif allows you to finance your training with an income-action contract. An ISA is a contract between you and your school that allows you to go to school without paying for classes in advance. As soon as you graduate and earn above a pre-defined minimum income, you agree to pay a small percentage of your income for a specified period with a pre-defined cap. Simple and simple. Proponents of income-participation agreements argue that the funding model offers an alternative to private student loans and shifts the risk of borrowing from students to training providers and investors. Instead, Ricciardi believes that investors are attracted to ISAs as an alternative to fixed-rate investments such as bonds. “While the return may not be high relative to venture capital returns or equity returns, if they are higher than other fixed-rate returns, it may be attractive to investors,” he says. Student debt and public policy experts have serious reservations about income-participation agreements. “The fundamental condition of the model is that they make a profit. And they`re going to brag about the terms of the agreement differently based on factors like the type of school you attend, its results, the major you choose and who knows what else,” Thompson says.