An Income Share Agreement, commonly abbreviated as "ISA," is not a loan or debt instrument. An ISA is a promise to share a percentage of your future income in exchange for funding. For example, a student may borrow $10,000, and in return agree to pay back 3% of their monthly income for the next 120 months or until they reach a payback cap.
ISAs have no interest and no balance due
Unlike loans, ISAs have no interest, and no balance due. By the time you finish making payments, the amount you paid back may even be less than the amount you borrowed. In the previous example, if the student makes $50,000 annually, their monthly payments will be $125. At the end of the 120-month payment period, they will have paid back $15,000.
Income-based, so payments are always affordable
Because ISAs are income-based, your payments drop to $0 if you lose your job or become unemployed. We also know it can be hard to put loan payments ahead of necessities like rent and food, so you'll only make payments as long as your income is greater than $20,000. If the student with the 3% ISA only makes $30,000 annually, then their monthly payments will be just $75, and at the end of the 120-month payment period, they will have paid back $9000 - only 90% of what they borrowed!
Based on your future, not your past
While loans are based on things like your credit score, collateral, or co-signers, ISAs are based on future earning potential, making them more accessible and less predatory than loans.
That means we look at your student profile, estimate your future earning potential and employment prospects, and set the terms based on what we think you can achieve. Note that terms will be different for different borrowers - apply today to see what we can offer you!