Innovating Education Access Norms: Income-Sharing Agreements

Access to good education is critical to the overall development of a human being. And that’s true to any person on the planet, across geographies. Besides, access to education decides our earning power, or the ability to earn a livelihood. The future of your next three to four generations depends on what level of education you acquire today. And hence, access to world-class education becomes of paramount importance. But then, the biggest problem with having access to higher education is the costliness attached to the same. The tuition fee associated with most of the higher-study programs across the globe is exorbitant, and a middle-class family simply cannot afford to give their kids an education that costly.

So, what’s the way out? Borrowing education loans is one option, but not a feasible one, as you get charged a high percentage of interest on the principal amount, plus you are forced to pay the loan back in a predetermined time period after having completed the concerned higher-study program. High indebtedness is a huge adversity that arises from the said situation. Added to that, there comes extra pressure on you to get a high-paying job soon after completing your degree course. ISA is a great scheme for education-financing that has helped to innovating education to a large extent in the US. Let’s discuss it in detail.

Income-Sharing Agreements: Welcoming Alternative to Education Loans

Even among the developed economies, equal access to good education remains a challenge for the government, as well as the general public. The federal education schemes and assistance policies hardly suffice the educational needs of those, not rich. Financing still remains a pressing issue when it comes to seeking higher education at the top universities/educational institutes.

However, in the recent past, a new option has become available for education-finance in the US, known by the name ‘income share agreement’ or ISA. This education-financing option is fast getting popular among the educating leaders and students worldwide. 

What is the Income-Sharing Agreement, or ISA?

In this education-financing scheme, a contract is signed between the ISA provider (a bank or college) and the beneficiary under which the beneficiary will receive the money for his education, and once the study-course gets completed, the beneficiary would need to repay the amount borrowed in a set amount of time. The biggest advantage with ISA is that if you fail to get a job, or the career doesn’t take off, you can avoid the debts until that time period. Basically, you are not bound to repay if you don’t get successful.

If you get hired soon after the completion of your educational program, you will need to pay a predetermined percentage of your monthly income to your ISA provider for a specific number of years as agreed on, in the contract. Edvantic, the world’s education company, supports the said education-financing policy, as it believes in equal opportunity to education for every human being on the planet.

Benefits with ISA Contracts Compared to Conventional Loans

ISA has got a plethora of advantages for students seeking quality education at the top schools and universities. A few of these would be:

  • It offers great flexibility in terms of repayment: The student only reimburses a predetermined percentage of the income, the post being employed. Payments are not to be made, in case, you aren’t employed.
  • No bond or indemnification needs to be signed to receive the money for education under an ISA contract.
  • Owing to a fixed percentage of your earnings to the ISA provider irrespective of what amount you get paid as salary is a big relief for students. It gives freedom in terms of choosing a job of your choice, or else, you would have got forced to consider a high-paying job role.
  • In the event of a market crash, or career not flying off, you don’t have an added pressure on you to pay back the borrowed amount.

Hope the article helps in motivating you to seek world-class education across subject disciplines, and as a result, you get employed in a high-earning job role post completing your education. Best of luck!


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