Many recognize student loans as a systematic mis-alignment of the interests of schools, borrowers, and capital providers. This old model is broken.
Income share agreements (ISAs) are a fast-growing alternative to private student loans and soon to be investable by accredited investors on the edly marketplace.
Income Share Agreements (ISA’s) are new products that make college, grad school and skills academies more affordable for all students.
Students agree to pay a fixed percentage of their income for a fixed-length period after leaving school. Repayment rates determined by academic major and school.
Not a loan; no money is borrowed and there is no interest rate or balance.
edly contracts with universities and other ”upskilling”/education providers.
-Top educational institutions that provide high-quality, affordable training with positive employment outcomes for graduates.
Investors on the edly platform can analyze ISA investment variables such as student outcomes data including audited job placement data and salary information.
Investors can support their favorite schools or support specific programs (e.g., the Arts, or Education), and be part of the solution to the country’s biggest financial problem while earning a return.
The edly marketplace allows for previously unattainable levels of market development by:
• Broader investor participation
• Schools customize program terms
• Clear market visibility and data
Increasingly, top universities and skills academies offer income share agreements as an alternative to private student loans
Properly designed ISA programs cap repayment levels, and take into account students' potential, not their past.
ISA's alignment of interests between schools, students and capital providers is impossible in the student loan model.