Do well by doing good

Income Share Agreements (“ISAs”) are a fast-growing alternative to private student loans. The edly ISA marketplace makes it easy for accredited investors to invest in this growing market.

edly seeks investments in ISAs that we believe are likely to produce high risk-adjusted returns for investors, while also providing access to education for promising students. 

Investment Characteristics

Diversification

Investors get access to “shares” of pools of income share agreements (ISAs). Pools are diversified, containing cash flows from a variety of ISA contracts that will earn payments from a number of different student obligors.

Monthly Cash Flow

Investors earn a fixed minimum return while students are still in school

Aligned Incentives

Schools are incentivized to ensure that students meet certain milestones like graduation and employment

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Change performance assumptions to see how different student outcomes influence returns

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View monthly cash flow projections driven by edly’s ISA Analysis Calculator, ISAAC

edly bridges the gap between Schools and ISA investors.

More About Investing on edly

Investment Philosophy

edly seeks investments in ISAs which we believe are likely to produce high risk-adjusted returns for investors while also providing access to education for promising students.

Our approach is systematic and can be applied to any higher education program. Our screens typically only allow us to invest in the best 20% of the possible higher education programs.

edly analyzes the historical outcomes of students as captured in data about the schools, the area of study, and geography. We look for an attractive relationship between the tuition of the program and the student outcomes. The higher the “ROSI” (Return on Student Investment) the more attractive it is to edly.

Important historical outcomes we consider include:

•Graduation Rates
•Time to employment
•Starting Salaries
•Salary Increases over time

edly works with the schools  to ensure there is alignment of interest among schools, students, and investors. We should all succeed if students succeed.

edly seeks high impact investments – we believe that students of all backgrounds can be successful with the right access to education and resources and therefore we will NOT use wealth-based credit scores such as FICO. We believe our own methods are more predictive of success than credit scores.

Types of Schools We Like

Ways Investors are Protected

  • Universities

    The top 20% of universities offer good investment value. We then look further for programs which have very high ROSI or ones which have a very high social impact. We make it clear to investors which metrics apply to which programs in our offerings.

  • Technology / Computer Programming

    There is a significant shortage of workers with computer skills compared with the demand for them. A niche industry has built up to train qualified students in the latest coding languages. Upon successful completion of these programs, graduates typically have success finding good paying jobs in the technology industry. Because these programs are very focused, they are short and the tuition costs are low compared with the student salary outcomes.

  • Industrial Skills

    There is a massive shortage of skilled technical workers in a variety of industrial sectors including Welding, Automotive Repair, Electricity, Airplane Manufacturing, HVAC, Pipefitting, and more. Completion of a top program is highly likely to result in high-salary employment.

  • Healthcare

    This high growth sector is constantly in need of all kinds of skilled workers and workers can continuously improve their salaries by adding more skills and certificates. Skilled healthcare workers are very employable.

  • Direct Investment in the Assets

    edly makes investments in the actual ISA assets (contracts with the students) or in loans to schools backed by ISA assets. This gives us the contractual right to the cash flows generated by the students upon employment.

  • Experienced ISA Servicers

    edly hires a Servicer who collects the payments from the students. edly only works with servicers it believes can effectively service the assets.

  • School ‘Skin in the Game’

    edly insists on school “skin in the game” – we will only make partial advances to schools and then our investors are in a senior position to the schools until investors have received a preferred rate of return. In order for the schools to get their full tuition, students must have good outcomes and investors must have good investment returns. Schools with poor outcomes are avoided or removed from our program.

  • Bankruptcy Remote Structure

    Investments are held in a bankruptcy-remove vehicle and edly never holds investor cash. Cash returns from investments are distributed to investors monthly.

  • Monthly Distribution Reporting

    Investors receive monthly statements of their investment returns and they may view their historical statements at any time on the edly platform using their secure login credentials.

Start investing once you are reviewed and approved by edly – first, fill out the investor qualification questionnaire.