With income-share agreements, students don’t pay tuition when they start a program, but instead pay back a percentage of their earnings for a period of time after graduation. But schools still need operating capital to provide the educational programming in the first place.Wall Street thinks it has found a solution in an online marketplace for ISAs, called Edly.
As CFO, Holberton’s concept of “no upfront tuition” is particularly important to me. In lieu of paying tuition, graduates of Holberton are only required to make payments if, and when, they obtain a high-paying job. Then, and only then, do they contribute a percentage of their salaries back to the school for a fixed term of 42 months. This kind of agreement—called an Income Share Agreement, or “ISA” for short—is growing in popularity within the education space.