Unlike student loans, there is never accrued interest.
How ISAs work
There is no fixed interest payment – ISAs are flexible in that students pay a fixed percentage of their income, when – and IF – they are earning above a minimum threshold amount.
Payments are made over a fixed payment term and are designed to be affordable.
The total amount of possible payments over the term of the ISA are capped at an amount which is usually around 1.5 times the amount of tuition.
ISA providers require schools to align their financial incentives with students and investors. This “skin in the game” includes financial incentives to graduate students and help them find good jobs.