Student and parent perspectives on higher education financing: Findings from a Nationally Representative Survey on income-share agreements

Income-share agreements (ISAs) are a new higher education financing tool meant to supplement or replace student loans. With an ISA, students agree to pay a set percentage of their future income for a set number of years in return for financing for their college educations. Because the private market for ISAs is small, little is known about the potential demand for the product. Will students and parents be receptive to ISAs or prefer them to traditional student loans? What would a core market for ISAs look like? What features of an ISA do potential recipients like or dislike? What type of student or family might seek out an ISA or opt to use one? To answer these questions and more, the American Enterprise Institute (AEI) commissioned a nationally representative survey of 400 college and high school students and 400 parents of current and future college students to assess their interest in ISAs. This report points out the main findings and conclusions.