Investing in Value, Sharing Risk: Financing Higher Education Through Income Share Agreements
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TR Number
Date
2014-02-01
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Journal ISSN
Volume Title
Publisher
American Enterprise Institute
Abstract
Income Share Agreements (ISAs) are financial instruments for the private financing of higher education. With an ISA, an investor or other organization provides a student with financing for higher education in exchange for a percentage of the student’s future income for a defined period of time after the student finishes school. Unlike a loan, there is no principal balance to repay with an ISA: depending on the level of success after school, the student may ultimately pay more or less than the amount financed. This report explains in deep the pros and cons of the Income Share Agreements.
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Keywords
income-share agreements, student loans, education, higher--United States--costs