4 ms·
Income Sharing Agreement - You go to school, possibly with a small stipend, and in return the school gets (say) 10% of the first 7 years of your income, possibl
by NortySpock 6y ago
Income Sharing Agreement - You go to school, possibly with a small stipend, and in return the school gets (say) 10% of the first 7 years of your income, possibly capped at a max repayment amount.
https://www.purdue.edu/dfa/types-of-aid/income-share-agreement/index.html https://www.purdue.edu/dfa/types-of-aid/income-share-agreeme...
- manfredo 6y agoI think this is another good model. Purdue is one relatively well-known university that offers this. What's crucial about an ISA (especially an ISA that only collects on income beyond a threshold) is that the university then has a direct incentive to actually improve students' employment prospects. Then again, the Lambda school ISA selling issue demonstrates the potential to eliminate this alignment of incentives. In universities, there's also the issue that colleges might only accept ISAs with students interested in majors with good employment prospects. But if we view university as an investment where the return is better employment, then this is working as intended.