4 ms·
Can someone add some of the missing context about the ISA experiment mentioned in the tweet thread?
by daenz 5y ago
Can someone add some of the missing context about the ISA experiment mentioned in the tweet thread?
- phphphphp 5y agoit’s a colloquialism, “the experiment” refers to the collective belief that ISAs had potential risk to revolutionise funding for education etc.
- matsemann 5y agoAnd ISA being..?
- eatonphil 5y agoIt's in the title of this post: income share agreement.
- matsemann 5y agoAnd that explains nothing of the concept unless you already know what it means. Share income in what context? Other people answered it, thankfully.
- phphphphp 5y agoIncome Sharing Agreement, I.e: what bloomtech (fka Lambda) use. No payment upfront, but the institution gets a cut of income above $x until the repayment amount is met.
- shagie 5y agoAn an article about them - https://www.nerdwallet.com/article/loans/student-loans/income-share-agreements-what-students-should-know-before-borrowing https://www.nerdwallet.com/article/loans/student-loans/incom... An example contract - https://www.purdue.edu/backaboiler/disclosure/contract.html https://www.purdue.edu/backaboiler/disclosure/contract.html
- legitster 5y agoInstead of taking out student loans, enter an agreement to share your income to fund the ISA and pay for future recipients.
- bpodgursky 5y agotbh the distinction feels kind of artificial given how many student loans are "paid off" entirely via income-driven repayment plans.
- s1artibartfast 5y agoThe main distinction is that traditional student debt isn't conditional or easy to discharge. There is a sizable portion of individuals who do not complete or utilize their degrees and are thus left with low income, large amounts of debt, and little prospect of paying it off. ISAs solve this problem.
- deleted 5y ago[deleted]