The ISA concept, which many describe as selling stock in yourself, is now an emerging hot topic within the higher ed financing debate.
An income-share agreement (ISA) is an alternative to using student loans to finance higher education. Rather than a loan, a student agrees to pay a percentage of their future income for a set number of years back to the investor, which could be a university that funds its own ISA or a pool of investors that has launched an ISA.
ISA provider 13th Avenue, which is currently talking to several institutions about setting up ISA pilot programs, has found that funding is a key challenge. “The schools are interested, but they are reluctant to fund the program so we are busy trying to raise money,” says Casey Jennings, chief operating officer.
A newly formed advocacy organization hopes to smooth the process for busy adults looking to attend college.
Today, with increased attention on student success and the long-term effects of unpaid accounts, institutions need to recognize the impact financial services staff have on recruitment and retention. It’s a shift to thinking more about the big picture.