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.
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.
“The last thing colleges want to do is put a former student in collections,” says Harrison Wadsworth, executive director of the Coalition of Higher Education Assistance Organizations. But when internal efforts to collect tuition don’t work, it’s important to have somewhere to turn for help.
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.
Community colleges in two of California’s biggest cities have announced plans to substantially expand access to public education by offering residents
the chance to earn an associate degree for free.