Income Share Agreements (ISAs) are a type of student loan that allows individuals to fund their education or training by promising to repay a fixed percentage of their future income for a set period of time. ISAs have gained popularity as an alternative to traditional loans, but the Consumer Financial Protection Bureau (CFPB) has classified them as student loans. The terms of an ISA can vary, but typically include factors such as income share percentage, salary floor, payment cap, and repayment term. ISAs are best used to cover small funding gaps and are worth considering if other forms of financial aid have been exhausted. However, it is important to compare offers from ISAs with traditional student loans to determine the best funding option for your situation.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Income Share Agreements | Alternative funding for college | More widespread use and acceptance | Rising college tuition costs and student loan debt crisis |