What is an Income Share Agreement?

An Income Share Agreement (ISA) is a contractual agreement between you and your school which enables you to attend the educational program without paying up front tuition. In exchange, you will repay a fixed percentage of your income for a fixed period of time.

| While ISAs for different schools might differ in numerical values for their most important terms, the functionality of those remains constant for all

${color}#fc5c66 Income Share Rate: Describes the % of gross income you pay back during the repayment period. The income share rate is fixed and will stay constant during the lifetime of your ISA.

${color}#fc5c66 Repayment Period: Describes the duration under which you repay a percentage of their income. Most ISAs have a duration between 12-48 months.

${color}#fc5c66 Repayment Cap: Is the maximum amount you can repay under the ISA. Usually the repayment cap is a 1x-2.5x multiplier of the base tuition.

${color}#fc5c66 Salary Floor: Describes the threshold your income has to exceed to start their repayments. The floor can vary per program but will stay constant over the lifetime of the ISA.

Question 2

When is my ISA concluded?

Accepted Answer

ISA repayments adjust to your income development, therefore ISAs can be satisfied at different points in time.

Your ISA is completed if one of the following things has happened:

${color}#fc5c66 You have completed all monthly payments

${color}#fc5c66 Payments have reached the Repayment Cap

${color}#fc5c66 You have accumulated the maximum of deferment and repayment months

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