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

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.

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

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.

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.
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