How does an income sharing agreement differ from a loan?
Unlike a traditional student loan, an ISA has no interest and recipients agree to pay a constant percentage of their income for a set payment term. In our model recipients repay at a fixed percentage of 6.5% of their income for 5 years. All payments go towards financing future training recipients.
What are the benefits of this program?
When you fund your education with an ISA, you can focus on succeeding in school and pursuing the career path that makes the most sense to you. Your payments adjust with your income so they are always affordable. Unlike a traditional debt-based option, such as a student loan, an ISA has no interest and you will not be obligated to pay a fixed amount over the term of the agreement. Instead, since your payments will adjust with your income and you could end up paying more or less than the amount advanced by the fund
Am I required to fully pay the money that was given to me under the ISA?
An ISA recipient is simply required to pay the agreed upon percentage of post-graduation income for the prescribed term of the contract. After making successful payments over that term, no additional payments are required even if they have paid less than the amount of funding they received.
What are the risks to students?
The amount of payment is based on income, so if a student commits to an ISA and earns a high income after graduation they may pay more to the fund than they would have with conventional debt. However, our ISA caps the total amount paid at 2.5 times the amount received.
How will I receive my ISA funds?
Funds will be sent directly to your training provider and will be processed through its student accounts office.
What is Lumni and how will I keep track of my ISA?
Lumni is a secure, student-friendly ISA application and servicing partner. Lumni provides a simple online portal and student managers to help you with your ISA every step of the way, from sign up through repayment. The Lumni portal is where you'll go to keep track of funding, disbursements, record keeping, and repayment. And Lumni's dedicated student managers are reachable by phone, email, messaging, and skype -- so you'll always have someone to turn to when you have a question.
Following graduation, when does the ISA Fund payment plan take effect?
Students are afforded a six-month grace period after graduation or the commencement of employment before payments are required.
ELIGIBILITY AND APPLICATION
Do I need a cosigner to take an ISA?
There is no cosigner requirement to participate in this program.
Am I required to work in a particular field after school?
There is no requirement that you work in a particular field or that you work at all. The ISA is designed to enable you to pursue the career path about which you are most passionate.