What is the Income Sharing Agreement (ISA)?

An Income Share Agreement (ISA) is an innovative way to enable university students pay for their education. Qualifying for an ISA is not based on how much money a student has in the bank. Instead, it is based a student’s potential to earn in the future. ISA terms are flexible, which means that payment amounts vary depending on each applicant’s situation. An ISA can often be more affordable than a loan since the student pays a percentage of income earned. All students accepted to an educational institution that ALFC partners with are eligible to apply for an ISA.

ISA Advantages

Anyone can qualify, regardless of family income
Makes a brighter economic future possible through higher education
No assets or collateral necessary

Can be more affordable than a loan
Pay only a percentage of what you have, when you have it
Payments pause during unemployment, higher study or economic hardship

Spreads financing risk between students and investors
If a student succeeds financially, so do investors and fellow students
If a student struggles, the downside is shared



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