By Sydney Johnson
June 6, 2017
“Momentum is growing around ISAs,” says the authors of a report on how income share agreements could impact the way students pay for college in the future. The model, which requires students to pay a percentage of their salary back to a lender after graduating, has gained traction as more companies and universities have begun experimenting with the idea.
Whether or not that momentum is headed in a direction that will offer students a reliable alternative to debt, however, remains a question for many who study the private borrowing space.
The folks at Entangled Solutions, a research and consulting arm of the higher-ed incubator and investment firm, Entangled Ventures, have an optimistic approach in their recent report, “The Future of Student Aid.” The study overwhelmingly calls for investment in and support for ISAs, which Entangled Solutions principal consultant Michael Horn admits are in an “uncertain state” given the little research available on its outcomes.