With college tuition and costs rising, students need a solution to pay – now more than ever. Luckily, a new kind of payment method is growing in popularity. It’s called an “income sharing agreement,” or ISA.
Unlike traditional payment plans, an ISA doesn’t require students to take out loans. Instead, the program covers the student’s costs upfront. Once the student joins the workforce, a percentage of their salary is then forfeited to pay the program back. This provides students with the financial flexibility during college that loans often restrict.
That being said, there are also downsides to an ISA. Students should research what they want their own futures to look like before they choose between an income sharing agreement and another form of payment.
To learn more about income sharing agreements, please click here.