Provide income-contingent financing with fixed, predictable monthly payments through a Contingent Payment Plan (CPP).
Give students the flexibility to plan their expenses ahead of time and spread tuition costs over fixed-monthly payments when they are in well-paying jobs.
A CPP allows students to pay back a fixed monthly amount after their program ends. Payments are only made when the student is employed above a minimum income threshold. Payments continue for a fixed number of months or until the total amount paid reaches a predetermined maximum.
Let's use an example student journey to illustrate how Contingent Payment Plans work in practice.
John is a prospective student who needs help paying for school. He recently lost his job so he cannot afford to pay his tuition upfront, but he is looking to improve his skills and land a higher-earning role.
John signs up for a Contingent Payment Plan, which his school offers through Leif.
Under his CPP, John is able to attend school at no upfront cost, in exchange for a fixed monthly payment amount which he only has to pay if he makes above a minimum income threshold.
John's school lasts 5 months in length - for the next 5 months, John is focused on learning with no tuition-related stress to hold him back.
Upon school completion, John starts a job making $40,000. Because his annual income is above the minimum income threshold, John begins his fixed monthly payments towards his CPP.
John continues to advance in his career while paying for his CPP on a monthly basis. In time, John's CPP obligation is fulfilled!
Benefits
Downside protection
Outcomes-based products demonstrate a program's commitment to student success; if a program doesn't deliver on the expected outcomes outlined in the CPP, students owe nothing.
Predictable, affordable repayments
Monthly payment amounts are clearly defined from the beginning. Students are only obligated to make monthly payments when they have an income that allows them to comfortably do so.
No required upfront costs
Students are able to focus on their education while it is happening, without financial barriers.
Maintain focus
Trying to manage CPPs in-house is difficult. Leif's comprehensive CPP solution allows school partners to focus on what they do best. Leave the rest to us.
Align incentives
Students feel reassured when their schools have skin in the game. Demonstrate program quality and outcomes through the alignment of school incentives with student success.
Drive enrollment and student success
Expand program reach and help set students up for success by removing upfront, financial barriers.