Give students the confidence to invest in their education with an Income Share Agreement (ISA).
With monthly payments based on their income, your students know they’ll be able to afford their education.
An ISA allows students to pay back a fixed percentage of their monthly income 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 Income Share Agreements work in practice.
Katie is a prospective student who needs help paying for school. She is committed to furthering her education but, as a single mother working to make ends meet, she cannot afford to pay upfront.
Instead, Katie signs up for an Income Share Agreement, which her school offers through Leif.
Under her ISA, Katie is able to attend school at no upfront cost, in exchange for a percentage of her income post-completion.
Katie's school lasts 14 months in length - for the next 14 months, Katie is focused on learning with no tuition-related stress to hold her back.
Upon school completion, Katie starts a job making $60,000. Because her annual income is above the minimum income threshold, Katie begins paying 7% of her income on a monthly basis towards her ISA.
Katie continues to advance in her career and make ISA payments on a monthly basis. In time, Katie's ISA 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 ISA, students owe nothing.
Affordable payments
Students are only obligated to pay when they have an income that allows them to comfortably do so. During periods in which a student is below the minimum income threshold, ISA payment is paused.
No required upfront costs
Students are able to focus on their education, without financial barriers.
Maintain focus
Trying to manage ISAs in-house is difficult. Leif's comprehensive ISA solution allows school partners to focus on what they do best and 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.