Experiments With a New Way of Paying for College
- May 22, 2017
- Posted by: Kerry Schneider
- Category: Income Share Agreements (ISAs)
From: Inside Higher Ed
By: Doug Lederman
Colleges (and nontraditional providers) experiment with income-share agreements as innovation that could help some people afford education and training.
It’s a symptom of the current moment that ideas that might have some merit, or could help solve a problem, are prematurely described by advocates or policy makers (or, yes, journalists) as the “next big thing” before they have proven themselves effective. This is particularly true in the ed-tech space, but other sorts of purported innovations are susceptible to the same trend.
Consider the case of income-share agreements, which are having a moment and leading to articles like this recent one in The Atlantic, whose tagline says they “could solve [the] debt crisis.”
Income-share agreements are, described simply, a replacement for borrowing in which a student agrees to repay a portion of postgraduation income for a set number of years in exchange for an institution waiving all or part of their tuition…Click here to read more.