Student Loan Debt 2015: Income-Share Agreements Let Investors Buy Stock in Students, Could be New Way to Pay for College
- November 27, 2015
- Posted by: Kerry Schneider
- Category: Income Share Agreements (ISAs)
From: International Business Times
By: Tim Marcin
A different way to finance a college education has begun to gain traction and could provide a fresh alternative to student loans, which plague many recent graduates and the U.S. economy as a whole. Purdue University this week took a step toward exploring income-share agreements, in which investors pay for a student’s education in exchange for a percentage of future earnings. The move by the Indiana school adds to the momentum behind the alternative to private student loans.
Purdue plans to partner with Vemo Education, a Virginia financial services firm, to look into the use of income-share agreements, which are commonly called ISAs, to help students pay for their educations, the Washington Post reported Friday.