The Progressive Case for Income Share Agreements
- February 7, 2017
- Posted by: Kerry Schneider
- Category: Back a Boiler, Income Share Agreements (ISAs), Investors
From: Real Clear Education
By: Daniel Pianko and Michael B. Horn
The specter of high college costs deters far too many low-income students and families away from higher education. Perhaps with good reason: over 20 percent of federal aid comes in the form of a parent co-signed loan. But few students from disadvantaged backgrounds have such a co-signer. And if they do, that low-income co-signer is on the hook for the total value of the loan. As it turns out, our loan-based system of student aid—designed to unlock the democratic promise of higher education—cares a lot more who your parents are than what your major is.
In recent months, loan alternatives, dubbed Income Share Agreements (or ISAs), have piqued the interest of policymakers and pundits bent on controlling college cost and leveling the playing field for low-income students. Purdue University’s “Back a Boiler” program… Click here to continue reading.