Student Lifecycle: Story of Kayla
College Financing Decision
Kayla is a college junior, majoring in accounting, who has an unmet financial need of $10,000 going into senior year. Luckily, her college has an ISA program and Kayla chooses a $10,000 ISA in exchange for 4.5 percent of her income for six years after graduation. Because the ISA is based on income and has a minimum income threshold, Kayla knows that she’ll only make affordable payments if she succeeds after graduation.
Retention + Graduation
Because Kayla’s college offered an ISA, she was able to stay in school and graduate without fear of inability to pay upfront. The ISA option gave Kayla the flexibility to graduate on time and complete her degree.
Kayla graduated and went on to get a job with an accounting firm, where she’s able to make the affordable payments back to her school. Because the ISA payment is based on her income, doesn’t accrue interest, and can only ever be paid down, Kayla has peace of mind and financial security in knowing that her payments will always remain affordable.