The University of Utah has joined the small club of major research universities offering income-share agreement (ISA) financing options for their students.
Reported by Education Dive, University of Utah students can receive up to $10,000 per semester in exchange for 2.85% of the student’s income after graduation for up to 10 years depending on their total loan and their academic major. These re-payments can be freezed if the student chooses to attend graduate school or has a full-time job that pays less than $20,000 a year.
The goal of ISA’s are to create a financially risk-free way for students to finance their education, yet are still a little-used option, despite being fairly popular for coding bootcamps, where the high potential income of new graduates creates a win-win scenario for both students and the institution.
The takeaway? Are income share agreements a smart financing option to consider at our institutions, or do we think some of the existing financial models are actually in our students’ best interest?
May you continue to fight the good enrollment growth fight at your institution today, and we’ll see you again tomorrow.
Have an Amazon Alexa-compatible product? Subscribe to our Enrollment Growth Briefing.