Is federal legislation coming for income share agreements (ISAs)?

Is federal legislation coming for income share agreements (ISAs)?

Reported by Education Dive, new legislation coming out of the senate is seeking to better define the scope of ISAs, which are intended to decrease a student’s upfront payments and overall debt risk by having students repay their loans based on a percentage of their post-graduation income. This new legislation would cap the maximum repayment income percentage at 20%, exempt students making less than two times the federal poverty line from repayments, and allow ISAs to be discharged during bankruptcy.

The takeaway? Will these legislative mechanisms help ensure the promise of ISAs remain as student-centric as the marketing behind them, or become so financially restrictive they disincentivize colleges altogether from pursuing this model?

May you continue to fight the good enrollment growth fight at your institution today, and we’ll see you again tomorrow.

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Eric Olsen

Eric brings more than a decade of award-winning creative brand development, marketing analytics and higher education experience to Helix Education. Eric is a graduate of Bradley University and earned his MBA at Lewis University.