Companies Offering Income Share Agreements: The Future of Education Funding
Looking for a new way to fund your education? Income share agreements (ISAs) have emerged as a popular alternative to traditional student loans. Unlike debt-based financing, ISAs allow students to pay for their education by agreeing to share a percentage of their future income with investors or educational institutions. This innovative financial model is gaining traction with both students and investors, and there are now several companies offering ISAs. In this article, we’ll take a closer look at some of the leading companies in the space.
1. Lambda School
Lambda School is a coding bootcamp that offers ISAs to students. With Lambda School, students can enroll in a full-time, online coding program and pay no upfront tuition. Instead, they agree to pay 17% of their income for two years post-graduation, but only if they’re making at least $50,000 per year. Lambda School only makes money if their graduates are successful, which aligns their interests with those of the students.
2. Vemo Education
Vemo Education partners with colleges and universities to offer ISAs directly to students. Vemo designs and manages the ISA programs on behalf of the educational institution and provides investment capital to fund the program. Students can enroll in an ISA program and receive funds to pay for tuition, fees, and other educational expenses. After graduation, they agree to share a percentage of their income for a set number of years.
3. Leif
Leif is a marketplace for ISAs that connects investors with students. Leif partners with schools and bootcamps to offer ISA programs to students, and then matches those students with investors who fund their education. Leif provides the infrastructure for ISA programs and manages the payment process, making it easy for schools, investors, and students to participate.
4. Purdue Research Foundation
The Purdue Research Foundation offers Back a Boiler, an ISA program for Purdue University students. Back a Boiler allows students to receive funding to cover tuition, fees, and other educational expenses in exchange for a share of their future income. The program is run entirely by Purdue, with no outside investors or partners involved.
5. Edly
Edly is another marketplace for income share agreements. Edly partners with schools to offer ISA programs and connects investors with students. Edly`s platform allows investors to fund income share agreements and receive returns based on the future income of the students they fund. Edly provides support and management services for the ISA programs, ensuring that they are structured fairly and transparently.
In conclusion, income share agreements are an exciting development in education financing. They offer a promising alternative to traditional student loans, providing students with funding for their education without saddling them with debt. The companies offering ISAs are varied and innovative, from marketplaces connecting investors with students to institutions that design and manage their own ISA programs. As ISAs continue to grow in popularity, we can expect to see even more companies entering the space and offering new and exciting ways for students to pay for their education.