March 2019 | Forbes
As Income Share Agreements (ISAs) gain popularity as a way to finance postsecondary education and workforce training, they are also gaining bi-partisan political support.
Organizations including the Aspen Institute, the politically left-of-center Progressive Policy Institute and the conservative American Enterprise Institute have lauded their benefits. And as lawmakers consider rewriting higher education policy, income share agreements have gained prominence among solutions for students struggling to pay for college.
For proponents, one of the most appealing attributes of ISAs is their potential to cultivate college aspirations among populations that are too often deterred by the cost. Perhaps with good reason. Research from Vanderbilt University in 2018 found that students who are reluctant to borrow money for college (referred to as “loan aversion”) may find alternative financing mechanisms, such as ISAs (which require no principal commitment) more appealing.Read More