Brenau commits to increase college access, affordability through income share agreements
GAINESVILLE, Ga. (Aug. 19, 2019) — Brenau University recently announced plans for a new financing option that will broaden college access by reducing the up-front cost of education.
In partnership with the leading school-based educational Income Share Agreement platform provider, Vemo Education, Brenau will join a growing number of colleges and universities across the nation in offering students an outcomes-based, income-driven financing option in ISAs. Through ISAs, Brenau students will receive tuition funding in exchange for a fixed percentage of future income for a defined and finite period of time.
Brenau is the first college or university in Georgia to start an ISA program, joining several across the country in utilizing ISAs to increase educational access, affordability and successful outcomes.
“Brenau provides students outstanding academic resources,” said David Barnett, executive vice president and CFO. “It’s only natural that we provide an outcomes-based model to help drive access and affordability. With ISAs, Brenau students will have the freedom to pursue their academic interests; they just won’t have to worry about unaffordable loan repayment or the other strains that come with traditional student loan debt.”
ISAs’ pay-as-you-succeed financing model has started catching on among higher education institutions seeking to create a student-friendly, results-based financing option. These programs offer unique protections including a minimum income threshold, below which payments automatically pause, and an ISA expiration date, which ends the obligation even if the student has paid less than the initial funding amount.
Vemo Education partners with colleges and universities to design, implement and sustain these student-centric, income-based financing solutions. Its financing model is designed to increase educational access and completion and to align cost with student success and outcomes.
“The broader social mission of ISAs is simple,” said Tonio DeSorrento, co-founder and CEO of Vemo Education. “Help schools like Brenau drive student success and positive outcomes. It’s inspiring to see how Brenau is using ISAs as a tool for increasing access, retention and completion.”