Background

General Assembly (GA) is the leading provider of experiential education in the fields of coding, data, and design. Founded in 2011, GA was designed to provide cutting-edge education that would transform students’ careers while collaborating with companies to evaluate, train, and develop workforces. Since launching its first campus in New York City, GA has expanded worldwide and currently operates 20 campuses in six different countries.

GA prides itself on a record of expanding access to training that breaks down barriers to employment, diversifies the workplace, and closes skills gaps. These values led GA to explore an income share agreement (ISA) program in order to increase access to education. The Catalyst program was launched in August 2018 and aims to serve 5,000 students over the course of the next three years.

Program Design Overview

The Catalyst program includes the following terms for ISA participants in exchange for upfront tuition funding:

  • 48 monthly payments of 10% of income once earned income exceeds $3,333,33 per month (equivalent to $40,000 annually)
  • The total ISA includes a payment cap of 1.5
    times the total tuition

 

 

  • The ISA will end after a 48 month payment term or
    96 month payment window, even if less than the amount financed, or nothing at all, has been paid

Important Student Protections

01.

A minimum income threshold so that graduates who aren’t working for any reason don’t have to make payments, and to ensure that students aren’t dissuaded from becoming entrepreneurs

02.

A fixed percentage of income of a graduate’s salary, so payments should always be affordable

03.

A payment window that serves as the end of the student’s payment obligation, even if the student has paid less than the initial funding amount or nothing at all

04.

A payment cap to ensure a reasonable maximum payment amount

We believe that past credit history is not a predictor of future career success and earning potential. Vemo Education is our trusted and critical partner in making ISAs a tool for increasing educational access and affordability.

Scott Kirkpatrick President & Chief Operating Officer

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