Beth Akers
October 2014 | Brookings

In response to growing concerns over the issue of higher education finance, policy makers, advocates, and entrepreneurs have developed and proposed an array of solutions to address the shortcomings of our current system. Income Share Agreements (ISAs) are one such proposal that deserves more attention. ISAs allow students to raise funds to pay for their degrees by selling “shares” in their future earnings. This solution is sometimes dismissed as a gimmick, akin to indentured servitude, despite the fact that it has the potential to offer improvements over traditional loans in terms of shielding students from risk and providing information about quality, two widely held objectives among advocates and policy makers.

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