An Income Share Agreement (ISA) is an agreement in which a student receives an upfront payment for tuition and, in return, agrees to pay the company a percentage of their income for a set number of payments.
It's a friendlier form of student financing that puts students and their funders on the same side. It also ensures students can always afford their payments by basing them on a percentage of income rather than a fixed payment amount.
What a Stride ISA might look like
Kaya Needs Help Paying for Grad School
Let's say Kaya needs $10,000 to go to grad school for nursing. She's thought about student loans but doesn't feel comfortable being tied to fixed payments after graduation. She comes across Stride and finds that their ISAs check all her boxes. She's not hampered by her family's credit score, the payments are flexible, and she knows she'll get the support she needs because her lender only succeeds when she succeeds.
Kaya Signs Her ISA
Stride funds the $10,000 she needs for tuition and, in exchange, Kaya agrees to pay back 3% of her income (no matter how little or how much) for 6-8 years. Because her payments are based on a percentage and not a fixed amount, she knows she'll be able to afford her payments. That allows her to focus on what matters: her studies.
Every ISA is Unique
It's important to note that ISA percentages and term lengths are unique to each student. To see an estimate of what your Income Share Agreement might look like, sign up and schedule a call with one of our friendly student reps.
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