Saving For College: Student Loan Alternative
Saving for College looked at our ISAs as an alternative to traditional student loans and discussed the main differences between Income Share Agreements and other types of education funding.
The Stride Difference
Traditional student loans come with fixed payment terms where a student has to continually make payments no matter what. Even if they’re earning a little or don’t have a job, payments must still be made, unless they qualify for a deferment or forbearance. This can present a problem for many people where they may have difficulty repaying their student loan on top of other expenses. And in some cases, this can lead to borrowers defaulting on their student loans. Stride is structured differently from student loans because there are no fixed payments. Instead, graduates pay an income share during the payback period to fulfill their ISA obligation. Under this financial structure, the amount they earn each month directly determines how much their monthly payments are.
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