Income Share Agreement (ISA) online schools allow students to attend online classes without paying tuition upfront. Instead, students agree to pay a percentage of their future income for a predetermined period of time after they graduate. This model of financing education has gained popularity in recent years, offering an alternative to the traditional student loan system.
The concept of ISA is simple: students attend online courses without paying tuition upfront. Once they graduate and start working, they pay back a percentage of their income for a specific period of time, usually between five and ten years. The payment percentage and period are agreed upon before the student enrols in the program. The amount paid depends on the student`s income, with higher earners paying more, and lower earners paying less.
The idea behind ISA is to make education more accessible to students who cannot afford to pay tuition fees upfront. It also ensures that students only pay for their education once they are able to do so. Furthermore, the model incentivizes schools to provide quality education, as they only earn when students earn.
One major advantage of ISA online schools is that they take the financial burden off students. Unlike student loans, where students are saddled with debt that they have to pay back regardless of their employment status, ISA payments are dependent on income. This means that if a student does not earn enough after graduation, they will not be required to make payments until they do.
Another advantage is that ISA online schools often have more flexible admission requirements. This is because they are more interested in students` potential to succeed than their ability to pay upfront. As such, they may admit students who would not be able to afford traditional tuition fees.
Critics of ISA online schools argue that the model is risky for students, as they may end up paying more than the cost of tuition over time. This is because the payment period may be extended if the student`s income is not high enough to cover the required payment. However, most ISA online schools have a cap on how much a student can pay, ensuring that they do not overpay.
In conclusion, ISA online schools offer a viable alternative to traditional tuition financing models. They provide accessibility to students who cannot afford to pay for their education upfront and incentivize schools to provide quality education that leads to gainful employment. However, like any financing model, students must carefully consider the terms and conditions before enrolling in an ISA program.