For example, the San Diego Workforce Partnership provides information on all programs or scholarships that may initially be requested, which cannot be costly for students, and then asks all ISA owners to meet with a consultant and consider all options for a few days before signing the ISA agreement. For a number of higher income participation agreements, the most exciting innovation to fund a university degree has been highlighted. Supporters argue that the funding method gives the school more responsibility to help students succeed, and offers an alternative to credit and debt. (I want colleges to have “skin in the game” to find out if students are succeeding.) However, critics say the model could be dangerous for several reasons: future spending is difficult to predict, schools may prioritize giving ISA students who are more likely to succeed, and students could end up paying far more than education fees if they end up with high incomes. ISAs differ from normal student credit programs in that there is no capital or interest payable and each agreement is based on the individual basis. Students can benefit from a limit of $10,000 per ISA with a limit of two ISAs per calendar year. ISAs vary on their end date, depending on the number of payments required, the conditions indicated or whether students have reached the “payment limits” set by twice the amount originally granted. Contracts require students to repay a portion of their future income for a number of years, instead of taking out student loans to meet unmet financial needs. The concept was first tested in short-term programs such as bootcamp coding, but it is also increasingly advanced as an option for students in traditional colleges. In smaller institutions such as Messiah College, which is located in rural Pennsylvania, administrators view income-involved agreements as a tool to help a segment of students fill aid gaps after reaching the limits of federal grants and loans. When the program was officially launched in Messiah last fall, nearly half of the approximately 40 participating students were newcomers. Walker said for some of these students that the option of entering into an income participation agreement was taken into account in their decision to enroll.
The Lumina Foundation announced in July that it was funding a study to measure the impact of several revenue participation programs, including programs offered by the University of Utah, Colorado Mountain College and the San Diego Workforce Partnership. Percent of monthly income: 3 percent per ISA.