Income Share Agreement (ISA) Funding
Eastern Kentucky University will be one of the first universities in the commonwealth to offer Income Share Agreements (ISA), dubbed “Invest in Success,” an innovative tuition assistance program, to select juniors and seniors. The “Invest in Success” program will be implemented this semester in the nursing and aviation programs, two of EKU’s popular degree offerings.
“Invest in Success” represents a shared commitment between the university and the student to ensure their professional success.
“We believe in our programs and our graduates,” said Dr. David McFaddin, EKU interim president. “That’s why we’re taking steps to align the cost of college with the outcomes our students experience. We are committed to improving educational access, affordability and outcomes.”
In collaboration with the leading school-based educational ISA platform provider, Vemo Education, “Invest in Success” will provide an income-based financing alternative to traditional student loans. ISAs provide students tuition funding in exchange for a fixed percentage of future income for a defined and finite time.
A wide range of colleges and universities, including the University of Utah and Purdue University have recently launched ISA programs in their respective states.
“Student retention is a vital component of being a school of opportunity, and the ISA option gives students who have made significant progress toward their degree a better chance to graduate on time,” said Dr. Tanlee Wasson, vice president for student success and institutional effectiveness. “This is another tool for our students to use to earn their degree, keeping the door of opportunity open that they wouldn’t have without it.”
The “Invest in Success” program offers protection for students who are not earning money once out of college, or aren’t earning enough to begin the repayment. For students who earn high incomes after graduation, a payment cap ensures that payments never surpass an established, low percentage of the initial plan amount. At the same time, a minimum income threshold protects graduates from making any payments should their income fall below a certain level.
“This is an innovative program that will keep our students in qualifying programs from having to take out loans with less favorable terms or face having to drop out of college altogether,” said Elizabeth Ballou, executive director of enrollment management. “This is a low-risk alternative to traditional educational funding.”
“Invest in Success” ISAs will be available to rising juniors and seniors in the aviation and nursing programs in Fall 2020.