An Income Share Agreement (ISA) is a contract agreement between students and their school to pay a certain percentage of their future earnings for a fixed period after graduation in exchange for funds to pay for their education. Income Share Agreement (ISA) is a better alternative to students’ loans. Instead of students paying a fixed interest rate, they pay a fixed percentage of their salary, and this makes financing your education less risky. Many students who have started paying off their ISAs say that they weigh less heavily than loans. For this reason, we choose to extend this option of financing education to our students at Studemia. A student agrees to receive a loan from the institution to fund their education. In exchange, they agree to pay the institution a percentage of their salary after completion of the course. Studemia avails the ISA form of financing your education to any student who is in ISA eligible areas.
It is no surprise that financing your education can be very challenging. As the cost of college continues to rise for many students, schools and startups are beginning to come up with new ways to finance the cost of education. Income Share Agreements or ISAs is one of the methods of winning the attention of education providers and investors. Thus, allowing students at Studemia to learn without having to worry about their tuition fee; in other words, "we ensure that students join Studemia and stay at Studemia." Studemia has jumped to the Income Share Agreement train to help bright and ambitious students access our courses and jumpstart their careers. ISAs are designed to make our courses and your new career more accessible. Imagine if you were given a chance to entirely focus on your education and finding a successful career without having to worry about tuition fee? ISA allows you to study and get a paying job and later pay for your tuition when you are earning a minimum income threshold regardless of the job type or industry.
Our ISA deferred form of payment allows our students to focus on learning and not financing. For our qualifying students, an amount is credited towards the student's tuition. In exchange, the student agrees to pay an agreed-upon percentage of post-program income over a defined period. Hence the financial obligation of a student's education is tied to post-program income once the student meets the minimum monthly income threshold. Studemia aims at giving an equal chance to students from all backgrounds the opportunity to access and learn without having to worry about their tuition fee. By doing so, we help our students invest in their success, reaching their full potential and become the persons they were born to be. We believe that our students have different potentials and abilities, and we give them options to finance their education. Studemia is an online school, and so our ISA is currently available to students attending our online courses. Eligible students must be US citizens or permanent resident of 18 years of age and above.
This is the cost of education provided by the school or the difference between the cost of education and the family's expected contribution, including alternatives such as loans.
Refers to the agreed-upon income share multiplied by the amount of the student's monthly gross income.
A person's total wage and self- employment income.
Term measured in months or years, during which a fixed percentage of earned income is paid. In the situation of underemployment or unemployment, the term may be extended, and the monthly payment will be $0.
This is the maximum amount paid by a student over the payment term under an income share agreement (ISA).
On enrollment in Studemia, students are required to make an initial down payment which may vary depending on the course. On completion of a course, our students are given a grace period in which no fee will be required. According to the grace period; students have up to 8 years – 96 months to make the 48 required monthly payments. After completion of the grace period, students will be required to pay 10 % of their monthly gross income if the graduate is earning a monthly gross income of at least $3,333.34 which translates to $40,000 annually. Payments will be made online, over the phone or through the mail. Graduates will receive a monthly bill for this amount before making the payment arrangements. For students who will not have made the minimum income threshold within the grace period, their ISAs balances will be waived after eight years if they did not earn at least the minimum monthly income threshold and will not be required to make the 48 monthly payments.
However, it is also important to note that our students will not be expected to make payments during months when their income is below the minimum income threshold. Our students will NEVER pay more than 1.5 times the tuition Credit Amount under the ISA inclusive of the initial payment. Students under the ISA need to complete their studies. This is because you will still be responsible for your ISA payments even if you withdraw from the program. However, if you are eligible for a refund, under the Studemia refund policy, you will receive your refund, and we will reduce your total ISA amount by the refund amount and lower your payment cap to match. You will be required to pay the usual 10 % of your monthly income meets the minimum threshold. Our students will be required to secure and lock their seats with an initial deposit. This amount is refundable if our students to do not get a job within six months of graduation and they comply with all the terms of our Money-Back Guarantee.
ISAs are an excellent option to look at because there is no interest rate. So,