Income Share Agreements - Good For Students or Investors?

Money For the Rest of Us

What are the pros and cons of income share agreements for partially funding higher education. Are investing in ISA's a viable opportunity?

Topics covered include:

• How do income share agreements (ISAs) differ from student loans for funding higher education costs.
• Are ISA's really a partial form of slavery or indentured servitude
• What are the components of an ISA contract.
• How adverse selection, differential pricing, moral hazard, and a lack of regulation pose challenges to income share agreements.
• What is an internal rate of return and why is it the best metric for estimating the return of investing in ISAs.
• How students should evaluate ISA's relative to loans.
• What are some pricing examples for specific ISAs
• What options exist for investing in ISAs.

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