Income Share Agreements: Market Structure, Communication, and Equity Implications of a Student Loan Alternative. Research Report. RR-A2649-1

Autor/inn/en	Zaber, Melanie A.; Steiner, Elizabeth D.; Gebremariam, Hana; Spears, Asya; Tariq, Zohan Hasan; Carman, Katherine Grace
Institution	RAND Lowy Family Middle-Class Pathways Center
Titel	Income Share Agreements: Market Structure, Communication, and Equity Implications of a Student Loan Alternative. Research Report. RR-A2649-1
Quelle	(2023), (36 Seiten) PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Monographie
Schlagwörter	Income Contingent Loans; Postsecondary Education; Student Loan Programs; Loan Repayment; Paying for College; Language Usage; Contracts; Decision Making; Minority Group Students; Low Income Students; Disproportionate Representation; Educational Benefits; Risk; Program Effectiveness; Access to Education; Communication (Thought Transfer); Equal Education + Suchen Sie Ihr Suchwort? Post-secondary education; Tertiäre Bildung; Studienfinanzierung; Sprachgebrauch; Vertrag; Decision-making; Entscheidungsfindung; Bildungsertrag; Risiko; Education; Access; Bildung; Zugang; Bildungszugang; Communication; thought; Kommunikation; Gedanke
Abstract	Postsecondary education is a key pathway to economic mobility for many Americans, but financial challenges often make it difficult for learners to pursue and complete their education. Obtaining financing for postsecondary education can be a barrier to access for some students. The process is complicated, and many programs are ineligible for traditional student loans. One alternative postsecondary financing approach with broad potential use is an income share agreement (ISA). Under an ISA, the learner promises a share (income percentage) of their post-completion income to a funder for a set period (repayment term) in exchange for immediate money for school. ISA payments are only required when the learner's earnings exceed a set amount (i.e., when earnings are above the income threshold). Although ISAs can be beneficial, not much is known about how they function in practice. For example, there are no industrywide requirements for what information ISA-offering institutions provide to learners. There are few regulatory safeguards to prevent the use of potentially misleading language in ISA documentation. The number of postsecondary institutions offering ISAs is unknown, as are the characteristics of these institutions. The authors of this report aim to fill some of these gaps. Using a novel dataset that they compiled to describe the ISA market, the authors examine how ISA structure, implementation, and communication vary; analyze the language used to market ISAs; and assess implications for systemic inequities. This report provides their findings and recommendations for federal and state policymakers, financial aid professionals and learners, and ISA-offering institutions. [For a related tool, "Decoding Income Share Agreements: A Resource for Learners and Financial Aid Professionals. Tool. TL-A2649-1," see ED630692.] (ERIC).
Anmerkungen	RAND Corporation. P.O. Box 2138, Santa Monica, CA 90407-2138. Tel: 877-584-8642; Tel: 310-451-7002; Fax: 412-802-4981; e-mail: order@rand.org; Web site: http://www.rand.org
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2024/1/01