Keeping Income Sharing Agreements Fair and Accountable

If you haven’t seen the letter that we cosigned, we recommend you check it out: We have the entire letter at the end of this blog post. If you have, we’d like to share the “Why” behind our support of this statement.
We believe Income Sharing Agreements (ISA) are part of the future of student funding for their education. When properly set up, ISAs have incredible benefits:
- ISAs tie student success to school success. We invest in our students by providing them an education and they only contribute back financially if they are professionally successful.
- ISAs help expand education to more students who may not otherwise be able to afford a post-secondary education. Since ISAs are not loans, people who come from disadvantaged backgrounds are able to achieve success relative to their capability or drive, and not to their ability to secure a loan.
- ISAs eliminate the lifetime of student debt. Because the repayment period is limited in time, after a certain number of payments have been made, the repayment ends regardless of the remaining balance.
- ISAs help us set a success floor. Until students hit a minimum income threshold, no payments are due.
But, as with anything that works this well, bad actors may appear. We’re proud of what ISAs can do, but in the hands of predatory lenders, we may just end up with Private Student Loan Debt 2.0: the exact opposite of our vision.
As a part of creating this letter sent to leaders of both parties and both branches of Congress to ask something simple, and honestly respectable, of any new industry: We want regulation that protects students. With ISAs, we’ve been able to serve an incredibly diverse population, with 60% of our student body being people of color. Also, with 37% of our student body as part of the first generation in their family to attend a post-secondary school, ISAs promote upward economic mobility. ISAs, combined with our blind admission process and unique curriculum, helps us break open the stereotypical racial and economic demographics of the tech workforce: As of today, 100% of our graduates find employment opportunities in three months at an average starting salary of $108,000.
We hope this letter in Washington helps spark bipartisan cooperation and support for regulation that protects our students of today and tomorrow.
The original letter, as sent to both branches of Congress, follows: