Often, an ISA will have a minimum income threshold, so that you pay $0 if your income is lower than, say, $25,000 per year. After borrowing the maximum amount in federal direct subsidized and unsubsidized student loans, students may turn to private student loans or federal PLUS loans. After borrowing the maximum amount in federal direct subsidized and unsubsidized student loans, students may turn to private student loans or federal PLUS loans. Comparing Income Share Agreements and Federal Student LoansWhile the vocabulary used may differ, the core feature of ISAs and student loans is the same: The student must pay a portion of their income after graduation for a certain amount of time. Comparing Income Share Agreements and Private Student LoansOn the other hand, private student loans do not have the same consumer protections as federal loans, and ISAs may be a better alternative.

Source: Forbes July 30, 2021 12:04 UTC