If you are worried about those big student loans… there might be an alternative!
Over two dozen Universities have decided to give “income share agreements” a try, a program to allow you to skip the student loans for a promise you will share a portion of your future salary.
IN THIS PODCAST: Lauren Wobby, Chief Financial Officer at
Norwich University
in Vermont, explains why they became the latest to offer this financial aid to their students.
Wobby says, “…I think 10 years from now everyone will think, ‘they didn’t always have income share agreements? They will be ubiquitous.”
In contrast with traditional loans, in which students will simply pay down the principal and interest until there is nothing left, students with income share agreements pay back a percentage of their salary for a set period of time. Those touting the programs say they give colleges greater incentive to help students find high-earning jobs after graduation, because a higher salary means the school may recoup its investment in a shorter period of time.
For some students, income share agreements are seen as less risky, especially if they end up in a lower-paying job or struggle to find work after graduation. While students are unemployed or earning below a certain threshold they don’t have to pay anything back
…
Photos submitted by Norwich University
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