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April 29, 2022

A Thought Piece on Racial and Gender Differences in Income Share Agreement Repayment Patterns

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Darius Goldman

News and Updates|Income Share Agreements

This report from JFF indicates a bright future for ISA recipients and alternative financing borrowers. 

Jobs for the Future (JFF) drives the transformation of the American workforce and education systems to achieve equitable economic advancement for all.

Findings from their report shine a light on the racial and gender differences in Income Share Agreement terms that can significantly impact how much students prepare for college.

The findings in Jobs for the Future’s report present opportunities as Income Share Agreements gain momentum. I think this report shows a bright future for Income Share Agreements and alternative financing and will help bring about a much-needed change to the student lending system.

Limitations of the report 

It’s important to note that the report outlines some caveats and limitations to their findings. They mention that additional research is needed.

Income share agreements (ISA) have garnered significant excitement as a new tool to finance postsecondary education.

Using a proprietary data set of ISA contract holder records, JFF analyzed differences in contract terms and repayment patterns across demographic groups, finding no consistent or significant favorability toward one racial/ethnic or gender group over another.


While this data set is far more granular and detailed than what has been used in past research, it still has limitations that require JFF to present its findings with significant caveats. They acknowledge that more research is needed,  such as better data about students’ prior income, the amount financed in the ISA, the length of the intensity of educational programs, and other characteristics. 

ISAs showed no significant favoritism towards any one group 

According to the report, ISAs appear to neither disproportionately advantage nor disadvantage any racial and gender groups. In addition, they tested the relationship between contract terms and education providers and differences between various student groups focusing on race/ethnicity and gender. 

“We did not find any consistent and significant relationships in contract terms or differences in student repayment patterns across racial/ethnic and gender categories that would imply a positive or negative impact on racial/ethnic and gender equity.”

JFF Report

This spells a positive and equitable future for ISAs and alternative financing. ISAs can be a great way to open access to those that are a part of marginalized groups and balance the risk and reward of higher education between schools and students. 

Quality Education Matters

While ISA program design and quality of education matter, this report from JFF indicates a very bright future for ISA recipients and alternative financing borrowers. 

If you’re interested in offering a fair and worthwhile Income Share Agreement at your institution, download our brochure on our partner’s page. 

About the author

Picture of Darius Goldman

Darius Goldman

Darius Goldman is the Founder and CEO of Meratas, a fintech infrastructure company empowering Learning Institutions with turnkey software for smarter, simpler, educational financing. As CEO, Darius leads the overall vision at Meratas, where he is particularly focused on product development and policy issues. Before founding Meratas, Darius was a corporate attorney for over 12 years, where he most recently served as practice group leader and head partner for the special situations group at the international law firm Katten Muchin Rosenman LLP. Outside of the office, you’ll find Darius spending time with his three kids, splitting wood, and making the frequent Costco run.
This post was prepared by the author, in her/his personal capacity. The views expressed are her/his own, and do not necessarily reflect the views of Meratas Inc.
The information contained in this site is general in nature and should not be considered to be legal, tax, accounting, financial or other professional advice. In all cases, you should consult with professional advisors familiar with your particular situation prior to making any important decisions. Although every effort has been made to provide complete and accurate information, Meratas Inc. makes no warranties, express or implied, or representations as to the accuracy of this content. Meratas Inc. assumes no liability or responsibility for any error or omissions in the information contained herein or the operation or use of these materials. Copyright 2022

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