Deferred Tuition Options

A Better Way to Pay for Your Education

Learn whether an Income Share Agreements (ISA) is the right option for you.  ISAs differ from personal  loans in important ways.

ISA Key Terms

  Income Share Agreement Amount

Income Share Agreement Amount

The amount funded towards your education.  

 Income Share Percentage

Income Share Percentage

The percentage of your income repaid after graduation, once you are gainfully employed.

 Annual Income

Annual Income

For repayment purposes, your annual income is determined using your pre-tax earnings .

  Monthly Payments

Monthly Payments

The actual dollar amount repaid each month. Although your Monthly Payments will  vary with changes in your earnings, the ‘percentage’ of your earnings stays the same. 

  Minimum Threshold

Minimum Threshold

ISA repayments are automatically paused whenever your monthly income is less than the Minimum Threshold.  Think of this as a “Floor”.  If you’re  earning less than the Floor, you won’t have to make any payments. 

 Payment Cap

Payment Cap

For high earners, the most you might have to pay is limited by the Payment Cap.  If your total monthly payments hit your Cap, your payment obligations stop, even if you made less than all Required Payments.

 Required Payments

Required Payments

This is the number of monthly payments you are required to make, but only when earning more than the Floor, (and you’ll never pay more than the Cap). 

 Payment Window

Payment Window

This is the outer limit on your payment obligations.  Even if you paid back less than the amount you received, your ISA will automatically terminate at the end of the Payment Window.

How it Works

Financing your education with an ISA in 5 steps

  1. Apply & Attend Your Program

1. Apply & Attend Your Program

Apply for your desired program through our e-application. 

  2. Graduate and Get a Job

2. Graduate & Start Your Career

With an ISA, interest does not accrue while you’re in school, unemployed or even under-employed.

So, you can focus on your studies without unnecessary distractions.

Once you land a job and are making above the Minimum Income Threshold, you will begin paying back your ISA, calculated as a percentage of your pre-tax earnings. 

  3. Begin ISA Payments

3. Built-in Deferment Benefits

Unlike traditional private loans, with an ISA, if you loose your job or are earning less than anticipated, your ISA payments will be automatically deferred, with no interest accrual.

   4. Your ISA is Satisfied

4. Your ISA is Satisfied

You can satisfy your ISA in one of three ways:

1. Make the required number of monthly payments.

2. Your total payments reach the Payment Cap.

3.Your Payment Window elapses (irregardless of how much you paid).

How to complete your ISA

The Income Share Agreement Journey: An Example ISA

To help illustrate all the best parts of an Income Share Agreement, we created a story. Let’s meet Lauren and see what her ISA journey looks like:

Lauren’s ISA

Lauren needs $20,000 to finish her last semester of college. She applies for an ISA for $20,000 in exchange for 10% of her income for 36 months after graduation and once she secures a job.

Student Retention

After graduation, Lauren is unable to get a full-time job at an accounting firm like she was planning. To make ends meet, she finds a job at Starbucks. Her yearly income is $20,000, since she used an ISA to pay for college she doesn’t have to make payments. Why? Because ISA terms include a payment floor or Minimum Income Threshold, to protect students who aren’t able to get a great paying job to support themselves after graduation.

Peace of Mind

Lauren becomes sick and unable to work for 6 months. Since Lauren is not earning during this time, her payments automatically pause without any interest accrual.

Completing Your Income Share Agreement

Because her school offers an ISA, Lauren is able to continue college and graduate without fear of the inability to pay upfront or the thought of growing interest from a student loan. Lauren can fully focus on her education, without the pressure to get a part-time job because she doesn’t have to make any payments until after she graduates and lands a job.

Frequently Asked Questions

Have a question we didn’t answer here? Contact our support at help@meratas.com

Ready To Start Your ISA Journey?

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