What is the maximum amount of financing that I can ask for?
The ISA program provides financing up to $50,000.
What are the payment terms, duration and rate?
Payment term can be between 3 and 9-years depending on amount borrowed and income share rate, with payment forgiveness allowed based on income levels falling below a certain threshold.
Is there an interest rate?
ISAs are not loans, and so there is no interest rate. Every month you repay a fixed percentage of your salary. For example, if the ISA equity rate is 2%, and your annual (pre-tax) salary is $50,000, you pay (0.02/12)*50,000 = $83. This is just an example, and actual equity rate depends on the amount you borrow, academic performance, etc.
What is the income share rate?
Instead of interest rates, our ISA repayments are based on an “income share rate” which refers to the fraction of your annual income you pay for the financing you get.
Is this tied to my credit?
Since ISAs are not loans, we will only use adverse credit history as a gating mechanism for our ISAs. It will not affect the pricing of your ISAs, nor will payment forgiveness affect your credit score adversely.
Do I have to pay a fee to be a part of this?
No, there are no fees to join this program. Selection into this program will be purely on the basis of academic merit and future potential.
How is this different from a loan if I'm still making payments after graduation?
ISAs are different because, unlike loans, the amount of money you pay decreases if your salary decreases and increases if your salary increases. We will also offer monthly payment forgiveness for extraordinary out-of-pocket medical expenses or job losses (or incomes falling below a certain threshold amount). However, if you decide to get more education we can offer deferments for the period of education.
What if I am unable to make payments?
We offer automatic payment deferrals for inability to make payments for financial reasons including job loss, salary cuts, and extraordinary out-of-pocket expenses. All you need to do is provide a document showing your circumstance (letter from employer, medical bills, etc.) You should also be willing to circulate your resume among the connections that we can provide.
What if I default on payments?
As mentioned above, ISAs are default free. If you cannot make payments for financial reasons, we will defer your payments upon submission of proof of financial difficulty. After a certain number of deferral periods, we will forgive the payments.
Can I make early payments?
Yes, we will have an early repayment provision.