ISA: Total Number in 2018
About 1,000 Income Share Agreements (ISA) were made in the 2017-2018 academic year in the US.
General Information about ISAs
- The basic idea of ISAs was launched in the 1950s by economist Milton Friedman but did not succeed at the time.
- The ISA is mostly seen in colleges and universities. It is an agreement which involves the student and institution, whereby the institution provides funds to the student to support his/her education, and the student pays the fund over agreed number of years.
- The ISA is usually done per academic year.
- ISA is not very well-known in the US as a source of secondary education finance.
- A study conducted on 400 college students and parents in 2017 concluded that only 7% of students and 5% of parents were aware of ISA existence.
Colleges and Institutions offering ISA
- Colleges that have launched ISAs programs in the US since 2016 are Purdue University, Colorado Mountain College, Lackawanna College in Pennsylvania, Clarkson University in New York, Norwich University in Vermont, and Messiah College in Pennsylvania.
- Purdue University's ISA scheme is the most famous after it created the "Back a Boiler Income Share Agreement Fund in 2016."
- Clarkson University only offers about 20 ISA spots every year.
- Some coding bootcamps also offer ISA as an option to finance studies.
- MissionU, a vocational scheme also offer ISA.
Outlook for ISAs
- Though ISA is not yet popular among use college students and parents, it is expected to grow in the next five years.
- The actual ISA's market is estimated at $50 to $150 million. This is expected to rise to billions in the next five years, according to Braun.