Income share agreements (ISAs) are designed to help students pay for and attend postsecondary education and career training programs. With an ISA, students receive financial support to help cover the cost of their education and, in return, agree to pay a fixed percentage of their future income over a predetermined time period. ISAs are gaining popularity as an alternative financing vehicle, but there is little research to guide practice and policy.

Although student loans have helped millions of students attend college, federal loans often do not fully cover students’ unmet need, and they are not available for many training programs. Close to five million student borrowers, moreover, are currently in default. Many students never complete their programs, while others attend programs that do not lead to good-paying jobs. These problems are often rooted in historical and systemic racial discrimination and biases, and they disproportionately affect students of color and low-income students.

Read the full article about income share agreements at MDRC.