Wall Street Journal Income Share Agreement
One of the most frequently cited concerns about income sharing agreements is that they are a form of servitude. Critics argue that because students owe a percentage of their income, the investor therefore owns a portion of the student. For example, Kevin Roose wrote in New York Magazine that ISA companies “give young people in the post-crash economy a chance to stick to clients in the investor class.”  Thompson said she was also concerned that ISAs could discourage students from taking out federal loans that also have income-based repayment options and can offer the same terms regardless of students` backgrounds. It`s no surprise that rescuers jump into an area to break up a new idea that challenges their credentials or profits. But the ISA could also fall victim to the well-intentioned embrace of its new fans. The Ministry of Education referred to the many benefits of ISAs and talked about offering its own version of the agreements. Supporters of the programs appreciate the approval, but we fear that they will become victims of friendly fire if the federal government decides to become a competitor. Uncle Sam nationalized student loans ten years ago, and we`ve all seen how well it works. According to the Wall Street Journal, the typical university or college takes two to ten percent of a graduate`s income for the first five to 10 years after graduation, once the graduate gets a job that pays at least $20,000 to $30,000. Income-sharing agreements are beginning to gain traction as a funding option for colleges. But because they are so new, many students and families don`t know much about them.
So far, there are no documented cases of racial or gender discrimination with ISAs, but some fear that if ISAs become a more popular model, the potential for discrimination could increase.  Although there are already anti-discrimination laws in most financial markets that would likely apply to ISA investors, the issue has not yet been fully resolved. Some proponents argue that ISAs are less discriminatory than loans: the terms of the agreement vary from university to university, but generally the amount students repay increases as their income increases. As an alternative to student loans, an ISA is an agreement between a student and their school in which the student agrees to have the university fund their studies. In return, they agree to pay the university a percentage of their salary after graduation. The day after his expulsion from Holberton, Simien returned to work to install audiovisual equipment in downtown San Francisco. There`s this dream, and now I`m back to this, he thought as he drove from site to site. “I was really depressed,” he told me. And then it got worse. After a six-month grace period, Simien received an email asking him to upload his pay slips to Vemo, a platform used by ISA programs to facilitate monthly payments. .