In the News: Battle Lines Drawn on a Student Loan Alternative

June 13, 2019

By: Andrew Kreighbaum

Inside Higher Ed

Senator Elizabeth Warren and other congressional Democrats delivered a warning on Tuesday about the potential dangers of income-share agreements, an alternative form of college financing increasingly popular with some critics of student loans. The lawmakers’ primary target was the Trump administration — which has expressed interest in experimenting with the agreements — but the shot across the bow also aimed at colleges operating their own ISA plans.

Income-share agreements offer students financial support up front and in exchange require them to repay a portion of their income for a set number of years. They first caught on at coding boot camps and similar programs that don’t receive federal student aid. But a handful of four-year colleges have begun offering their own ISA plans and, last month, the Trump administration said it planned to pursue a federal experiment to offer income-share agreements to students.

Click link below to read more:

https://www.insidehighered.com/news/2019/06/05/democrats-take-aim-student-loan-alternative-and-colleges-offer-income-share

 

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