Good University Incoming Sharing Program Overview
Backed by the Good University Research Foundation, the GoodU-ISA Fund is an innovative way to help make school affordable for Good University students. An Income share agreement (ISA) is not a grant or a traditional loan — though students do make payments after graduating and securing employment. It’s an opportunity to complete an education without worrying about interest rates or decades of payments. This program offers an alternative to upfront paid tuition and expensive private or federal loans to fund post-secondary education in resource-poor communities.
Investing in Good University Students’ Success
The GoodU ISA Fund makes it possible for low-income students who need funding to pay for their education. Students receive funding through the program and complete the agreement by paying back a set percentage of their post-education salary over a set number of years. For every $5,000 in tuition funding received, a student shares 5% of their income for 5 years. Once a student pays back five (5) times the funding amount, the contract is complete.
Download the Sample GoodU ISA Agreement
An ISA is not a loan or other debt instrument.
An ISA represents a student’s obligation to make payments linked to a specific percentage of the student’s earned income and does not give Good University any rights regarding his/her educational or employment pursuits. One of the ways that an ISA differs from a traditional loan is that students aren’t accruing interest on the total amount funded.
A New Model for Higher Ed
The standard payment period for the GoodU-ISA Fund is 5 years, making it shorter than most federal and private loan terms. The flow of tuition payments is different for Good University ISA students and non-ISA students. While a non-ISA student pays tuition directly to the Good University, ISA-students do not. Upon execution their ISA contract, GoodU ISA Fund pays tuition on their behalf to Good University.
Q: What is an ISA?
In general terms, an Income Share Agreement (ISA) is a contractual agreement in which a student receives education funding in exchange for an agreed upon percentage of post-graduation income over a defined number of years. It’s an opportunity to complete an education without worrying about interest rates or decades of payments.
Q: Why is Good University offering an ISA?
Good University has established the GoodU– ISA Fund to provide another choice of funding options for students that could reduce debt and financial risk for graduating students. Good University is focused on student-centric communication and will conduct the ISA with transparency and openness with a priority on helping students pay for their academic education that best suits their particular needs.
Q: Does Good University offer government-subsidized student loans?
No. Good University does not offer government-subsidized loans. An ISA is not a grant or a traditional loan – though students do make payments after graduating and securing employment.
Q: Is the GoodU – ISA Fund meant to replace student loans?
The GoodU – ISA fund offers students another option to pay for their education should they need additional resources or favor a more income-flexible funding alternative. The program was established to provide another choice of funding options for students that could reduce debt and financial risk for graduating students.
Q: What are the benefits to students?
ISAs offer students an alternative to debt: debt creates substantial risks to students if they cannot afford their payments during and after college, whereas ISA payments adjust according to levels of income. In addition, there will be a minimum income threshold and a maximum payment cap, so students who use the program will not pay if they do not meet a minimum income level, while those who earn a substantial amount of income will not pay above a certain maximum amount.
Q: Am I required to fully pay the money that was given to me under the ISA?
An ISA recipient is simply required to pay the agreed upon percentage of post-graduation income for the prescribed term of the contract. After making successful payments over that term, no additional payments are required even if they have paid less than the amount of funding they received.
Q: May I repay my ISA early?
The ISA may be prepaid by paying 5 times the amount of initial funding for the ISA.
Q: Will the amount I am responsible to repay grow through interest expense until I begin making payments or by my occasional underpayment?
One of the ways that an ISA differs from a traditional loan is that students aren’t accruing interest on the total amount funded, however, most individuals in the program will pay more than the principal borrowed. The amount you are required to pay (Income Share multiplied by earned income) will only grow due to the growth rate of the amount of the income you earn, but the income share level percentage will not change over the course of the ISA.
Q: What are the risks to students?
The amount of payment is based on income, so if a student commits to an ISA and earns a high income after graduation they may pay more to the fund than they would have with conventional debt. However, Good University caps the total amount paid.
Q: How much funding is available for individual students?
Individual funding amounts may vary depending on each student’s particular case. Students can use ISA to pay for tuition for one year at $5,000.
Q: How will students know if an ISA is a good option for them?
ISAs are among many options that are available for education funding. Students, parents and/or guardians should research which options work best for their individual situations.
Q: What types of payment terms will be offered for students?
For every $5,000 of funding, students share 5% of income for 120 months. Depending on the student’s post-graduate income, the amount paid back on the ISA may be either lower or higher than the amount provided to the student.
Q: Following graduation, when does the GoodU– ISA Fund payment plan take effect?
Students are afforded a six-month grace period after graduation or the commencement of employment before payments are required.
Q: Will students be required or steered toward certain types of post-graduation employment?
There are no requirements stipulating the nature or type of employment that students choose after graduating.
Q: Which GoodU students will be eligible to apply for an ISA?
The program is available to selected Good University students. Other eligibility requirements include:
- Successful completion of a phone interview with a GoodU Advisor.
- Students must be 18 years or older when the ISA contract is executed.
- Students must commit to a minimum of 5 hours a week to Good University
- Students must be able to communicate effectively in written and spoken English.
- Students’ monthly payment obligations under all loan and income share agreements – past, present and anticipated – must not be too large a proportion of his/her anticipated future monthly income, as outlined in the GoodU ISA program.
Q: What factors should students consider when applying an ISA program?
A student’s individual education funding plan should include an assessment of all of the options available based on their individual financial situation.
Good University encourages any student interested in an ISA to discuss GoodU- ISA with their parents and/or guardians and a financial aid adviser and consider how an ISA compares to other education tuition payment options.
Q. What are the minimum and maximum amounts I can take in an ISA?
A GoodU– ISA Fund starts at $5,000. The maximum is $36,000 and depends on any prior ISA obligations.