Students attending Brenau University can pay for part of their education with future earnings through a new Income Sharing Agreement.
Director of Communications and Media Relations Kristen Bowman says unlike a student loan the program, a partnership with a company called Vemo, does not accrue interest.
"Our graduates can pay a 4.8% share of their income and they have a grace period after graduation. So, this kicks off six months after they graduate or once their income exceeds $20,000 a year," Bowman explained.
Not all students will qualify and the program will not cover the student's entire tuition, according to the school.
As well, the program has an expiration date, so the obligation ends at a certain point even if the student has not yet paid off the agreed amount.
"We're putting some skin in the game with you and, if anything, you could say it's us saying that we have faith that our graduates will make that money upon graduation," she said. "We believe that's the value of our education."
Vemo Education officials said they designed the financing option to increase educational access and completion and to align cost with student success and outcomes.
“The broader social mission of ISAs is simple,” said Tonio DeSorrento, co-founder and CEO of Vemo Education. “Help schools like Brenau drive student success and positive outcomes. It’s inspiring to see how Brenau is using ISAs as a tool for increasing access, retention and completion.”
http://accesswdun.com/article/2019/8/824628/students-can-commit-future-income-towards-tuition-at-brenau-university