Revenue-participation agreements backed by Betsy DeVos and Silicon Valley may lead to shifting the payment burden from some students to others. “Students benefit because it `risks` their educational investments,” Dunagan said. “ISA`s funding models link revenue to results, unlike the current funding model, which relies almost exclusively on registration.” Income participation agreements allow a student to pay for their university education at the back end of their training with their own income, rather than at the front of their training with borrowed money that incurs interest charges. The Trump administration plans to create an experiment in which a limited group of colleges could take over the federal debts of credit students and have them paid off through income-equity agreements. At a Dec. 3-6 meeting, officials from the U.S. Department of Education discussed a federal program that would allow individual students to repay their student loans through income-equity agreements. “Applying with Stride starts by answering a few simple questions, including the degree you want, the school you`re going to attend, your main subject, and the timing of your graduation. The team then reviews your application and sends you an offer. All this can happen in a few hours.
If you qualify, you will receive an ISA package that lists your revenue percentage, payment deadline and how the ISA structure works – of course customized. “Given that these deals are gaining popularity and political support and can affect millions of university students, it is worth asking what could go wrong. Diane Auer Jones, the department`s senior undersecretary of state and senior official, focused on the use of federal funds in ISAs. Still, the experiment would create a big risk, said Clare McCann, deputy director of federal higher education policy with New America`s education policy program. Opponents have also argued that the department may not be able to effectively monitor the program, given its history with programs such as the loan forgiveness public service option. “It gave me the opportunity to stay with Purdue,” said Neuwirth, 22, who last summer, as a cargill intern, made the corn flour blend that wraps McDonald`s Chicken McNuggets. “But it`s difficult,” she said, “because I`m going to deduct that from my income, and I also have to repay those federal loans…
