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ISA Student Benefit: Income Share Percentage Discount

Anna Klawitter May 24, 2021

College is not only far more expensive than it was a decade ago, but the burden of paying for it has also shifted away from the public to individual students. At the same time, the odds of graduating and immediately landing a job that rewards you have become even more difficult. 

An emerging solution to these problems that’s become an exciting way to fund higher education is Income Share Agreements (ISA).

ISAs are a win-win scenario for everyone involved. By offering an option to students to pay for tuition through an ISA, providers can offer education to students, no matter their financial background, and benefit by increasing the range of students they are able to serve. Students benefit by gaining career skills without having to make a large initial investment.

Income Share Agreements help students so they generally don’t have to pay anything until after they’re graduated and earning over a set income.


The Income Share Percentage

The Income Share Percentage is the fixed percentage of your monthly pre-tax income that you agree to share during your contract term. Income shares can range from 2.5% to as high as 17.5%. 

So if a student signs an Income Share Agreement for $20,000 tuition in exchange for 12% of their income for 36 months after graduation, the student’s payment will fluctuate with their income. 

So say you’re making $90,000 in gross annual income, meaning you make $7,500 in gross monthly income, your monthly payments of 12% of your income will be $900.

The Income Share Percentage discount with Meratas allows schools to offer students various discounts on their ISA payment percentage for completing milestones or doing certain things such as enrolling in auto payments for their ISA, taking online classes, etc. It’s up to the partner program on what they want to offer. If a student does one of these things, they receive a certain percentage discount off their ISA.

For example, if you would like to incentivize your students to enroll in auto payments for their ISA, you can set up an ISA percentage discount. So, if a student has a 10% ISA but gets a 1% discount if they enroll in auto-pay, they now only need to share 9% of their income instead of 10%. 

Meratas is the only ISA platform that offers this student benefit as an option to partners on our platform and is one of the many benefits of working with Meratas for all of your ISA needs. If you’re interested in offering an Income Share Agreement at your program, click here to schedule a meeting with one of our ISA specialists.


About Meratas

Meratas is the leading Income Share Agreement (ISA) software company, providing a full-service, turnkey, SaaS platform to design, originate, and manage ISAs. We help universities, bootcamps, trade schools, and membership programs increase enrollment and open accessibility to their programs. All through the power of Income Share Agreements.

We also help those looking to get an education, up-skill, or re-skill, get into the career of their dreams. All at no upfront cost. We pair individuals looking for a fresh new career with the best educational programs on the Meratas platform to reach their professional goals. If you're looking to break into your new career, check out our student page and we'll help you find the career of your dreams.

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Although every effort has been made to provide complete and accurate information, Meratas Inc. makes no warranties, express or implied, or representations as to the accuracy of content contained herein. Meratas Inc. assumes no liability or responsibility for any error or omissions in the information contained herein or the operation or use of these materials.

Topics: income share agreements, ISA


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