Hogville

Non Sports Forums => FINANCE/INVESTMENT FORUM => Topic started by: widespreadsooie on April 10, 2019, 11:29:15 pm

Title: Income Share Agreements (ISA) for College Students
Post by: widespreadsooie on April 10, 2019, 11:29:15 pm
Stumbled upon a Bloomberg article today about Income Share Agreements and college students. Basically, it's a higher education financing alternative to student loans. Instead of borrowing money, you form a contract with an investor to pay a certain % of future income.

The article mentions this being around since 2016 and even Yale experimenting with it way before then. I've never heard of this and find it very interesting for a number of reasons. Tons of questions to be answered from an investing perspective. 

Thoughts? Here's the article:

https://www.bloomberg.com/news/articles/2019-04-09/college-grads-sell-stakes-in-themselves-to-wall-street
Title: Re: Income Share Agreements (ISA) for College Students
Post by: SardisHog on April 11, 2019, 08:11:36 am
I may have missed it but did it say for how long the percentage came out of your income?
Title: Re: Income Share Agreements (ISA) for College Students
Post by: widespreadsooie on April 13, 2019, 12:52:31 am
I may have missed it but did it say for how long the percentage came out of your income?

The example cited in the article was 8.5 years.

The context in the article suggested it varies, that's how I interpreted at least.

The more I've thought about it since posting, this seems riskier than student loans...for both parties.
Title: Re: Income Share Agreements (ISA) for College Students
Post by: WaltKowalski on April 15, 2019, 10:31:12 pm
The example cited in the article was 8.5 years.

The context in the article suggested it varies, that's how I interpreted at least.

The more I've thought about it since posting, this seems riskier than student loans...for both parties.

Iíd invest in most Yale grads
Title: Re: Income Share Agreements (ISA) for College Students
Post by: widespreadsooie on April 16, 2019, 01:45:54 am
Who wants to buy some millennials?
Title: Re: Income Share Agreements (ISA) for College Students
Post by: onebadrubi on April 16, 2019, 04:57:11 am
Iíd invest in most Yale grads

Whoiskid says heís a Yale grad.  Iím sure heíd love for you to invest in his Robert shields esque writing.
Title: Re: Income Share Agreements (ISA) for College Students
Post by: onebadrubi on April 16, 2019, 04:57:41 am
Who wants to buy some millennials?

We still talking college education or like sugar daddy status?
Title: Re: Income Share Agreements (ISA) for College Students
Post by: widespreadsooie on April 16, 2019, 09:11:02 pm
We still talking college education or like sugar daddy status?

Both, lol.
Title: Re: Income Share Agreements (ISA) for College Students
Post by: ricepig on April 17, 2019, 07:35:37 am
Iíve done 3 Income Share Agreements, my three kids got a share of my income while in college, some even afterwards.
Title: Re: Income Share Agreements (ISA) for College Students
Post by: onebadrubi on April 17, 2019, 07:56:05 am
Iíve done 3 Income Share Agreements, my three kids got a share of my income while in college, some even afterwards.

Except the agreements arrange a payback planned.  Youíre just screwed buddy.  Haha
Title: Re: Income Share Agreements (ISA) for College Students
Post by: rzrbackramsfan on August 17, 2019, 10:50:33 pm
Stumbled upon a Bloomberg article today about Income Share Agreements and college students. Basically, it's a higher education financing alternative to student loans. Instead of borrowing money, you form a contract with an investor to pay a certain % of future income.

The article mentions this being around since 2016 and even Yale experimenting with it way before then. I've never heard of this and find it very interesting for a number of reasons. Tons of questions to be answered from an investing perspective. 

Thoughts? Here's the article:

https://www.bloomberg.com/news/articles/2019-04-09/college-grads-sell-stakes-in-themselves-to-wall-street

Not a good idea in my opinion unless the isa purchaser can help the student grow their income private equity style.

 If youíre ambitious to make big money, you donít want youíre million dollar earnings turning into paying someone like a million dollars over a lifetime for school.  Conversely, if youíre not ambitious to make money, then youíll probably underperform whatever income expectations made the deal fair.