Hogville Info
• 10,352,577 Posts
• 409,635 Topics
• 23,415 Hogvillians
THE RULES (Read 'em!)
Quick Links
Pick'Ems:Football      Basketball      Baseball
Sister Sites:Gridiron HistoryFearless Friday
Pages: [1]   Go Down

Author Topic: Income Share Agreements (ISA) for College Students  (Read 401 times)

0 Members and 1 Guest are viewing this topic.

widespreadsooie

Income Share Agreements (ISA) for College Students
« 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
Logged

SardisHog

  • Administrator
  • Senior
  • **********
  • Total likes: 72
  • Offline Offline
  • Gender: Male
  • Posts: 631
  • GO BIG BLUE
Re: Income Share Agreements (ISA) for College Students
« Reply #1 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?
Logged

Sponsored Ad



Hogville encourages you to do business with the following...

widespreadsooie

Re: Income Share Agreements (ISA) for College Students
« Reply #2 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.
Logged

WaltKowalski

  • Hall of Fame Hogvillian
  • *******
  • Total likes: 1
  • Offline Offline
  • Posts: 10,692
  • Surfing the web at Hogville.net
Re: Income Share Agreements (ISA) for College Students
« Reply #3 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
Logged

widespreadsooie

Re: Income Share Agreements (ISA) for College Students
« Reply #4 on: April 16, 2019, 01:45:54 am »

Who wants to buy some millennials?
Logged

onebadrubi

  • Gold Hogvillian
  • *********
  • Total likes: 1270
  • Online Online
  • Posts: 19,903
  • Surfing the web at Hogville.net
Re: Income Share Agreements (ISA) for College Students
« Reply #5 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.

onebadrubi

  • Gold Hogvillian
  • *********
  • Total likes: 1270
  • Online Online
  • Posts: 19,903
  • Surfing the web at Hogville.net
Re: Income Share Agreements (ISA) for College Students
« Reply #6 on: April 16, 2019, 04:57:41 am »

Who wants to buy some millennials?

We still talking college education or like sugar daddy status?

widespreadsooie

Re: Income Share Agreements (ISA) for College Students
« Reply #7 on: April 16, 2019, 09:11:02 pm »

We still talking college education or like sugar daddy status?

Both, lol.
Logged

ricepig

Re: Income Share Agreements (ISA) for College Students
« Reply #8 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.

onebadrubi

  • Gold Hogvillian
  • *********
  • Total likes: 1270
  • Online Online
  • Posts: 19,903
  • Surfing the web at Hogville.net
Re: Income Share Agreements (ISA) for College Students
« Reply #9 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

rzrbackramsfan

  • Hall of Fame Hogvillian
  • *******
  • Total likes: 257
  • Offline Offline
  • Gender: Male
  • Posts: 5,037
  • "Winners never quit, quitters never win"
Re: Income Share Agreements (ISA) for College Students
« Reply #10 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. 
Logged
Pages: [1]   Go Up
 

KARK
KWNA
Fox 16 Arkansas