Understanding Income Share Agreements (ISAs): A Glossary of Key Terms

To help students understand ISAs, we've created this glossary of the key terms in every ISA agreement. On an ISA, you pay a fixed share of your income over a set period of time instead of paying upfront or using debt. Unlike with a loan, with an ISA, your payments will vary based on your income: make less, and you’ll pay less; make more, and you’ll pay more. ISAs were created to prevent unsustainable debt (large monthly payments, low salary) and to align incentives between schools and students.

Here are the key terms to review when considering any ISA: