Simply put, under an income service contract, a student is required to repay a certain percentage of his salary as soon as he or she begins to earn a salary above a predetermined threshold. Norwich`s ISA program offers two sets of conditions. For students who replace benefit grants with an ISA program, their contracts set the reimbursement limit in the amount that the school has primarily made available. This means that a student who replaces a $5,000 scholarship with an ISA does not have to repay more than $5,000, and could even repay less based on his or her income during his contract. “I think universities are responding to the fact that student debt is widely seen as a crisis. And there are a lot of students who are nervous when it comes to taking on heavy debts. And the concept of an income-participation agreement is a bit for sale for these students,” said Clare McCann, assistant director of higher education policy at New America, a Washington-based think tank, D.C. “In many cases, the university degree remains a prerequisite for social and economic mobility — but rising costs and questions about affordability often leads students to invest in their higher education or not to complete their studies,” said Tonio DeSorrento, co-founder and CEO of Vemo Education. “Income participation agreements can meet this challenge and support the aspirations of students who can benefit most from higher education.” “As with all financial products, please read the fine print.
But especially with respect to revenue-participation agreements, because there are so few rules about what they can do,” McCann said. Norwich University celebrates its 200th anniversary in 2019. In fulfilling Norwich`s mission to train and train today`s students in tomorrow`s world leaders, Norwich launched the Forging the Future campaign in 2014. The five-year campaign, which is expected to culminate in 2019, has set itself the mission of creating the best possible learning environment through the most modern academics and first-class institutions, and aims to strengthen the university`s strong position on the road to its third century service to the nation. “We expect our members, if they learn more about this new preferred program, to find income participation agreements as a new tool to remove barriers to registration and engagement. And universities that offer income-participation agreements have a greater share in the success of their students after graduation. Tim Alexander, vice-president of financial administration and administration at AICUP.