About Income-Share Agreements
Through ISAs, students pay what they can, learn, then pay the rest once they are earning.
Instead of taking loans to pay for fees, income-shares allow students to pay a percentage of their income on graduation to fund their learning program.
How Income-Shares Work
Wanjiku cannot afford the tuition fees for her Data Science Program/Course at Coding School XYZ
Instead of paying Ksh 100,000 upfront, she gets into an income-share agreement where she gets to pay 10% of her salary for 24 months on graduation. Because an ISA is not a loan, she pays nothing if she does not get a job within that period.
She also will not pay above the payment cap of Ksh 200,000 in case she get a high-paying job. This is an example of a typical ISA though contract terms may vary from school to school and also based on the amount of funding requested.
SAMPLE Income-Share CONTRACT
Key Terms for Income-Shares
ISAs should be designed to protect students as much as possible while still being profitable to schools who take significant risk support deferred tuition.