INC O ME SHARE AG REEMENT S: A NEW APPRO AC H T O PAY FO R C O L L EG E? Cou ourtne ney M y McB cBeth Univ iver ersit ity of y of Utah ah Terri T i Tayl ylor Mode oderated b by: Lumin ina F Foun oundat datio ion Ben B n Brand andstetter CPE V PE Vice ice Chair air
Incom Income Share Share A Agre greeme ment nts A A New w Ap Approach ch to P o Pay y for Colle or College ge? 2019 Symposium on Louisville, KY Postsecondary Education September 17, 2019 Trusteeship
Guiding questions 1. What does the current landscape for ISAs look like? 2. What questions are important for institutional leaders to consider when it comes to ISAs? 3. How has one early leader, the University of Utah, designed their ISA? What are they learning? 4. What would you like to discuss? 3
The current ISA landscape 4
Source: Career Karma, State of the Income-Share Agreement (ISA) Market 2019
~2016 ~20 Source: AIR, The Income Share Agreement Landscape: 2017 and Beyond
10 questions on ISAs 7
Foundational questions • Why is the ISA being offered? • Does the ISA fill a gap in our financial aid system? • How does the provider know what students need and evolve as those needs change? This Photo by Unknown Author is licensed under CC BY-ND
Money questions • Who will benefit the most from the ISA? • Who’s funding the ISA and what are their expectations? • What third-party partners does a provider need-and at what cost? This Photo by Unknown Author is licensed under CC BY-NC
Other design questions • Does the ISA fit into a broader suite of supports for access and completion? • What role does location play? • What legal framework should govern? This Photo by Unknown Author is licensed under CC BY-NC-ND
The kicker This Photo by Unknown Author is licensed under CC BY-SA-NC What What does does s suc uccess loo ook like?
Pay Today’s Tuition With Tomorrow’s Success
A Presidential Initiative
Timely Completion is a Priority
Launching Successful Citizens
ement n in centage gs. ble way ation. after olarship.
h students? on for debt averse Utah students nsive than other student loans nterest and have no principal ments back to the Invest in U fund to te on time without having to s or stop out student success
1,500 18 5 Students Majors Pilot Program Diversified student Invest in U will fund a The 5-year pilot pool from 18 majors diversified pool of program will test the within 9 colleges: undergraduates model and scale to Social Sciences; students within a year build a sustainable Humanities; or two from evergreen fund to Education; Business; graduation, scaling perpectuate success Nursing; Architecture over 5 years to serve of future students. + Planning; Health; up to 2,000 students. Medicine; and Engineering.
ently in its pilot phase. More majors may be added in future years. e selected based on salary data availability, salary range, and to reach a broad spectrum of students.
s an ISA work? hare anges from 3 to 10.5 years, ajor and ISA amount m income threshold graduate school, voluntary iods of unemployment
2 3 Earn Reinvest Earlier Success
Contact Financial Aid Melanie Evans Mevans@sa.utah.edu isa.utah.edu 801.581.6211
Accelerating Timely Completion
Q&A 27
APPRO AC H T O PAY FO R C O L L EG E? Cou ourtne ney M y McB cBeth Univ iver ersit ity of y of Utah ah Terri T i Tayl ylor : : Lumin ina F Foun oundat datio ion e er r
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