How to pay for college is the sixty-four-thousand-dollar question. Recently, there’s talk about a new option called income-share agreements.
They are similar to the government’s income-based loan repayment plans. Students promise to pay a fixed percentage of their future income in exchange for money for college.
What’s the upside? “No interest, no balance, affordable payments, and you can’t go into default like traditional loans,” says Kristen Moon, a college counselor and founder of MoonPrep.com. “ISAs appear to be a good second option.”
The downside:“Terms vary for each ISA; be clear about the terms,” says Moon.