Income Share Agreements
Purdue's online MSECE program is offering eligible students the option of an Income Share Agreement, or ISA, to help fund their cost of program completion.
What Is an ISA?
An Income Share Agreement is a contractual agreement in which a student receives education funding in exchange for an agreed upon percentage of your post-completion income for a fixed number of years. It's not a grant or a traditional loan, though students do make payments after graduation and securing employment. One way in which an ISA differs from a traditional loan is that there is no outstanding balance and you aren’t accruing interest on the total amount funded.
ISAs are an alternative to debt: payments adjust according to your income. In addition, there is a minimum income threshold and a maximum payment cap, so those who use the program will not pay if they do not meet a minimum income level, while those who earn a substantial amount of income will not pay above a certain maximum amount.
So, under an ISA, payments adjust over the life of the contract based on earnings, while providing both downside and upside consumer protections.
What Are the Risks?
Since the amount of payments are based on income, if you earn a high income, you may repay more than you would have with conventional debt. However, an ISA caps the total amount paid and states that cap in all your disclosures.
To be eligible for funding, you must:
- Be enrolled in the Purdue online MSECE program and must be recommended by the ECE program.
- Have attained the age of majority at the time of the application based on your current state of residence.
- Be a legal U.S. citizen (includes naturalized citizens) or permanent resident.
- Not have tuition for this master’s-level program be payable or reimbursable by your employer.
- Not have other income-based agreements that, in aggregate, require you to pay more than 15 percent of your earned income in any given month.
- Be making satisfactory academic progress (as defined by Purdue Online) toward your degree, once you have started the program.
- Not have any adverse credit actions on your credit history, such as collections or bankruptcy, although eligibility is not based on FICO score.
- The total amount funded for the Purdue online MSECE program is $22,500.
- Payments are based on 4.74% of after-completion income.
- Maximum number of monthly payments: 60
- Maximum payment cap: 1.5 times the total amount funded.
- Minimum annual income under which payments are not due: $50,000.
Need More Information?
For more information about our Income Share Agreement program, please email firstname.lastname@example.org.
Traditional Funding Sources
The Graduate School can provide more information on other and more traditional forms of funding for your education.