An innovative model of tuition financing from Purdue University in Indiana is poised to disrupt the student loan industry, solve the debt crisis, and open the possibility of higher education and well-paid careers to millions.
Beginning in 2016, University President Mitch Daniels wants to allow private investors to invest in the success of Purdue students using a new financial model: Income Share Agreements (ISA).
ISAs allow private investors to buy shares of a student’s future income for a fixed period of time in exchange for covering the cost of tuition – an idea that has the potential revolutionize the student loan industry. This idea is not new.