Income Share Agreements: The Student Loan Gift that Keeps on Giving
What are the parameters of this crisis, and how can EduSeed make a difference?
As the massive student loan crisis continues to inflate, it is essential that incoming college students are familiar with what’s going on and how they will be affected. Whether you are a college student, someone who is currently struggling to pay back their loans, or anyone else, here are some statistics on the state of the student loan crisis and how EduSeed’s mission will change it.
Recent reports indicate that student loans, clocking in at an all time high, have reached a total of $1.48 trillion in the US with 44.2 million American holding this debt. As tuition rates have continued to skyrocket, more and more students have fallen to this insurmountable debt generating an 11.2% delinquency rate.
With the average graduating student loan debt reaching over $37,000, it is no secret how this debt hinders graduates from exploring life after college as they struggle for years to pay back their debt. This type of prolonged debt interferes with many major life decisions such as having children or purchasing a home/car which, when combined with student loan debt, can lead to extreme financial instability.
“Student debt weighs on every decision I make, from food shopping, to where I choose to live, to how I spend my free time, to what clothes I wear, and ultimately, what career I choose.” — ASA Survey Respondent, LIFE DELAYED: The Impact of Student Debt on the Daily Lives of Young Americans
With these issues in mind, EduSeed strives to minimize risks for students, while still allowing them to pursue their dreams. Through our income share agreement (ISA) based model, students are able to graduate with much less debt while being able to comfortably pay off debts based on their income. When combining this model with our mentorship program that connects students with alumni from their school, student are given stronger connections in the industry that allow them to pursue more lucrative careers that best align with their dreams.
Read more about our ISA program at EduSeed.co
Written By: Anuj Vasil, Co-Founder
