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Income Share Agreements ( Isa )

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D. Income-Share Agreements (ISA)
With student loan debt becoming increasingly worse year after year, new and potentially better avenues for students to finance a college education are emerging onto the market. In particular, income-share agreements (ISA) have appeared on the scene for a few years now, but not have attempted to modernize the way students pay for college. The big take away from ISA’s is the shift of financial risk from the student to the investor, unlike the traditional government or private loans. A student promises to pay a certain percentage of his or her income to an investor for a certain amount of years in exchange for financial assistance for college tuition. The purpose of these agreements is to always provide
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College has proven to be more of a burden than a benefit. This note attempts to confront the costly troubles that leave student borrowers with more debt than they originally thought they bargained for. Congress has for a long time has struggled with finding a solid, workable solution to the student loan crisis. Likewise, many notes and scholarly articles have also tried to challenge the system to help student borrowers manage their unmanageable debt. This note will challenge the system from the perspective in which reducing college tuition is the end goal. If the end goal remains just that, unimaginable debt will inevitably turn into manageable debts.
Subpart A of Part II will assess why regulation is necessary. While people shy away from the idea of constantly being regulated by the government because they do not want to give up certain freedoms, in this instance regulation is necessary, because it is the lack of regulation that plays a huge role in the student loan crisis.
Subpart B of Part II of this note will discuss other proposed solutions and why those other proposed solutions did not pan out. Understanding what does not work will allow us to understand what will.
Subpart C of Part II will propose a solution of guidelines all lenders will have to conform to for educational lending. Nonconforming loans will be allowed, however, will be subject to a much less strict standard for discharging loans in bankruptcy. This note
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