An Economic Perspective on Income Share Agreements

The July 15 issue of the Congressional Research Service In Focus explores income share agreements as an alternative to student loans for financing higher education expenses. The report provides “an overview of ISAs along with a comparison to student loans. Because no federal ISA program currently exists and the majority of student loan debt is associated with the federal student loan program, the overview and comparison primarily focuses on private ISAs and federal student loans but generalizes some parts of the discussion to highlight particular features of each financing approach.” Questions Congress may want to consider along with potential policy issues are also presented in the report.