In 2013, Oregon lawmakers passed a bill that would study pay it forward as a college funding system. The model would allow students to study at university without study and then pay a portion of their income after graduation to finance the cost of their studies. However, unlike the Income Participation Agreement model, Pay It Forward would be publicly funded and would provide fixed percentage repayments for all institutions.  Carlo Salerno, vice president of research at Campus Logic, said that neither approach to revenue-involved agreements is intended to fully address the problem of increased funding. (Salerno previously launched a platform that allowed students to market directly to investors for financial support and was a former supporter of the income participation model. CampusLogic announced a partnership with Vemo in June.) Lumni is a bipartisan marketplace that connects students interested in income participation agreements with institutional sources of capital. Upstart, another ISA provider, has transferred its offer to an alternative loan type. . However, fish have their reserves. «I`m the conservative type of CFOs, I was nervous and I see some risks,» he says, noting that revenue-participation agreements are still largely unregulated and it`s too early to say whether the model will work.
But he embraces the experience. «We have successful graduates who make money, and if we collect them correctly, then everyone is a winner. They get the jobs they want, and we will get the money back to use for future generations. This is the premise of a new financial instrument by which higher education institutions help students pay for school – income participation agreements (ISAs). While the tool looks promising, it is far from easy. In some cases, it may be better to borrow student credits, but in many cases it is less good. Despite these concerns, graduates who have started paying their ISAs say they weigh less than credit. Charlotte Herbert financed her senior year at Purdue with a revenue participation contract of approximately $27,000; Each month, in addition to its federal loans, it pays its investors 10 per cent of its pre-tax salary of $38,000 and will continue to do so for the next seven years. «Knowing that it will never be more than 10 per cent of my income was pretty reassuring,» says Herbert, 24, a technical author of guides and manuals for an engineering office. «My biggest concern with my loans is that it will continue because of interest rates.
I`m constantly looking at how I can get a little more out of it to get over the interest. The United States allows its citizens to enter into income-sharing agreements. Supporters argue that the funding method gives the school more responsibility to help students succeed, and offers an alternative to credit and debt. (I want colleges to have «skin in the game» to find out if students are succeeding.) However, critics say the model could be dangerous for several reasons: future spending is difficult to predict, schools may prioritize giving ISA students who are more likely to succeed, and students could end up paying far more than education fees if they end up with high incomes.