As the cost of higher education continues to rise, students are looking for alternative ways to finance their education, and one such way is through income share agreements (ISAs). Manhattan Institute, a nonprofit think tank, is one of the institutions offering ISAs to students.

An ISA is essentially an agreement between a student and a financier wherein the student agrees to pay back a percentage of their income for a specific period after they graduate, in exchange for an upfront payment to cover their college tuition. At Manhattan Institute, the ISA is available to students pursuing their certificates in subjects such as cybersecurity, web development, and data analytics.

One of the significant benefits of ISAs is that they are income-based, meaning students only pay back a portion of their income post-graduation and only when they are earning a certain threshold. This significantly reduces the financial burden on students, particularly those who are not able to secure traditional student loans due to poor credit scores or lack of assets.

ISAs are also beneficial for students in fields that have a high demand for workers but may not pay as well initially. For example, a student studying data analytics may not earn a high salary right out of college, but with the promise of a percentage of their future income contributing to their ISA, they can still afford to pursue their education and eventually pay back their tuition.

Manhattan Institute`s ISAs also come with built-in safeguards for students. For instance, if a student`s income falls below a certain threshold, they are not required to contribute to their ISA, and if they never reach a certain income level, they may not have to pay back their entire ISA. Additionally, the duration of repayment is limited to a specific period, usually between ten to fifteen years.

Overall, Manhattan Institute`s Income Share Agreements represent an innovative and student-friendly alternative to traditional student loans. They provide students with an opportunity to pursue their education without worrying about the financial burden they would otherwise face with traditional student loans. As the cost of higher education continues to rise, ISAs may become a more viable option for students looking for ways to finance their education.