United States:
Managing Compliance Risks For Income Share Agreements
26 July 2019
Skadden, Arps, Slate, Meagher & Flom (UK) LLP
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Educational income share agreements, which tie a student's
loan repayment obligations to his or her future earnings, have
risen in popularity over the past several years as an alternative
to student loans. ISAs have also recently been the subject of
significant attention and scrutiny, in large part due to an
announcement in April by the United States Department of Education
that it will experiment with federal support for ISAs.
This article describes the relevant features of ISAs, certain
consumer compliance risks that may be associated with ISA
contracts, and strategies to mitigate such risks.
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The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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