CHICAGO–IonTuition, (ION) the most comprehensive student loan repayment management platform, introduces the country’s first platform that can service Income Share Agreements (ISAs) at large scale. MentorWorks Education Capital selected ION as its partner given the company’s expertise and the flexibility of the product.
ISAs are a contractual agreement between the ISA provider and the student. ISAs are not a loan and therefore interest does not accrue. Funds are delivered to the school for the payment of tuition and the student agrees to pay a percentage of their future salary after graduation for a fixed time up to a maximum cap amount. Repayment is contingent on students earning a minimum salary, which make ISAs an attractive alternative to student loans.
Servicing of ISAs is done through ION’s online interface by IonTuition. ION allows students to verify their income, receive career support through a network of recruiters and mentors, track their ISA, and set up payments. ION’s Concierge Advisors are available via phone, email, or chat to help students manage their ISA and answer any questions; and best of all, those with ISAs who also have federal or private student loans can get full-service assistance to handle repayment optimization and planning repayment on IonTuition.
“The ISA model allows students to make payments only when they have a minimum level of income, and payments are capped to make the financing affordable to students,” said Micha Sabovik, COO and VP of Marketing at MentorWorks. “MentorWorks’ hybrid ‘fund and support’ model is a unique and student-centric approach. Our financing model enables students to complete their education and help them launch their careers by providing career development resources, career mentoring, and access to top-notch employers.”
IonTuition’s move into servicing ISAs comes at a time when financial aid options for college are a top concern for Congress and presidential candidates. The ISA Student Protection Act of 2019 was proposed as a way to generate comparable alternatives to the growing student loan market. ION is the first platform focused on each stakeholder of the ISA ecosystem – ISA originators get a fully customizable servicing platform; students and families get concierge services to handle the ISA and their federal and private student loans; and schools work with an experienced higher education vendor who has serviced billions in loans over the last decade.
“The marketplace is searching for non-federally dependent answers. ISAs are a way for schools to offer an additional source of financing so students don’t feel dependent on federal student loans,” said IonTuition CEO, Balaji ‘Raj’ Rajan. “We updated our platform as an extension to help the private sector make investments in ISAs confidently because we can service these asset classes at scale better than anyone in the marketplace with our product flexibility, portfolio reporting and analytics, and overarching focus on serving students.”
To learn more, visit https://www.iontuition.com/isa/
IonTuition provides the industry’s most comprehensive suite of student loan repayment tools, complete with student loan management, expert student loan counseling, unbiased refinancing, default resolution, ISA servicing, and flexible contribution options. IonTuition has handled $19 billion in student loans across three million borrowers. IonTuition is available to nearly 100 colleges, universities, and employers throughout the country. IonTuition has been providing tools surrounding post-secondary education since 2011.
About MentorWorks Education Capital
MentorWorks Education Capital offers a mutually reinforcing “fund and support” hybrid model combining an Income Share Agreement (ISA) fund with active career enhancement, professional mentoring and connections to employers for current college students and non-traditional students.
MentorWorks’ ISA financing enables students to complete their program without incurring up-front tuition costs. ISAs are an alternative to loans with which approved students will have their tuition paid and then will pay a percentage of their future income for a fixed period of time, up to a maximum cap without incurring interest. Uniquely, MentorWorks also provides career development support, mentoring and access to employers.
To learn more about MentorWorks Education Capital visit: http://www.mentorworksedcap.com or reach out to MentorWorks Education Capital COO, Micha Sabovik at firstname.lastname@example.org. Follow MentorWorks Education Capital on LinkedIn at https://www.linkedin.com/company/mentorworksedcap/.