Income Share Agreements

Servicing of ISAs and career preparation

IonTuition services Income Share Agreements through our online platform. Students can manage their ISA and plan their repayment.

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What is an Income Share Agreement?

Income Share Agreements (ISAs) are an alternative to student loans. In an ISA, you pay based on what you can afford – which is a fixed percentage of your income after graduation.

Through the IonTuition platform, you can manage your ISA and your student loan repayment with access to  expert counselors via phone or webchat.

Why do institutions offer ISAs?

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Expand enrollments

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Fill funding gaps

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Invest in your students by making their education more results based

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Make school more affordable

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Strengthen graduation rates

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Provide funding to Dreamers (DACA), adults, and online learners

Want to offer an ISA at your institution?

IonTuition delivers full-service ISA platform for your students complete with origination and servicing.

Contact us today to learn more!

Career Preparation and Mentors

*for participating institutions only

Our platform includes access to top professionals in your field to act as mentors in your career search. You’ll connect with industry leaders for your major to help you break into the job market.

Need Assistance?

Please do not hesitate to contact us at 855-456-2656 between the hours of 7am to 8pm CST Monday through Thursday and 7am to 5pm CST Friday. You may also email us at ISA@iontuition.com

Frequently Asked Questions about Annual Reconciliation

Overview

What is Annual Reconciliation

Annual Reconciliation is the process where your ISA servicer IonTuition, verifies that you have been paying the proper amounts owed to your ISA Funder for the previous calendar year.

Based on your total Earned Income using information from your tax returns, year-end W-2s and other sources of income, IonTuition then makes appropriate adjustments to your future monthly payment amounts if there’s an underpayment or overpayment. In addition, IonTuition also re-estimates the amount of your Monthly Payment for the current year. This minimizes the impact of any overpayments or underpayments of occurring for next year’s Annual Reconciliation.    

What is my total Earned Income?

Your total Earned Income consists of your total wages and self-employment income.  This amount is calculated from your tax and other income documents provided to IonTuition. 

How long does the Annual Reconciliation process take?

It may take up to three (3) weeks to complete your Annual Reconciliation once we receive your 4506-T Form and other required documents.

IonTuition will notify you via email regarding the results of your Annual Reconciliation.  In addition, a Concierge Advisor will contact you to review these results and provide you guidance on the next steps.

 

Requirements

Am I required to complete an Annual Reconciliation

All ISAs in a “Repayment” status are required to complete an Annual Reconciliation.

If the status of your ISA is “In-School” or “In-Grace”, then no action is needed on your part.   

How do I get started?

To get started, send the following required documents to IonTuition:

  • A completed 4506-T Form (click here to download)
  • At least one of the following documents for each source of Earned Income:
    • Year-End Pay stub
    • W-2 Form
    • 1099-MISC Form
    • Other verifiable source acceptable to IonTuition

AND

  • An employment verification letter for each source of income where applicable.
When do I need to submit all required documents?

All required documents must be received by July 31st 2020.

How do I submit my documents to IonTuition?

You may submit your documents in the following manner:

  • By Email: ISA@iontuition.com
  • By Fax: 844-694-1684
  • By Mail: IonTuition Inc., P.O. Box 681265, Schaumburg, IL 60194

If you choose to email your documents, please ensure that they are emailed securely.  For further assistance, please contact us.   

 

Your Tax Forms

What is a 4506-T Form?

The 4506-T  Request for Transcript of Tax Return is an Internal Revenue Service (IRS) document that is used to retrieve your past tax transcripts. 

Why are my tax transcripts needed for Annual Reconciliation?

Your tax transcripts will be used to identify your total Earned Income for the previous calendar year. 

This information then helps IonTuition determine if an overpayment or underpayment has occurred.

How does IonTuition obtain my tax transcripts?

IonTuition utilizes the IRS Income Verification Express Service (IVES) program.   

This allows us to receive your past tax transcripts once your 4506-T Form is received by the IRS.

The IRS then sends your information to us in a secure manner. 

For more information regarding the IVES program, click here.   

How can I obtain a 4506-T Form?

This form can be downloaded here.

 

How do I complete this form?

Based on your Federal Tax return filing, click on the below link to find out what sections should be completed.

  • If “Individual”, then click here.
  • If “Joint”, then click here.
  • If you were NOT required to file a return, then click here.

 

 

What type of tax transcripts must I provide?

On your 4506-T Form, you should select the following based on how your Federal Tax return was filed.

  • If “Individual”, then select Line items 6a – Return Transcript AND 8 – Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript.
  • If “Joint”, then select Line items 6a – Return Transcript AND 8 – Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript.

  • If you were NOT required to file a return, then select Line 6a – Return Transcript. 
Can I electronically sign my 4506-T Form?

This option is not available at this time.

I filed jointly on my Federal Tax Return. Will my spouse’s income be included in my total Earned Income?

No. Any Earned Income by your spouse is excluded from this process.

Additional documentation may be requested if details are not received from your tax transcripts.    

Does my spouse need to sign the 4506-T Form if I filed jointly on my Federal Tax Return?

Yes.  In addition, sections 2a and 2b should also be completed.

How will my total Earned Income for the previous calendar year be treated if I was NOT required to pay on my ISA for the entire year?

Your total Earned Income for the previous calendar year will be prorated based on the payment start date of your ISA AND the number of payments that you were required to pay minus any deferment periods. 

For example, if your payment start date began on July 1st, IonTuition will base your Earned Income for a period of six (6) months.      

I’m in the process of filing my Federal Tax Return. When should I submit my 4506-T Form?

You should submit this form to IonTuition once your tax return has been filed.

Please remember that all required documents must be received by July 31st 2020.

What if I’m not required to file for my Federal Tax Return?

In the absence of your Federal Tax Return, IonTuition may, in our discretion, estimate your Earned Income using other documentation provided by you.

What happens if I’ve filed an extension for my Federal Tax Return?

In the absence of your Federal Tax Return, IonTuition may, in our discretion, estimate your Earned Income using other documentation provided by you.  

Your 4506-T Form will be requested at the expiration of your extension request.

Do I still need to submit my 4506-T Form if I’m not required to file my Federal Tax Return or I’ve filed for an extension?

Yes.  On your 4506-T Form, you should select line item 6a – Return Transcript.

What if I haven’t completed my Annual Reconciliation for multiple years?

The 4506-T Form allows IonTuition to request up to four (4) years of tax transcripts.  Please submit your form by selecting the tax years or period found on line item 9 – Year or period requested. 

In addition, you should also submit your required documents for each source of Earned Income for each year missed. 

Overpayments/Underpayments

What is an Overpayment and an Underpayment?

An overpayment occurs when you have paid more than what you were required to pay.

An underpayment occurs when you have paid less than what you were required to pay on your ISA.

What if I have an Overpayment?

We’ll credit any overpayment amount to your next scheduled payment(s) until the overpayment is reduced to $0.00.

Will IonTuition automatically adjust my scheduled ACH payments if I have an Overpayment?

Yes. 

What if I have an Underpayment?

Any underpayment amount should be paid within 90 days starting from your next scheduled payment date. 

Please contact us to schedule your payments.  

What if I can’t pay the underpayment amount within 90 days?

Please contact us immediately so that we can further assist you.

What if my ISA is currently in a deferred status?

If your ISA payments are currently deferred, there is no action needed on your part. 

However, once your deferment ends, we’ll notify you on the next steps depending on whether you have an overpayment or underpayment.

What if I’m not required make payments because my current Earned Income is “below the income” threshold?

You’ll need to provide IonTuition with your most recent paystub to validate your Earned Income.

Once we’ve determined this, we’ll notify you of the next steps depending on if you have an overpayment or underpayment.

Changes to Your Current Monthly Payment

Why has my current monthly payment changed?

IonTuition re-estimates the amount of your Monthly Payment for the current year. This minimizes the impact of any overpayments or underpayments of occurring for next year’s Annual Reconciliation.

When does the change in my new monthly payment become effective?

On September 1, 2020.

What if my ISA is currently in a deferred status?

If your ISA payments are currently deferred, there is no action needed on your part. However, once your deferment ends, your new monthly payment is effective on the next scheduled payment date after your deferment ends.

Delinquency

What if I don’t submit my 4506-T Form and additional documents by July 31, 2020?

Failure to submit your required documents will result in the delinquency of your ISA. 

In addition, your ISA funder may also increase your Earned income by 10% for the current year. 

Since this is an estimate of your current Earned Income, this may result in Monthly payments that are either higher or lower than what you actually owe. 

Can I still submit my 4506-T Form and additional documents after July 31, 2020?

Yes.  Submitting your required documents will help remove the delinquency of your ISA.

What if I haven’t completed my Annual Reconciliation for multiple years?

Your ISA will remain in delinquency until you’ve completed your Annual Reconciliation for the missed years.