April 4, 2016
Purdue launches innovative college funding model
Purdue University today (April 4) became the first major research university in the United States to offer an income share agreement (ISA) as an alternative to Federal Plus and private student loans with the official launch of the Back a Boiler -- ISA Fund.
The program, made available through the Purdue Research Foundation, will be available to a limited number of rising Purdue junior- and senior-level students in academic year 2016-17.
Back a Boiler is designed to offer students and their families an alternative financing option in which a student receives education funding in exchange for an agreed-upon percentage of post-graduation income over a set number of years. The Back a Boiler -- ISA Fund payback period will be nine years or less. An ISA has no principal balance or interest, so its payments adjust with the student's income over the life of the contract and payments don't begin until the student is employed and at a salary above a previously established minimum.
Students and parents who want to learn more about the program should visit BackABoiler.org, where they can find additional information, including an FAQ about the program, eligibility requirements and a comparison tool to compare an ISA with other financial aid options. The enrollment period to apply for Purdue's ISA will begin in May.
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