Under the terms of a typical ISA, students agree to pay a percentage of their future earnings for a predetermined period in exchange for help up front with their tuition. Companies could see ISAs as a way to attract future employees, by pledging to help pay their tuition in return for future years of service—and repayment. Many ISAs are structured so that students pay them back in less than 10 years. The 161 students participating last academic year secured financing of $2.1 million through the program, Mr. Cooper says. If Purdue students in the program want to prepay their obligation, they will pay back 2.5 times the initial funding amount.

Source: Wall Street Journal September 11, 2017 02:15 UTC