Purdue announces new way to pay for an education

(WISH photo)

WEST LAFAYETTE, Ind. (WLFI) – Purdue University has announced a new way to possibly help students pay for higher education.

The Purdue Research Foundation has launched a search to find a partner firm to establish an income share agreement, or ISA funds.

The agreements would give students the option to have their education costs paid for by investors, in exchange for agreeing to pay a percentage of their future income for a set period of time. Unlike loan interest, payments would adjust to the graduate’s income.

President Mitch Daniels says it may not be for everybody — but it could be worth it for some.

“It shifts the risk completely from the student who is on the hook for student debt, even in bankruptcy, can’t escape it, no matter what life brings,” said Daniels.

Daniels hinted at this announcement in March during testimony before a congressional panel about the Higher Education Act.

Once a firm is chosen, the plan is to start offering the program this spring.

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