Income Share Agreement Format

If you`re considering financing your education or career, you may be familiar with the concept of an Income Share Agreement (ISA). In this article, we will take a closer look at the ISA format and what you need to know to make an informed decision.

What is an Income Share Agreement?

An Income Share Agreement is a financing option that allows you to pay for your education or career training by agreeing to pay a percentage of your future income for a set period of time, rather than taking out a traditional loan. ISAs are typically used to pay for education, particularly coding bootcamps or other short-term career training programs.

How does an Income Share Agreement work?

With an ISA, a percentage of your earnings is paid to the ISA provider for a set number of years. The percentage you pay and the length of time you pay vary based on the agreement you enter into. Some income share agreements may require you to pay a set percentage of your earnings for a fixed number of years, while others may have a cap on how much you pay back.

What are the advantages of an Income Share Agreement?

One of the main advantages of an ISA is that it allows you to defer payment until you have secured a job in your chosen field. Additionally, because the amount you pay is based on your income, you will not be burdened by large monthly payments when you first get started in your career.

Another advantage of ISAs is that they are often easier to obtain than traditional loans. Many ISA providers do not require a credit check or collateral, making them more accessible to individuals who may not qualify for traditional financing.

What are the disadvantages of an Income Share Agreement?

While ISAs can be a good way to finance your education or career, they are not without their drawbacks. One of the main disadvantages is that the cost of an ISA can be higher than that of a traditional loan. This is because you are paying a percentage of your income, rather than a set interest rate.

Additionally, the percentage of your income that you will be required to pay can be high, particularly if you have a high-paying job. This can make it difficult to budget for other expenses, particularly if you are just starting out in your career.


If you`re considering taking out an Income Share Agreement to finance your education or career, it is important to carefully consider the terms of the agreement and understand the potential advantages and disadvantages. By doing so, you can make an informed decision that will help you achieve your goals without putting undue financial strain on yourself in the long run.