Purdue University will be the first American university in recent years to take an unconventional approach to funding student education.
Incoming junior and senior students at the university can add an income-share agreement (ISA) to their list of tuition financing options this fall. “Back a Boiler” is a unique alternative to loans in that the ISA possesses no interest rate. Brian Edelman, the project manager at “Back a Boiler” said an income-share agreement is similar to owning stock in a company.
Funds distributed are based on the projected income a student’s major is expected to yield. For example, a student majoring in chemical engineering would qualify for more funding than a liberal arts major would.
With so many students crippled in debt, could this new approach help alleviate repayment-related stress? Would you be willing to opt for an ISA if you needed supplemental tuition funds?