Lackawanna College Offers Students Income-Sharing Deal
Students at Lackawanna College, a private nonprofit institution in Northeastern Pennsylvania, can now fund part of their college costs with an income share agreement (ISA), an arrangement that pays the institution a set percentage of their income after graduation. To create the program, Lackawanna partnered with Vemo Education, which describes itself as "an education technology company that helps colleges and universities develop, launch and implement income share agreements and other income-based approaches to student finance."
An alternative to the traditional student loan, ISAs adjust student payments based on income — so the cost of students' education is essentially dependent on the success they achieve once in the workforce. And conversely, students' payments are reduced when they make less than expected after graduating.
"Affordability has always been a hallmark of Lackawanna College, and our institution has a long history of innovative thinking to provide students with high-quality educational opportunities at low costs," said Lackawanna College President Mark Volk in a statement. "Income share agreements provide an opportunity to align our interests with those of our students, which fits perfectly with our mission to ease the burden of college costs."
"Income share agreements are based on the premise that the cost of college should be based on a student's potential, not her parents' tax returns," commented Tonio DeSorrento, co-founder and CEO of Vemo Education. "From affordable tuition to innovative academic programs linked to in-demand jobs, Lackawanna College is a standout institution. We're proud to help further the institution's longstanding commitment to improve the lives of its students and the communities in which they live."
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Rhea Kelly is editor in chief for Campus Technology, THE Journal, and Spaces4Learning. She can be reached at [email protected].