close button

This is the definition that will explain the concept of this word. This is the definition that will explain the concept of this word. This is the definition that will explain the concept of this word.

Morgan Avatar
emma Avatar

What is an Income Share Agreement?

To understand how an Income Share Agreement (ISA) works in practice, keep scrolling to follow three different borrowers on their ISA journeys.

emma Avatar



Earnings Path: Stable

Emma needs help paying for school. Rather than taking out a loan, she takes advantage of an Income Share Agreement (ISA) program.

emma and friends leap for joy

With an ISA, Emma receives money for school and agrees to pay a percentage of her income after graduation.

The key terms of this agreement are:

Emma receives $10,000. When she earns more than the $40,000 income threshold, she pays 5% income share up to an annual payment limit of $5,000.

Her ISA terminates once she has either made 72 monthly payments, reached the total payment cap of $15,000, or the 10 year contract term is over.

We’ll start tracking the three ways Emma’s ISA could conclude from here, which are:

1. By exceeding the max. contract period,

2. By reaching the max. number of payments, and

3. By meeting the total payment cap

After graduation, Emma finds a dream job. The pay starts low, but there are many opportunities for advancement.

Luckily she doesn’t have to make any payments, since her earnings are less than the ISA’s $40,000 minimum salary requirement.

Before long, Emma receives her first promotion and her earnings exceed $40,000, which means her monthly payments of 5% of her salary begin.

She is happy in her job, staying with her employer for many years, paying gradually increasing amounts as her salary increases over time.

emma sitting at work
emma sitting at work

As Emma continues making payments, she moves closer to completing her ISA through one of the three triggers.

Seven years after graduating, Emma makes her 72nd payment, triggering the end of her ISA obligation.

Emma makes final payment Emma jumps with joy

Key Benefits

Emma took a dream job with a lower initial salary, knowing that her ISA payments would be on hold while she invested in her long-term career.

Emma’s payments were always affordable, with higher payments coming later as her career and salary took off.

She met the maximum number of monthly payments, meaning that she left the ISA obligation before the 10 year maximum contract term.

This tool is meant only to provide a brief explanation of how ISAs can work in practice.

As with loans and other financing options, individual ISA contracts will vary and may include additional terms not discussed here such as: prepayment options, emergency forbearance, late payment penalties, among others.

Always review the specific terms of your financing options and choose the one that is the best fit for you.

Emma Avatar

Emma’s Summary

Her ISA ended after she made the required number of payments.

  • Average income earner
  • $10k ISA amount
  • $14,075 repaid over 72 payments



Want to see a different path?

Tap below to see a different way an ISA might play out:


Sign up below to be the first to know about ISA news, innovations, and Outcome accouncements.

Want to connect? Contact us.

Emma Payment Graphs Ava Payment Graphs Morgan Payment Graphs


Yearly Salary
Emma Salary Graph
Monthly Payments
Emma Monthly Payment Graph
ISA Terms Graph