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#42 ยท AL-47 ยท Student Finance & Debt

ISA vs. Student Loan
Comparator

Income Share Agreements are income insurance โ€” you pay less if earnings are low, but potentially far more if earnings are high. This tool models total repayment, NPV, break-even income, and year-by-year cash flow for both options under your expected income trajectory.

Zero external data โ€” all calculations are pure math on your inputs. ISA terms vary by provider; verify before signing.

Your Income Trajectory Applies to both scenarios
Expected salary upon graduation / program completion
US median: ~3.5โ€“4%; adjust for your field
Real opportunity cost of money; 4% is a reasonable baseline
Financing Terms
โ–ธ Income Share Agreement (ISA)
% of gross monthly income owed
Duration of income share obligation
Max total ever owed (0 = no cap)
Minimum annual income before payments start
โ–ธ Student Loan
Federal grad rate 2024โ€“25: 7.05% ยท undergrad: 6.53%
Standard: 120 months (10 yr)
Capitalized interest during deferral
Total Repayment Comparison
Year-by-Year Cash Flow
ISA is income insurance, not a loan. Unlike a loan, there is no interest rate โ€” your obligation is a fixed percentage of income for a fixed period, capped at the repayment maximum. If your income falls, payments fall. If your income stays permanently low, you may repay far less than the funded amount. If your income rises fast, the cap protects you from unlimited liability.

Key negotiating points: income floor (minimum salary before payments start), payment cap (total max owed), and term. Always get these in writing. See the studentaid.gov ISA guidance for federal context.
Policy Mandate v2.0 ยท what is this?