The ISSA adds security precautions – legal limits, how much future income a student can spend to repay an ISA, and how much the student must repay. In addition, ISA lenders must disclose the exact terms of the ISA and how they are compared to a fixed-rate loan. Finally, it ensures that students do not get bogged down in other government regulations when using an ISA. ISA money will not be perceived as income when students find out if they are eligible for federal education scholarships or loans, and students do not have to pay income taxes for the money they use to repay an ISA. Some fear that ISAs will have the effect of “creaming” the best students and funding only elite institutions. However, ISAs should theoretically fund all economically viable programs (i.e., the future income of their graduates is proportional to the cost of the degree), so the only way that could be true is that the vast majority of institutions are not economically viable.  According to the pay-as-You Earn repayment plan, the borrower`s monthly payments are 10% of discretion income, i.e..dem amount corresponding to Adjusted Gross Income (AGI) above 150% of the poverty line. Monthly payments are also limited to the amount they would pay below the usual 10-year repayment. [With an ordinary student loan] my nominal monthly payment is set, but my income could change or disappear completely (making security a monthly repeat of bad news). In the case of an income-involved contract, it is the opposite: I do not know what my monthly nominal payment will be over the lifetime, nor the total amount I will pay, but I know I can always afford it.  However, lenders can respond to losses by increasing the price of ISAs for borrowers based on the college visited, the field of study, geographic location, the average grade (MPA) of the student and the number of years up to the diploma. There is also concern that lenders may practice a form of redlining in which they will refuse to make available to ISA borrowers with lower incomes after closing. This is why low-income students do not fear ISAs as they fear.
Studies show that income-based reimbursements make students` career outcomes more effective because they make the job search process less expensive.   (This piece was originally published on 07.11.2013, but was lost due to technical problems and is therefore re-published here. Last week, Oregon`s legislature passed a bill that, if signed by the governor, will implement a pilot program to examine the impact and impact and feasibility of pre-study payments through income-based post-graduated payments. For 24 years after… But an ISA is a loan, because the recipient of credits makes payments for a specified period in order to fulfill a contractual obligation.