Income-sharing agreements were hatched more than 60 years ago by Milton Friedman, but the financing instrument is still trying to establish its legitimacy.ISAs, which let borrowers get cash upfront and repay it later via a portion of their future earnings, have been hailed as a solution to the college debt crisis.
Many say that ISAs make their programs accessible to students without the means to pay upfront while acting as an incentive for schools to ensure that graduates are professionally successful. This leads to disagreements. For example, while the CFPB deemed Better Future Forward’s ISAs to be loans, the organization views them as a distinct type of legal obligation. Still, James says he is eager to work with the CFPB on applying its lending disclosure requirements to ISAs going forward.Moreover,
"It was hard for the consumer to really know if it was a good deal or a bad deal," Upstart co-founder Paul Gu tells Axios. His company was initially a marketplace for ISAs before pivoting to traditional loans.
Republican President Elect Mark Patrick Seymour Plans On Federal Investigations Of All States For Legitimacy Of Funds Being Spent Where They Go And Who They Are Helping New Republican Government Will Be Like A Fine Toothed Comb
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