09 June 2020

New model ISA : study without paying a fee, pay when you get a job and succeed!

Education, among India’s fastest-growing sectors, is now particularly conducive to innovation, especially when it comes to financing quality education. Here, the idea of income share agreements (ISA) is very relevant.

Image Source : Economic Times
There are many challenges when it comes to affordability of students who wish to pursue studies even meritorous ones in all areas like  skilling, upskilling and career focused programmes in India. This model will help solve that for sure, 

As of now, startups offering the ISA model in India are AttainU, InterviewBit, Pesto Tech, AltCampus.

All of them have placed in good companies and have indeed paid back all the companies. This is what is true success.  A win-win situation in all respects.

The time for this initiative has arrived. What one needs is regulation so that it is used everywhere.

We do know of course that human resources are our strength and we only need to make use of this. If finance is an issue, the ISA is clear the way forward.

What is needed, definitely, is clear regulation in case ISA becomes a widely accepted model. Regulator of lenders — and UGC/HRD ministry — the regulators of education — may be relevant.

India indeed is moving fast everywhere. It is time we adopted this model quickly to make complete use of our potential resources, who are students with passion.

For loan repayment schedules, an algorithm is usually in place. This does need to be taken more seriously. As all companies are in the technical field, they do this quite well.  ISA players manage good returns if a student delivers above-average performance. Returns do drop for average or below-average performance. Still, it is usually a win-win solution. The repayment period is usually 2-3 years. However, there could be some glitches if this procedure is not tested and ratified. 

What is needed, is clear regulation 

We do need to work on it soon..

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