However, there are significant differences of opinion on good federal oversight. Vemo supports the bipartisan laws introduced by young in July that would place ISAs under the responsibility of the Consumer Financial Protection Bureau. However, consumer advocates believe that the Ministry of Education also has a role to play in monitoring contracts. And Darcus argues that Senate legislation essentially provides exceptions in existing plans for income-participation agreements. Even if everyone gets the same interest rate, credit strongly discriminates disproportionately at the dimension that is really important: affordable. Under a loan program with the same conditions for all borrowers, a group that earns less despite identical qualifications has an income proportionately lower than that of the other group after the repayment of that loan. To the extent that any systematic difference in income between two groups is unfair, credit amplifies injustice. If ISAs include groups with similar qualifications but different income potential, ISAs will address in part the injustice that reinforces credit.  When the program was officially launched in Messiah last fall, nearly half of the approximately 40 participating students were newcomers. Walker said for some of these students that the option of entering into an income participation agreement was taken into account in their decision to enroll.
Contracts require students to repay a portion of their future income for a number of years, instead of taking out student loans to meet unmet financial needs. The concept was first tested in short-term programs such as bootcamp coding, but it is also increasingly advanced as an option for students in traditional colleges. Let`s take an example: a student withdraws $10,000 worth of ISA funds. They end up with a starting salary of $30,000. The ISA`s repayment is 7% of its income for 10 years. That means $2,100 a year when the student earns $30,000. If, after four years, students` salaries increase to 34k and then 38k after four more years, they will pay back far more than the amount borrowed. Below is a breakdown of depreciation: income-participation agreements attract the attention of the legislator, although relatively few students have registered so far for the alternative loan.