MAXIMUM PORTFOLIO ALLOCATION
Income sharing agreements are popular mechanisms for funding students and earning a share of their future income. We back students with capital to pay their tuition and in return they pay us a percentage of their income, between 6% to 17% per annum after they start working. Payouts generally have a cap such as twice the original investment or a fixed sum such as $50,000. With online loans, students do not have to pay when they are between jobs or go to study further.
The value of outstanding student loans in the US has surpassed the GDP of England. And it keeps rising. Tuition at public four-year colleges rose by 36% from 2008 to 2018; in many states, even higher. Today, state funding per student is 8.7% less than it was before the Great Recession.
Source: Source: US Department of College Education scorecard and Forbes.com
The median annual earnings for an Ivy League graduate after 10 years are well over $70,000 a year. For graduates of all other schools, the median is around $34,000. The top 10% of Ivy League grads are earning $200,000 or more ten years after starting school. The top earners of other schools, on the other hand, are making just a hair under $70,000.
Source: US Department of College Education scorecard & Washingtonpost.com
We invest in students from top universities and professional upskilling schools like Pathrise and Insight Fellowship. We focus on students in fields like computer science, data science, artificial intelligence, nursing, pediatrics, dentistry and more. Investments are structured as ISAs (Income Sharing Agreements).