Income Share Agreement (ISA)
(For Full Stack Development Certificate Program Only)
Bottega University is excited to offer the MentorWorks Income Share Agreement (ISA) program issued by Blue Ridge Bank, N.A. as a payment option for students in eligible programs.
What are ISAs?
An ISA is different from a traditional fixed payment installment loan. In short, students pay a percentage of their future income for a set period of time, up to a maximum cap, without accruing interest.
Unlike a loan, students do not pay until they find a job and reach the minimum income threshold. The payments adjust according to the level of the student’s income – a true outcome-based model with other downside protections for the student!
Learn more about the MentorWorks ISA program issued by Blue Ridge Bank, N.A. here.
Reach out to the MentorWorks team directly with any questions about ISAs either through email (firstname.lastname@example.org) or use the chat option on their website for more information.
Based upon the information you provide, you may be eligible for an ISA amount of:
$1,000 to $12,000
Based on your request for an ISA to cover all or part of your tuition, your income share rate for every $1,000 of funding will be:
0.65% to 0.96%
your total earned income over a payment term of: 42-66 months
Your obligation during the life of the ISA:
- Your income share is the percentage of your future earned income you will owe in return for the ISA amount credited to your account with Bottega University. It is not an interest rate or an annual percentage rate.
- Your income share is fixed. It will be based upon your income share rate and your ISA amount.
- Your payment will vary based on your earned income. The total amount you will pay may be more or less than your ISA amount.
- The maximum you will pay is 1.5 times your ISA amount over the payment term, regardless of your earned income. You may also pay the lower of this maximum amount or the then applicable pre-payment amount (less any payments made to date plus any outstanding fees) in order to extinguish your obligations before the payment term ends.
- Late Fee – 5% of the payment amount due, up to a maximum of $5.
- Returned Payment Fee – $35.
Your education is important. You should be aware of different sources of financing available for higher education. An ISA is different from a traditional fixed payment installment loan (which has principal and interest payments) or a conventional tuition payment plan (which requires payment in full and may include interest charges). An ISA requires you to pay a fixed percentage of your Earned Income each month for a fixed period of time. The payments under your ISA will vary with your income. The table below compares illustrative monthly and total ISA payments for different levels of Earned Income.
The following table is for informational purposes only and explains the total and monthly costs of your ISA at various income levels. Your income will likely change over time. For simplicity, the table assumes your income is consistent throughout the entire term.
- This illustration assumes that you make up to 42 Monthly Payments tied to total Earned Income and that your income does not change during the term of your ISA.
- When your monthly Earned Income is less than $2,083 (equivalent to $25,000 per year), your account will be placed in a deferment status, and you will not make payments during those months that your income is below this threshold.
- If your cumulative payments (not including fees or collection costs) reach the lower of the Payment Cap or the then-applicable Pre-payment Amount, then you will make no further payments, and your ISA will be considered paid in full.
- Since your earnings may change over time, your actual payments may also vary over time, so this illustration may not apply to your specific circumstances.
* The Monthly Payment may be lower for the last month’s payment if your cumulative payments (not including fees and collection costs) reach the lower of the Payment Cap or the then applicable Pre-payment Amount.
** In these scenarios, total payments and the number of Monthly Payments made are lower because the cumulative payments (not including fees and collection costs) reach the lower of the Payment Cap or the then applicable Pre-payment Amount.