Clarusway Income Share Agreement (ISA)

An ISA is a legal contract between a student and Clarusway. ISAs are not a form of debt, nor are they a loan. They have no interest rate or principal balance. The ISA contract outlines that in exchange for the provision of an education to a student, said student agrees to pay a fixed percentage of their income for a fixed duration of time. Payment occurs when the student is employed and earning above a predetermined minimum salary. ISA contracts have Payment Caps that clearly indicate the most a student would pay given the terms of their ISA contract.

The Benefits Of Income Share Agreement

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No unnecessary financial risk

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Attend school for no money down

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Only make payments when you achieve career success

The Terms Of Income Share Agreement

ISA%
Fixed percentage of pre-tax
income 12.5%

Payment Term
Set number of payment
months 18 months

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Minimum Income Threshold
Student doesn’t pay unless earning
above $40,000

Payment Cap
The maximum a student
(obligor) all ever pay $20000

Maximum Deferment Period
ISA forgiven if reached
60 months

The Questions About Income Share Agreement

How do I apply ?

Your school will guide you to a secure application page tied to the specific program you are looking to attend. The application is all online and typically takes less than 5 minutes to complete and applying will not affect your credit score.

Will I be approved?

ISAs are designed to increase access to quality education. Consult with your school as to whether ISAs are a fit for you given their approval parameters. A co-signer is not needed.

When do payments begin?

Once you complete the program, Leif will work with you to verify your income. Once you are earning above the Minimum Income Threshold, you will make monthly payments of 12.5% of your pre-tax monthly income through the Leif portal.

What is the interest rate?

Because ISAs are not traditional debt, there is no set interest rate or accrued interest.

How much will I pay?

You will stop making payments once you reach the sooner of 18 Qualified Payment Months or when you hit the Payment Cap. You will never pay more than the Payment Cap and if you don’t earn $40K or above, your ISA will be forgiven after 5 years even though you paid nothing at all.

What if I lose my job?

If you lose your job or earn below the Minimum Income Threshold, you will be placed into the Deferment Period and no payments will be due again until you are earning above the Minimum Income Threshold again.

Key Takeaways About ISA

  • Instead of paying tuition upfront, enrolled students may choose to sign an ISA.
  • An ISA is a legally binding agreement representing a responsibility to pay Clarusway a portion of future income.
  • ISAs are not a form of debt, nor are they a loan. They have no interest rate or principal balance.
  • Students who elect the ISA option agree to pay 12.5% of post-Clarusway gross income (i.e., before taxes) with 18 monthly payments, but only when students are earning equal to or more than $40,000 per year.
  • The ISA option is capped at a maximum of $20,000.
  • If the student has earned less than $40,000 for a total of 60 months after completing the Clarusway program, their ISA is cancelled, regardless of amount paid to date.
  • If students get a job before graduation, they are not considered withdrawn and their ISA will be due in full.

ISA Calculator

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Who is Leif

Leif is our school’s ISA Program Manager. You will make an account on Leif’s platform to apply for your ISA, review and sign your contract, and eventually to report income and make payments. Read more details