Edly’s Solution

Income Sharing Products offer an alternative to student loans that’s designed to be more affordable and accessible for students.

The student debt crisis is well known for its staggering statistics.

Those numbers, however, don’t tell the whole story. Behind them are countless other problems caused by student debt including income inequality, education access limitations, and social immobility. One of the main contributors to these problems is the high cost and inflexibility of private student loans.

Income Sharing Products are Edly’s solution.

Income Sharing Products (“IBRs” and “ISAs”) are designed to be an affordable and flexible alternative to private student loans.

Students pay when they can

Students pay a fixed percentage of their earnings – only when and IF they earn over a certain threshold income. Payments are made over a fixed payment term and are designed to be affordable.

Capped amounts and no accrued interest

Unlike traditional student loans, there is never accrued interest. The total amount of payments over the term of the ISA are capped at an amount which is usually around 1.5 times the amount of tuition. IBRs are capped at the earlier of i)2.25x cap or ii) 23% APR cap.

Students can pay less than loans

Depending on a student’s income, the total payments over the term of the IBR/ISA will often be less than the payment cap and may even be less than the tuition amount.

Alignment of interests

ISA providers require schools to align their financial incentives with students and investors. Edly tries to align the interests of investors, students, and schools if possible.

IBRs align the financial incentives with students and investors. By setting the APR cap, students benefit from paying early and investors are protected from delays in student payments.

Ready to invest in higher education?