Fulfilling an ISA

There are two ways to fulfill an ISA, plus a payment window that includes a built-in ISA expiration date.

Everyone’s path after graduation looks different. But no matter what, your ISA will end one of three ways. To get an idea of how your ISA experience might unfold, take a look at Maya’s example below.

01.

December 2019: Maya signs her last ISA

In her senior year, Maya carefully reads and signs her final ISA contract for $3,000. This contract brings her total funding amount to $12,000 over four years. This results in the following terms:

  • ISA Amount: $12,000
  • Income Share: 3.6%
  • Max Monthly Payments: 90
  • Payment Cap: 1x ($12,000)
  • Payment Window: 150 months
  • Min Income Threshold: $2,916.67/month ($35,000/year)
02.

May 2020: Maya graduates from Messiah

With the help of ISA funding, Maya graduates at the end of the school year.

03.

May 2020: Maya enters her grace period

Maya’s 6-month grace period begins the day after graduation. At this point, her ISA experience will unfold one of three ways. Maya’s employment and income could follow any number of trajectories, but no matter what, her ISA will end as soon as she reaches one of these endpoints:

  • 90 payments (maximum monthly payments)
  • $12,000 total payments (payment cap)
  • 150 months (payment window)

To see Maya’s variable payment experiences, toggle between endpoints in the table below.

Maximum Monthly Payments

ISAs define a maximum number of monthly income-based payments. Once you make that number of payments, your ISA ends—even if you’ve paid less than the initial funding amount.

04.

June 2020

Maya is hired for a job with a salary of $36,000, or $3,000/month. She submits income documentation for ISA servicing during her grace period.

05.

January 2021

Maya’s first monthly payment is due. (Monthly payment = gross monthly income x income share)

06.

February 2021–December 2026

Maya continues making monthly payments and submitting income documentation. Her income may fluctuate with raises or job changes, but her income share will remain 3.6%.

07.

June 2028

Maya makes the maximum monthly payments, effectively ending her ISA obligation.

*All figures in this illustration have been rounded to the nearest dollar. They are for illustrative purposes only and are not predictions of your unique payment experience. Actual ISA terms, earnings amounts, and payment experiences will vary.

Payment Cap

Over the course of making monthly income-based payments, you may hit the payment cap. Hitting the payment cap ends your ISA—even if you’ve made fewer than the maximum number of monthly payments.

04.

June 2020

Maya is hired for a job with a salary of $40,000, or $3,333/month. She submits income documentation for ISA servicing during her grace period.

05.

January 2021

Maya’s first monthly payment is due. (Monthly payment = gross monthly income x income share)

06.

February 2021–December 2026

Maya continues making monthly payments and submitting income documentation. Her income may fluctuate with raises or job changes, but her income share will remain 3.6%.

07.

June 2028

Maya hits the payment cap, effectively ending her ISA obligation.

*All figures in this illustration have been rounded to the nearest dollar. They are for illustrative purposes only and are not predictions of your unique payment experience. Actual ISA terms, earnings amounts, and payment experiences will vary.