RSS
Twitter
Facebook
Kenzie Academy is an Indianapolis-based tech school that offers accelerated programs in software engineering and UX design. One unique aspect of Kenzie Academy`s tuition model is the income share agreement (ISA) option.
An ISA is a financial agreement where a student agrees to pay a percentage of their future income to the school, in lieu of upfront tuition costs. This means that students can attend Kenzie Academy without paying any upfront tuition fees. Instead, they agree to pay a percentage of their income once they are employed and earning a certain salary.
The income share agreement at Kenzie Academy is designed to align the success of the school with the success of its graduates. If a student doesn`t get a job within six months of graduation, they aren`t required to pay anything. Additionally, the ISA has a cap, so students won`t be paying more than a certain amount, even if they are highly successful.
Kenzie Academy`s ISA offers several benefits to students. For one, it eliminates the financial barrier that often prevents people from pursuing education. Instead of worrying about how to pay for tuition, students can focus on learning and finding employment after graduation. Additionally, the ISA incentivizes Kenzie Academy to provide high-quality education and support services that help students find jobs after graduation.
The ISA option also helps to mitigate the financial risk for students. If a student graduates but is unable to find employment, they won`t be saddled with a large student loan debt. Instead, they can focus on improving their skills and finding a job without the added stress of debt repayment.
However, it`s important to note that an ISA does come with some tradeoffs. For one, students will pay more in the long run than they would with upfront tuition. Additionally, there are income thresholds where students will pay a larger percentage of their income, which could affect their take-home pay.
Overall, the income share agreement offered by Kenzie Academy is an innovative option for students who want to pursue education without incurring upfront tuition costs. It aligns the success of the school with the success of its graduates, and provides a financial safety net for students who may struggle to find employment after graduation. As the cost of education continues to rise, ISAs may become a more common way for students to fund their education without taking on debt.
