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Stanford Law School tries out income-share financing

September 22, 2022

Income-share agreements have emerged as controversial financing tools in an era of high college costs.

The model’s backers say enabling students to pay for their education with a percentage of their post-graduation earnings ensures they won’t face ruinous amounts of debt. But ISA detractors argue these deals can leave students paying back more than if they’d taken out loans, and that borrowers don’t always understand terms of such agreements.

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