Many students turn to trade schools as an alternative to traditional four-year colleges, as they offer a more focused education and often result in a job in the field upon graduation. However, trade school can still be expensive, and students may need to consider financing options to cover the cost of tuition and other fees.
One option for financing trade school is a Payment Plan. With a Payment Plan, the student pays a fixed amount of money at regular intervals (set by school admin) until tuition is fully repaid. At Mia Share we have expanded our Payment Plans to include even more options that provide greater flexibility, such as Build-Your-Own Payment Plans and Deferred Tuition. Another great option for financing trade school is an Income Share Agreement (ISA). With an ISA, the student agrees to pay a percentage of their future income for a set period of time in exchange for funding their education. This can be a good option for students who are unsure of their future income prospects or who may not have the credit history or collateral to qualify for a traditional loan.
Payment Plans and Income Share Agreements are different financing solutions and ultimately, the best option for one student may not be the best for another. Some things to consider when evaluating financing options for your trade school include the overall cost of the program, the terms of the agreement (such as the repayment period and interest rate), and future income prospects. Here is a comparison of Income Share Agreements versus Payment Plans:
- Tuition Repayment With a payment plan, the student pays a fixed amount of money at regular intervals (such as monthly) until the debt is fully repaid. With an Income Share Agreement, the student agrees to pay a percentage of their future income for a set period of time.
- Financial Risk Payment plans involve a fixed amount of debt that must be repaid, regardless of the students's income or financial circumstances. However, due to interest-free repayment with Mia Share, it will not accumulate costs. With an Income Share Agreement, the student only pays when they are earning above a certain threshold, which means there is less risk of default.
- Flexibility Payment Plans are our most flexible options for institutions. While the payments are fixed, admin chooses the course deposit, repayment length, and cadence. If the student experiences financial difficulties, our dedicated servicing team ensures that they have the support to continue payments through financial hardship programs to mitigate any risk. With an Income Share Agreement, the payments are tied to the student's income, which means that the payments will automatically adjust if the borrower's income change creating overall more flexibility for the student.
- Upfront Cost Payment Plans require students to pay a down-payment or make a deposit before the course begins. Depending on your industry, school admin is able to set their own deposit amount to match their tuition costs. With an Income Share Agreement, the student may not have to pay anything upfront. At Mia Share, we offer different funding options for Income Share Agreements, book a meeting with one of our representatives to learn more.
Income Share Agreements and Payment Plans are two options that can help students pay for trade school, in turn, driving inquiries and increasing enrollment for your school. It's important to carefully consider the terms of each option and which works best for your students. While Payment Plans involve a fixed amount of debt that must be repaid regardless of income, Income Share Agreements gather interest and adjust payments based on the students' income. Both options have their own advantages and it's up to the school to decide which option is best for them. Regardless of which option is chosen, it's crucial to provide students with financing options to increase accessibility to life-changing education. If you would like to learn more about our financing solutions and our new Payment Plans at Mia Share, book a meeting here.