Just in time for their fall cohort, BrainStation has added income sharing agreements to its payment and financing plan options in Vancouver, allowing students to defer payment until they are employed and earning a minimum level of income.
Capitalizing on the income share trend in the digital skills training space, BrainStation is the first educational institution to offer income sharing agreements (ISA) in Vancouver.
But what are ISAs?
To put it simply, an ISA is a tuition financing model where students agree to pay a percentage of their salary to the coding bootcamp for a specific amount of time after completing their program and landing a job — rather than paying tuition up front.
The concept, first proposed by economist Milton Friedman in the 1950s as a “human capital contract,” has been heralded by some as a market-based solution to student debt.
In the case of BrainStation, students only have to make a small down payment to start a diploma program and they will only begin paying back tuition once they are earning more than $40,000 per year.
The BrainStation ISA features a 96-month payment term, which means that payment obligations continue for 96 months or until the payment cap has been paid in full. BrainStation ISAs cap total payment at 1.5x of tuition, an extremely competitive rate relative to many other institutions.
And if in any month, a student earns less than the minimum income threshold, payments are paused.
“Our mission is to empower as many professionals as possible to help close the global skills gap. Adding ISAs to our already comprehensive payment and financing plan options is part of that mission, making premium digital skills more accessible,” says Jason Field, BrainStation Founder and CEO.
“ISAs can remove financial barriers and better align tuition costs with post-program income. We feel it will allow a larger group of people to explore career transforming educational opportunities.”
ISAs are currently available for students enrolled in 12-week diploma programs in Data Science, Web Development, and User Experience Design at the BrainStation Vancouver campus.