ISA stands for income share agreement: a special contract in which an organization such as a bootcamp offers loans to pay for a student’s education, with the student committing to repay after they graduate, based on their future salary.
A student enters into an ISA. For 2 years they agree to pay from 17% of their income monthly on the condition that their salary is higher than $50,000 per year. The student does not have to make any repayments if their income is lower than this figure.If their income is much higher than average (e.g. $150,000), the maximum amount the student will pay – x2 to the cost of the ISA.
Income Share Percentage
Amount of their salary a student pays monthly.
Number of payments a student makes.
Maximum size of repayments vs the cost of the ISA.
Minimum monthly salary before the student will start repaying their ISA; if their salary falls below this figure, the repayments are paused.
Sure, taking into account that all investment activities involve a degree of risk. Firstly, your investments are processed through the secure payment gateway, Stripe. Secondly, the money you invest in bootcamps is held in a secure escrow until the bootcamp issues ISAs. Where ISAs are not issued: your money is returned to you.
Yes. Vedai follows the rules of Reg CF (Regulation Crowdfunding), or the JOBS Act, which allows anyone to invest, no matter what their income is. For comparison: to qualify as an accredited investor and be able to trade securities, you must have a net worth that exceeds $1 million.
Once people whose ISAs you invested in graduate, find a job, and start repaying, you get part of the monthly repayments. You will be able to see the status of all your investments/returns in your Vedai account. Returns can be withdrawn or reinvested within the platform.
Receive repayments from the ISAs This strategy takes the longest, but brings the maximum return.
Sell your shares in ISAsIn a similar way, you can buy ISA shares from other people.