One such groundbreaking concept gaining traction these days is the Income Sharing Arrangement (ISA) or, as it's colloquially known, Pay After Placement.This is a novel means to study as well as get placements.  Education expenses, especially for specialized and marketable courses, can be burdensome for many families. Traditional loans and scholarships often fall short, prompting the need for alternative financial solutions. The ISA emerges as a beacon of hope, simplifying the process of providing financial aid for quality education.The concept of ISA involves students entering into a contract where they receive training either for free or at a reduced cost. Post-training, students agree to pay back a percentage of their income over a specified period. This not only reduces the financial risk for education lenders but also aligns the success of educational institutions with the employability of their graduates.Although ISAs are well-established in many countries, India is just beginning to embrace this innovative model. Several startups are pioneering the ISA trend, particularly for postgraduate studies in technical and specialized fields crucial for the current job market.How ISAs Work:Typically, after completing a course, ISA companies guarantee a minimum annual salary, often based on the Cost to Diploma Ratio (CDC), of Rs 5 lakh. Students, in turn, commit to repaying 15 percent of their salary for a predetermined period, usually spanning 2-3 years. This deferred payment model operates in collaboration with Non-Banking Financial Companies (NBFCs) or Fintech companies, eliminating the need for students to pay interest on tuition fees during their studies.Noteworthy Companies Leading the ISA Wave in India:AttainU (www.attainu.com): A platform offering high-quality, affordable education in software engineering.InterviewBit (www.interviewbit.com): Focused on preparing students for tech industry interviews through online coding challenges and mentorship.Masai School (www.masaischool.com): Specializing in coding education with an income-sharing model for software development courses.AltCampus (www.altcampus.com): Providing a full-stack web development course with a pay-after-placement structure.Newton School (www.newtonschool.co): Offering Income Sharing Agreements for software engineering courses.Coding Ninjas (www.codingninjas.com): A coding education platform adopting ISA to support students in their journey to becoming proficient programmers.As India embraces this transformative education financing model, ISA not only enables deserving students to access quality education but also ensures that institutions are incentivized to deliver courses aligned with industry demands. For further inquiries, you can reach out to Sethuraman Sattappan via email at Sethuraman.sathappan@gmail.com or by phone at 98204 51259. Visit www.startupandbusinessnews.com for more information.
---Sethuraman Sattappan