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We are a 501(c)(3) nonprofit leading a movement in education finance reform. We offer income share agreements (ISAs) to students who participate in select college access and success programs in Minnesota, Wisconsin, and Illinois.
 

 Learn About the Opportunity ISA

Better Future Forward (BFF) created the Opportunity ISA because we believe students should not have to put their future financial health at risk to get support for their education.

  • BFF believes that all students should have access to quality educational pathways and a fulfilling life.

  • BFF believes student’s payments should adjust if their income changes.

  • BFF believes that students’ shouldn't have to worry about paying if they are unable to or cannot find work.

 
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What is an ISA?

An Income Share Agreement (ISA) is a financial product where, after receiving funds to help cover your education, you agree to make a fixed number of income-determined monthly payments after you leave school (and following a Transition Period). You will only have an obligation to make payments in months where you are earning above a minimum amount. 

An ISA is a financial obligation you pay after your undergraduate education. 

The total amount you pay for your ISA is calculated based on your income after you graduate or withdraw, not simply your funding amount. Some students will pay more than their funded amount. Students who don’t do well financially may pay less than their funded amount.

To learn more, please see our Application and Solicitation Disclosure.

 

How does the Opportunity ISA work?

When you need funding for college, BFF provides the money directly to your school, on your behalf. Currently, our funding amounts range from $1,000 to $50,000. This amount is your funding amount. The percentage of your income is based on your funding amount, with higher amounts requiring a higher income percentage. The percentage of income will be between 0.25% and 9.5%.* The percentage of income won't change over the lifetime of your ISA.

Here is how we calculate your income-determined payments:

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Monthly Income x Set % of Income = Monthly Payment

After school, you make payments calculated by multiplying a set percentage by your income each month. These payments are called income-determined payments. The payments are calculated based on the income you make when you are earning above the lower income cut-off. Any time your income changes, your payments will change.

 

The ISA has three different periods.

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In School

While you are enrolled, you do not have to make payments towards your ISA. Instead, we want you to focus on your education and your path to graduation.

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In Transition

When you graduate or withdraw, a 6-month Transition Period will begin. Your payments do not begin until after your Transition Period has concluded. During this time, you're required to make an account with BFF's 3rd-party tech platform and submit your income. 


This is where you'll track your ISA, make payments (automatically or manually), and submit your current income.

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In Payment

The payment window begins immediately after the Transition Period. Your payment window is the number of months, excluding in-school and transition periods and other periods of payment relief pause, that you are required to make payments linked to your income when your income is above the lower income cut-off. The length of the payment window is set when you sign your ISA.

 

What protections are included in the Opportunity ISA?

BFF has designed its ISA to be protective for students.

+ Lower Income Cut-Off

BFF’s ISA comes with a lower income cut-off of $47,200. In months when your monthly income (expressed as an annual amount) is below the lower income cut-off, your monthly payment will be $0.00. This is meant to protect students who have a hard time finding a well-paying job, lose their job at any point, or are working part-time.

This is meant to protect students who have a hard time finding a well-paying job, lose their job at any point, or are working part-time.


+ Upper Income Cut-Off

BFF's ISA comes with an upper income cut-off of $88,500. Whenever you're making above $88,500 a year, your income-determined payments won’t continue increasing. When we calculate your income-determined payment, we will treat your income as $88,500.

Whenever you're making above $88,500 a year, your income-determined payments won’t continue increasing.


+ Payment Relief Pauses

This is up to 12 months of payment pause that can be used during months when your income is above the lower income cut-off but you feel you need relief from payment. It will pause payments for the months you choose, but you won’t get credit toward the Maximum Length (Finish Point #1) or your Maximum Number of Income-Determined Payments (Finish Point #2) of your ISA for those months.

This can be done through BFF’s 3rd-party tech platform.

 

ISA Finish Points

Your obligation ends when you meet any of the three finish points. Whichever you complete first will end your obligation.

 
 

#1: Make the Maximum Number of Payments

If you make 120 months (10 years) of income-determined payments, your obligation is complete regardless of the total amount you've paid or how much time remains in your payment window. The months do not need to be consecutive.

In order for months to qualify for the 120 total, you must be making more than the lower income cut-off.
 

#2: Reach the Maximum Length of the Payment Window

Your ISA has a maximum payment window length of 20 years. If you haven't reached another finish point before the 20-year mark, your obligation is completed at this point regardless of what you paid.

This finish point is most often reached by students who don’t make above the lower income cut-off for many years. By the end, you may have paid more or less than your original funded amount based on your finances. Even if you've paid less than your funded amount, your obligation is complete.
 

#3: Trigger the Early Completion Clause

BFF wants to make sure you would not have been better off taking out a loan with the same funding amount at a 7.5% interest rate instead of your ISA. To make sure of this, BFF is constantly calculating how far along you'd be in repayment if you had taken out a traditional loan with these terms instead of your ISA (and the loan had the same funding amount, a deferment and grace/transition period identical to your ISA, and where the payments on the loan match any payments you make on the ISA). If, after your latest monthly payment, the calculation shows you would have paid off the loan in full but you still have time on your ISA, your obligation is immediately done under the Early Completion clause.

This finish point is most often used by students who do really well financially right out of school. With this finish point, you will always pay more than your funded amount, just like with a typical loan. However, will likely finish your obligation in fewer than 120 payments.
 

*Your percentage of income is not an annual percentage rate (APR). Our income share agreements have an effective APR between 0% and 7.5%. Payments will vary based on your income. For more information please see our Application and Solicitation Disclosure.

 

Frequently Asked Questions

 

+ What are BFF's terms?

For those with need between $1,000 and $35,000

  • You pay 0.25% to 9.5% of your income each month, but only when you're earning above the lower income cut-off.
  • You make monthly payments calculated by multiplying your income percentage by your monthly income until you:
    • Make the Maximum Number of Payments: If you make 120 months (10 years) of income-determined payments, your obligation is complete regardless of the total amount you've paid or how much time remains in your payment window. The months do not need to be consecutive.
    • Reach the Maximum Length of the Payment Window: Your ISA has a maximum payment window length of 20 years. If you haven't reached another finish point before the 20-year mark, your obligation is completed at this point regardless of what you paid.
    • Trigger the Early Completion Clause: BFF wants to make sure you would not have been better off taking out a loan with the same funding amount at a 7.5% interest rate instead of your ISA. To make sure of this, BFF is constantly calculating how far along you'd be in repayment if you had taken out a traditional loan with these terms instead of your ISA (and the loan had the same funding amount, a deferment and grace/transition period identical to your ISA, and where the payments on the loan match any payments you make on the ISA). If, after your latest monthly payment, the calculation shows you would have paid off the loan in full but you still have time on your ISA, your obligation is immediately done under the Early Completion clause.

Note: The minimum funding amount for existing BFF students seeking additional financing is $250. New students must take a minimum of $1,000.

Other Rules

  • Students with earlier versions of BFF ISAs (taken prior to July 2021) must refinance those into BFF's new terms in order to take additional financing from BFF.
  • Students may refinance private student loans into a BFF ISA (more below)
  • Minimum funding amount: $1,000 ($250 for students who are existing BFF Funding recipients)
  • Maximum annual (academic year) funding amount: $12,500
  • Maximum funding amount: $35,000 (generally), $50,000 (for undocumented students and students with special circumstances); subject to affordability guidelines for students with other student debt or ISAs. Note: Active DACA status is required for students in Minnesota and Wisconsin but not for students in Illinois.
    Eligibility Requirements:
  • Be seeking a bachelor's degree
  • Be a freshman, sophomore, junior or senior by the time you would be receiving financing
  • Be in good academic standing, meeting satisfactory academic progress
  • Have no significant adverse credit events (though credit score is not a consideration)
  • Be a U.S. citizen, permanent resident, or undocumented student (active DACA status is required for students in Minnesota and Wisconsin but not for students in Illinois.)
  • Have completed a Free Application Federal Student Aid (FAFSA)
  • Be a participant in one of BFF’s college access and success partners
  • Be at least 17 years old at the time you sign the agreement
  • If you plan to use funding from this ISA to cancel and replace one or more prior ISAs with BFF, you are not required to meet the above criteria.

+ Is there a fee for applying?

There are no fees for applying for a BFF ISA.

+ How much funding am I allowed to receive through this program?

You can take up to $35,000 in total and no more than $12,500 in a single academic year. However, for undocumented students and students with special circumstances we may waive these limits to allow up to $50,000 in total. Note: Active DACA status is required for students in Minnesota and Wisconsin but not for students in Illinois.

Furthermore, you cannot receive more than your cost of attendance at your institution minus any other financial aid awards you have received.

If you have existing student debt, particularly private student loans, this may limit the amount of funding you can receive relative to the amounts above. In this case, you should consider refinancing your private student loan(s) into a BFF ISA.

There is a $1,000 minimum amount required for students who are new to BFF and $250 for existing BFF students

+ Will students be required to go into or be steered toward certain types of employment?

No, there are no requirements stipulating the nature or type of employment or re-enrollment in school that you can choose after you leave the institution.

+ Can I see a copy of BFF's ISA contract?

Yes, you can see a sample contract here:

 

Have Questions?

info@betterfutureforward.org
(651) 401-8401