Income-share agreements becoming new alternative to student loans Income-share agreements provide students with financing for college but unlike a student loan don’t have fixed payments; students repay a percentage of their income to the investors for a number of years. This option allows for greater repayment flexibility as payments are entirely based on income and these programs may be more available to low-income students than private student loans. Federal legislation has been introduced to clear up potential legal issues related to these arrangements and Purdue University’s Purdue Research Foundation is already working to set up an income-sharing program for its students.
