Lackawanna College Launches Innovative Student Financing Solution
Income share agreements reduce up-front cost for students; align cost of college with student outcomes
SCRANTON, Pa., Nov. 30, 2017 /PRNewswire/ -- Lackawanna College today announced that students will now be able to fund part of their college costs with income share agreements (ISAs), an innovative solution that allows students to pay for college with a set percentage of their income after graduation. Income share agreements create a more affordable option for students by reducing up-front expenses and aligning the cost of college with student outcomes.
"Affordability has always been a hallmark of Lackawanna College, and our institution has a long history of innovative thinking to provide students with high-quality educational opportunities at low costs," said Lackawanna College President Mark Volk. "Income share agreements provide an opportunity to align our interests with those of our students, which fits perfectly with our mission to ease the burden of college costs."
With federal student loan debt at $1.4 trillion and climbing, college and university leaders are increasingly focused on identifying alternative college funding models that reduce risk and improve affordability for students and graduates. By adjusting payments based on income, ISAs enable risk-sharing between students and institutions and reduce the amount of payment for students who make less than expected after graduating.
Lackawanna College, founded in 1894, is a private, accredited, nonprofit institution focused on providing affordable pathways to careers in high-demand industries, such as allied health, business, criminal justice, and more. In a visit to the college in 2013, President Barack Obama highlighted Lackawanna as a standard-bearer for affordability and access. This semester, the institution expanded its offerings to include its first three bachelor's degree programs, with further expansion planned for the next academic year.
To develop its ISA program, Lackawanna College partnered with Vemo Education, an education technology company that helps colleges and universities develop, launch, and implement income share agreements and other income-based approaches to student finance. This year, Vemo has powered $23 million of income share agreements at postsecondary and vocational institutions.
"Income share agreements are based on the premise that the cost of college should be based on a student's potential, not her parents' tax returns," said Tonio DeSorrento, Co-Founder and CEO of Vemo Education. "From affordable tuition to innovative academic programs linked to in-demand jobs, Lackawanna College is a standout institution. We're proud to help further the institution's longstanding commitment to improve the lives of its students and the communities in which they live."
About Lackawanna College
Lackawanna College is a private, accredited college serving the people of Northeastern Pennsylvania. With its main campus situated in downtown Scranton, Lackawanna's expanding footprint also includes satellite centers in Hawley, Hazleton, New Milford, Sunbury, and Towanda.
About Vemo Education
Vemo Education's mission is to help higher education institutions empower their students by developing customized, value-oriented student financing programs. Providing a full-service approach to its partners, Vemo has invested in the infrastructure required to design, price, originate, disburse and service income-based payment products. Vemo's management team has extensive experience in education finance and the financial aid sector. Learn more at www.vemo.com.
SOURCE Vemo Education; Lackawanna College
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