Pennsylvania's Private College Association Recognizes Income Share Agreements as Innovative Solution for Paying for College

HARRISBURG, Pa., June 19, 2018 /PRNewswire/ -- The Association of Independent Colleges and Universities of Pennsylvania (AICUP) today announced that it has approved the education finance pioneer Vemo Education (Vemo) as a member-preferred program for Pennsylvania colleges and universities looking to implement income share agreements, a new approach to student finance.

"Affordability has always been a cornerstone of our efforts to help students succeed in college and beyond," said Mark Volk, president of Lackawanna College, an AICUP member that launched an income share agreement program in late 2017.  "Our new income share agreement program is transforming the way we help students from all backgrounds finance their education, and we are excited to see AICUP recognizing the potential of ISAs."

With federal student loan debt surpassing $1.5 trillion, college and university leaders are in search of new strategies to make college more affordable and relieve the burden of debt. Income share agreements are a consumer-friendly alternative to student loans that align the interests of students and institutions. Under the terms of an ISA, students pay less tuition up-front in exchange for a defined percentage of their income after graduation for a set period of time. Payments adjust based on income and only begin when an individual's income is above a minimum threshold, ensuring that graduates are not burdened with payment during times of financial hardship.

"We serve a diverse group of 91 colleges and universities across Pennsylvania -- but despite their differences, our members are all in search of innovative solutions to help students afford  their education," said Tim Alexander, Vice President of Finance and Administration of AICUP. "We expect that as they learn about this new preferred program, our members will find income share agreements to be a new tool to reduce barriers to enrollment and retention. And colleges that offer income share agreements have a greater stake in their students' success after graduation."

Vemo partners with colleges, universities, and education providers across the country to help them design, implement, and service custom income share agreement programs. Vemo's technology powers Purdue University's groundbreaking Back A Boiler ISA program, which has served hundreds of students since its launch in 2016, as well as AICUP member institutions Lackawanna College and Messiah College.  

"A college degree remains a prerequisite for socioeconomic mobility in the United States -- but far too often, students feel locked out of opportunity due to the high cost of tuition and the financial strain of high-interest loans," said Tonio DeSorrento, CEO of Vemo Education. "AICUP's recognition will help to showcase the impact of income share agreements on increasing access and affordability for institutions across Pennsylvania."

About AICUP
The Association of Independent Colleges and Universities of Pennsylvania (AICUP), the only statewide organization that serves exclusively the interests of private higher education within the Commonwealth, exists to complement and support the work of campus leaders. AICUP's mission is to educate policymakers, media representatives, and civic and corporate leaders about the benefits, value and quality education available at Pennsylvania's independent colleges and universities. This educational effort is intended to secure government and philanthropic support for students and institutions in the independent sector. AICUP further works to create partnerships among its member institutions to enhance their programs and reduce their costs. Learn more at www.aicup.org.

About Vemo Education
Vemo Education is a mission-driven company working to expand opportunity for all Americans. By offering a thoughtful, consumer friendly alternative to high cost, burdensome student loans, Vemo Education is changing the way we pay for higher education. By partnering with colleges and universities to design and implement income share agreements, we're leveling the playing field so that institutions have skin in the game and are aligned with producing real value and outcomes for their students. Our platform offers a turnkey solution for income share agreements. Learn more at www.vemo.com.

SOURCE Vemo Education

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