Congressional Democrats Warn Department of Ed About Income Share Agreements

Inside Higher Education is reporting that three congressional Democrats (including 2020 presidential candidate Senator Elizabeth Warren [D-MA]) sent a letter yesterday to Secretary of Education Betsy DeVos expressing concern about the Department of Education's intention to implement experimental income-share agreements (ISAs). ISAs "offer students financial support up front and in exchange require them to repay a portion of their income for a set number of years." Andrew Kreighbaum of Inside Higher Education writes that "the Democrats expressed skepticism of income-share plans more broadly, arguing that they share the same potential pitfalls as private student loans, 'with the added danger of deceptive rhetoric and marketing that obscure their true nature.'”