The Consumer Financial Protection Bureau (CFPB) took action against a nonprofit company that offers income share agreements (ISAs) to help students cover the high costs of obtaining a college degree, alleging that the lender has misinterpreted the nature of those financial products. ISAs, which have gained popularity among college students as an alternative to traditional student loans, provide borrowers with education funding and, in exchange, require them to pay a percentage of their post-graduation income for a period of time. While terms may vary from provider to provider, ISAs can be designed in a way that borrowers have to pay back only when their earnings reach certain thresholds, and with a capped payment amounts. In a consent order announced Tuesday, the CFPB said it has settled with Better Future Forward, a nonprofit providing education finance plans. The Virginia-based company allegedly misrepresented its product by saying that ISAs are not loans …
RSS Feed | The Epoch Times