Best Online Degree Programs That Offer Income Share Agreements (ISAs) in the USA

Across the United States, the rising cost of college has forced millions of students to look for creative ways to fund their education. According to data from education analysts, the average college graduate now leaves school with over $37,000 in student loan debt, a financial burden that can take decades to repay. For working adults, career changers, and students from low-income backgrounds, this debt often makes higher education feel out of reach.

But a new funding model — the Income Share Agreement (ISA) is changing that story. ISAs allow students to enroll in a degree program without paying tuition upfront, and instead agree to pay a small percentage of their income after graduation once they secure a qualifying job. If they don’t earn above a certain income threshold, they pay nothing.

In this guide, we’ll explore everything you need to know about the best online degree programs that offer Income Share Agreements (ISAs) in the USA including how they work, who they benefit most, the top accredited schools offering them, and how to decide if this flexible, pay-after-you-earn model is right for you.

1. What Are Income Share Agreements (ISAs)?

An Income Share Agreement (ISA) is a financial aid alternative that allows students to attend college or university without taking out traditional student loans. Instead, students agree to pay back a percentage of their future income for a set period of time after graduation.

For example, a student might agree to pay 8% of their income for 5 years once they earn at least $40,000 per year. If they never reach that income threshold, they owe nothing.

Key Features of ISAs

• No upfront tuition: Students can start studying without borrowing loans or paying tuition in advance.

• Income-based repayment: Payments adjust automatically based on your salary.

• Payment cap: Most ISAs have a maximum repayment amount, protecting students from overpaying.

• Forgiveness period: If the payment term expires, any remaining balance is forgiven.

• Risk protection: If you lose your job or earn below a threshold, payments pause or stop entirely.

This model creates a shared incentive between students and schools — the school’s success depends on helping students find good jobs.

2. Why Choose an ISA-Based Online Degree Program

2.1. Flexibility for Working Adults

Many Americans can’t afford to stop working while earning a degree. Online programs with ISAs make education more accessible by eliminating upfront tuition and allowing flexible schedules that fit around work and family responsibilities.

2.2. Lower Financial Risk

Unlike student loans, ISAs don’t accumulate interest. If you don’t find a high-paying job after graduation, your payments stay low — or you may owe nothing. This makes ISAs an attractive alternative for students in unpredictable job markets.

2.3. Focused on Career Outcomes

Colleges offering ISAs are motivated to ensure students graduate with marketable skills and strong career support, since the school’s future revenue depends on student success. These programs often provide career coaching, internships, and job placement assistance.

2.4. Suitable for Mid-Career Professionals

Many online students already have full-time jobs but seek new credentials to advance their careers. ISAs allow professionals to retrain affordably, paying only once their new degree leads to higher earnings.

3. How Income Share Agreements Work Step-by-Step

Step 1: Apply and Get Accepted

You apply to an accredited online program offering ISAs. Once accepted, you review the ISA terms before enrolling.

Step 2: Sign the ISA Agreement

The agreement specifies:

• Income threshold (e.g., $40,000/year minimum before payments begin)

• Percentage of income to share (usually 5–10%)

• Payment duration (typically 3–10 years)

• Payment cap (maximum you’ll ever pay)

Step 3: Complete Your Program Online

While studying, you pay nothing upfront. You can continue working while taking online classes part-time or full-time.

Step 4: Graduate and Begin Earning

Once you land a qualifying job and earn above the income threshold, your ISA repayment begins automatically.

Step 5: Payments End After Term or Cap

When you’ve made the agreed number of payments or reached the maximum cap, your obligation ends — even if you would have paid more under traditional loans.

4. Best Online Degree Programs That Offer ISAs in the USA

While ISAs started with coding bootcamps, many accredited online colleges and universities now offer them for degree-seeking students. Below are some of the best examples of online degree programs with Income Share Agreements that cater to U.S. learners.

4.1. Purdue University Global – Back a Boiler ISA

• Degree Levels: Bachelor’s and Master’s

• Focus Areas: Business Administration, IT, Health Management

• ISA Highlights:

  • Income threshold: $40,000

  • Repayment cap: 2.5x the funded amount

  • Term: Up to 10 years

• Why It Stands Out:
  Purdue was the first major university to pioneer ISAs. The Back a Boiler program allows flexible repayment tied to actual earnings and applies to several online programs.

4.2. Clarkson University Online Programs

• Degree Levels: Graduate Business and Technology Programs

• Focus Areas: MBA, Engineering Management, Data Analytics

• ISA Highlights:

  • No upfront tuition

  • Payment starts after earning $35,000+

  • 6–8% income share over 5 years

• Why It Stands Out:
  Ideal for mid-career professionals who want to advance without taking traditional loans.

4.3. Norwich University Online

• Degree Levels: Bachelor’s and Master’s

• Focus Areas: Business, Leadership, Cybersecurity

• ISA Highlights:

  • Income threshold: $40,000

  • 7% income share for 8 years

• Why It Stands Out:
  Offers flexible scheduling for military and adult learners.

4.4. Coding and Tech-Focused ISAs (with Degree Pathways)

• Schools: BloomTech (Lambda School), University of the People, and Make School

• ISA Highlights:

  • Focused on computer science and tech degrees

  • No payment until job placement

  • Income share typically 10–15% for 3–4 years

• Why It Stands Out:
  These programs help students transition into high-demand tech roles with zero upfront cost.

5. Comparing ISA vs Traditional Student Loans

Summary: ISAs protect students from risk by tying payments to future success, while loans place the financial burden regardless of employment outcomes.

6. Pros and Cons of ISA-Based Online Degree Programs

Pros

1. No upfront tuition payments

2. Flexible for working professionals

3. No interest accumulation

4. Aligned incentives between school and student

5. Automatic pause if income drops below threshold

Cons

1. You may pay more than tuition if income rises quickly

2. Not all programs are accredited

3. Limited availability among universities

4. Complex legal terms in agreements

5. No tax deduction benefits like student loans

7. How to Choose the Right ISA Program

When selecting an ISA-based online degree, evaluate these key factors:

7.1. Accreditation

Always confirm that the university is regionally or nationally accredited to ensure your degree is recognized by employers.

7.2. Career Support

Look for programs with job placement assistance, internships, and career coaching — these show the school’s investment in your success.

7.3. Income Threshold

Compare programs’ minimum income thresholds and repayment percentages. Higher thresholds mean lower risk for students.

7.4. Degree Type and Field

ISAs are most common in business, tech, and data analytics programs that have strong earning potential after graduation.

7.5. Contract Transparency

Read the full ISA terms carefully. Pay attention to payment caps, duration, and what qualifies as “income.”

8. Step-by-Step Guide to Applying for ISA-Based Online Programs

1. Research Eligible Programs: Identify accredited online schools offering ISAs.

2. Check Degree Fit: Choose a degree aligned with your career goals.

3. Review ISA Terms: Understand payment percentages, thresholds, and duration.

4. Submit Application: Apply like a regular online program.

5. Sign ISA Contract: Agree to post-graduation payment terms.

6. Begin Studies: Complete your courses online while maintaining your job.

7. Graduate and Secure Employment: Once your income surpasses the threshold, repayments begin automatically.

9. Who Should Consider ISA Programs

• Working adults needing flexible tuition options

• Low-income students unable to qualify for private loans

• Career changers seeking new credentials

• Tech professionals pursuing high-paying skills

• Military members and parents balancing education with family life

10. Summary Table – ISA-Based Online Degree Options

11. Frequently Asked Questions (FAQs)

1. What is an Income Share Agreement in college?

An Income Share Agreement allows students to study now and pay later as a fixed percentage of their income after graduation.

2. Are ISAs available for online degree programs?

Yes. Many accredited online universities in the USA now offer ISAs for associate, bachelor’s, and master’s programs.

3. Do ISAs cover full tuition?

Some cover full tuition, while others cover partial costs depending on financial need and program type.

4. When do ISA payments begin?

Payments begin only when your income exceeds a set minimum threshold, often between $30,000–$45,000 annually.

5. Are ISA payments interest-free?

Yes, ISAs do not accrue interest — repayment is based solely on income, not borrowed principal.

6. Can I pause ISA payments if I lose my job?

Yes. Payments are automatically paused during periods of unemployment or when income falls below the threshold.

7. Do ISAs affect my credit score?

Generally no, as ISAs are not traditional loans. However, defaulting on signed agreements may affect credit indirectly.

8. Which degrees qualify for ISAs?

Most ISAs are offered for business, tech, and health-related degrees, though availability varies by school.

9. Are ISAs better than student loans?

For many students, yes — ISAs reduce financial risk and don’t accrue interest. However, high earners may end up paying more overall.

10. Can I combine ISAs with scholarships or grants?

Yes. Students can combine ISAs with other aid sources to minimize future payments.

Conclusion: A Smarter, Safer Way to Fund Your Education

For U.S. students balancing affordability, career goals, and flexible learning, Income Share Agreements (ISAs) represent a revolutionary new model for paying for college. Instead of drowning in debt, you can earn your online degree first, then repay only when you succeed.

Whether you’re a working adult seeking to advance, a parent returning to school, or a recent graduate aiming for better opportunities, ISA-based online degree programs offer a fair and future-focused way to learn without financial stress.

Now is the time to invest in your education — on your own terms. Explore accredited online programs that offer ISAs and take your next step toward a secure, debt-free future.