Purdue Seeks Partner For Student Fund

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The Purdue Research Foundation has issued a request for proposals for a partner to run a proposed income share agreement fund system. The program would allow students to draw funds for college from an investment pool, which they would pay back after graduation with a prearranged percentage of their income. Purdue University President Mitch Daniels discussed the idea before Congress in March, and it generated interest among lawmakers and educators. Legislation to regulate and protect borrowers is currently in the U.S. House of Representatives.

Daniels says ISAs are more common in other countries. He adds that, although the concept is not new, it's been "pre-empted by the explosion of grant and debt programs that we've seen in the last few decades" in the U.S. 

Daniels says there have been other initiatives in the U.S. that "in a sense, resemble" what Purdue is trying to do without much success.

The advantage of the program for students, Purdue says, is that it takes risk away from current funding options, especially loans. Daniels says the market is ready for ISAs and are already organizing to partner with colleges universities throughout the nation.

The foundation expects the program to be set up by the beginning of the 2016 academic year.

Daniels tells Inside INdiana Business, he has been "startled" by the vast amount of interest he received after floating the concept in a Congressional committee hearing earlier in the year. He adds politicians on both sides of the aisle and members of education think tanks agree ISAs could pan out throughout the country.
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