Mitch Daniels Income Share Agreements

Still, Neuwirth said she doesn`t disapprove of Purdue`s chance to enjoy its success because the revenue-participation agreement allowed her to stay on campus and graduate. She said, „It`s a good thing that I`m going to put some money on Purdue.“ Changes like the new Indiana law and the proposed Kids to College Act open the door for future ISA lenders to offer operating conditions, and the actions of current income-participating lenders give us reason to believe they will go through it. ISAs are already misleading students in their marketing. For example, they claim that they do not bear interest, but borrowers may very well repay much more than they borrow. It is indeed considered an interest. Purdue President Mitch Daniels agrees that colleges haven`t placed enough emphasis on helping their graduates succeed and sees revenue-participation agreements as a way to push schools in that direction.

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