[kevintxwu]

1. In the contract, students agree to something called a Tax Information Authorization (https://www.irs.gov/forms-pubs/about-form-8821-tax-informati...) to allow us to view their tax information to verify payments if necessary. This is fairly standard practice for income share agreements.

2. Same answer as question 1. Also, just to add to this, most students are pretty honest since we're likely to be friends at the end of the program anyways.

3. They normally pay through a share of their monthly income. If they are laid off, and therefore don't make any income that month, they don't pay us anything. However, the payment is then deferred until they can pay again, for a maximum of 2 years, after which everything left is absolved. The goal is to never have anyone have to pay money they don't have.

4. 7% of the total income received. They still pay through a share of their monthly income.

[_m8fo]

1. In the contract, students agree to something called a Tax Information Authorization (https://www.irs.gov/forms-pubs/about-form-8821-tax-informati...) to allow us to view their tax information to verify payments if necessary. This is fairly standard practice for income share agreements.

2. Same answer as question 1. Also, just to add to this, most students are pretty honest since we're likely to be friends at the end of the program anyways.

3. They normally pay through a share of their monthly income. If they are laid off, and therefore don't make any income that month, they don't pay us anything. However, the payment is then deferred until they can pay again, for a maximum of 2 years, after which everything left is absolved. The goal is to never have anyone have to pay money they don't have.

4. 7% of the total income received. They still pay through a share of their monthly income.

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Thanks for the prompt reply! I didn't know such an agreement per (1) existed. In the unlikely event a student refused to pay you, how would you collect? Sue them?

[kevintxwu]

Though an income share agreement is not a loan. It will still affect a student's credit adversely if they default on it.

We're actually transferring the management of the income share agreements to a third party company that's built a software platform for this that directly uses ACH.

So with that combination, hopefully we never have to sue anybody ever about anything! Seems like a terrible experience.

[_m8fo]

> We're actually transferring the management of the income share agreements to a third party company that's built a software platform for this that directly uses ACH.

Care to share the third party?

[kevintxwu]

Here ya go: https://leif.org/

[austenallred]

Vemo is another popular vendor in the income share agreement space

[CameronBanga]

For #4, are you taking 7% of the students total income, or total income received from the job you got them hired to?

[kevintxwu]

If they have side income, we currently write them some custom terms to exclude it so it's only for the actual job.