5 Myths and Facts about Income Share Agreements

Income share agreements, or ISAs, provide an alternative method of financing education for students. Despite their growing popularity, there are still many misconceptions about how ISAs work and who can benefit from them. In this blog post, we will dispel some of the common myths and provide the facts about income share agreements.

Myth 1: Income share agreements are like traditional loans

Fact: Income share agreements can be a good option for students who are eligible for traditional loans but want a different way to finance their education. While traditional loans require the borrower to start repaying the loan as soon as they graduate, income share agreements only require repayment when the borrower is earning a certain amount of money. This means that students can focus on finding a job and building their careers without worrying about making monthly loan payments. In addition, income share agreements often have more flexible repayment terms, so borrowers can adjust their payments based on their income.

Myth 2: Income share agreements are only for students who cannot afford to pay for Coyotiv’s software engineering education upfront

Fact: While ISAs can be a good option for the students who cannot afford to pay upfront, they can also be beneficial for those who can afford the tuitions. In fact, many students choose ISAs because they offer a more flexible and affordable way to finance their education. Unlike traditional loans, ISAs do not have fixed monthly payments or interest rates, so students only pay back what they can afford based on their income after they graduate.

Myth 3: Income share agreements are scams and “too good to be true”.

Income share agreements are a legitimate financial aid that is recognized by the law in many countries. They are typically offered by reputable institutions and are subject to regulatory oversight. (We have partnered with Chancen eG) Additionally, they are transparent about their terms and conditions, and students are typically required to sign a contract that outlines the terms of the agreement. However, as with any financial decision, it is important for students to carefully consider the terms of their agreement and do their research before entering into an income share agreement. Students should carefully consider their own financial situation and seek advice from a financial professional before entering into an income share agreement.

Myth 4: You will be in too much debt if you sign an ISA.

Fact: Entering into an income share agreement can be a good option for some students who need financial aid to cover the cost of their education. With this agreement, you will only start making income-based repayments after you begin working in a company or found your own business. Your repayments will be tailored to your individual financial capacity and will only be activated when you are able to afford them. The repayment period is typically 5 years, but you may be able to take a break from repayment if you are unable to work or are on parental leave, for example. The exact repayment rate will depend on whether you have a university degree and whether you start Coyotiv, with rates ranging from 6,53% to 7,33%. The repayment value is capped and reaches a maximum amount after a while. A high income does not mean that the repayments are excessively high.

Myth 5: Income share agreements have hidden fees or costs that students are not aware of.

Not really! One of the benefits of ISAs is that they are often more transparent and straightforward than traditional loans, which can have a variety of hidden fees and costs that are not always clearly disclosed to borrowers. With ISAs, the terms and conditions of the agreement are typically clearly stated in the contract, so students know exactly what they are agreeing to and what their repayment obligations will be. As with any financial decision, however, it is important for students to carefully review the terms of their agreement before entering into an ISA.

How to join Coyotiv’s full-time software engineering course with an ISA

1. Submit your online application to the Coyotiv School of Software engineering.
2. After your interview with Coyotiv, you will be able to apply to Chancen eG for the ISA application.
   • During the Income Share Agreement application process with Chancen eG, applicants have the opportunity to take a quiz and go through an interview to ensure that they fully understand all of the terms and conditions of the agreement, and are confident in their decision to move forward. This is an important step that helps to ensure that both parties have a clear understanding of their obligations and rights under the agreement.
3. If your interview is successful with Chancen eG, you will sign a contract with them.
4. You’re all set to start your coding journey with Coyotiv!

Please note that you may be eligible for an ISA if you have lived in Germany for at least two years (prior to the start date of your chosen program).

Income share agreements can be a useful option for some students who need financial aid to cover the cost of their education. While there are many misconceptions about how ISAs work and who can benefit from them, the facts show that they can be a flexible and affordable way to finance your education. If you are considering an income share agreement to help pay for Coyotiv’s full-stack software engineering course, it is important to carefully consider the terms of the agreement and do your research before making a decision. By understanding the myths and facts about income share agreements, you can make an informed decision that is right for you.