plus/minus epsilon

In my last post, I discussed Income Share Agreements (ISAs), including their many downsides and how they’re prone to being more expensive than traditional loans. In this post, I wanted to discuss something that I think is a much safer solution to the same problem: Income-Based Repayments (IBR) for a loan.

Income Share Agreements, or ISAs, are contracts where a borrower receives something of value, and in exchange they give the lender a percentage of their income every year for a fixed number of years. A lot of people have been proposing them as an alternative to traditional student loans.