Students planning to enroll in the University of California San Diego Extension (UCSDx) won’t have to worry about paying upfront tuition as the university has announced a new income-sharing agreement system. Instead, students will pay a percentage of their income after graduation for a set period of time.
The university collaborated with the San Diego Workforce Partnership to develop the Workforce Income Share Agreement Fund. The program aims to train unemployed and underemployed individuals across San Diego County to address the area’s current workforce shortage.
Under the program, students will have access to the university’s certificate courses without paying any tuition upfront. After they pass out of the courses and secure a job with an annual salary of at least $40,000, the students will pay a set percentage of their income over a set period of time.
“It’s time for employers, education providers, and individuals to start preparing for a world where lifelong learning is an economic imperative,” Josh Shapiro of UC San Diego Extension, said.
“Our goal is to ensure that every student and worker in San Diego can access a world-class education coupled with the support and guidance that will help them succeed in the workforce.”
Students will also be given access to a “wraparound support system” to help them excel, both in the classroom and in the job market, according to a statement from the school.
The university has partnered with Vemo Education to implement and sustain the income share agreement initiative. The first year’s initial pilot is also supported by grants from Google.org, Strada Education Network, and The James Irvine Foundation.
“Our goal is to expand access to education at a time when the shelf life of skills is shrinking, and ‘one-and-done’ learning is no longer enough to equip individuals with skills that will last throughout their careers,” said Tonio DeSorrento of Vemo Education.
The first program cohort will launch in July and will host 100 students. The program aims to grow to 200 students annually beginning in 2020.
What Student Borrowers Should Know About Income Share Agreements
