Undergraduate students at Norwich University, the oldest private military college in the United States don’t have to worry about paying their full tuition fee as the university has announced a new income-sharing agreement in which they will pay reduced tuition in exchange for a set percentage of income after graduation over a set period of time.
The initiative by the university is aimed at improving affordability, student retention, and degree completion.
“Norwich University is committed to offering this new way to help pay for college in a way that aligns incentives and helps reduce financial barriers to degree completion,” Norwich University Chief Financial Officer & Treasurer Lauren Wobby said.
“The new Norwich ISA program has the potential to increase educational access and attainment for our students.”
The university has tapped Vemo Education, a Virginia-based education technology company that works with higher education institutions to design, implement, and maintain income-sharing agreement initiatives.
Last year, Vemo powered $23 million of ISAs at a cross-section of colleges and universities across the country, including Purdue University, Lackawanna College in Pennsylvania, and Clarkson University in New York.
The income share agreement will begin in fall 2018.
As financial barriers and loan aversion continue to pose challenges for students, higher education institutions are turning to new strategies in an effort to expand access, increase affordability, and reduce the risk associated with paying for college.
A growing number of colleges and universities have recently implemented Income Sharing Agreements as a new, student-centric model.