Income Share Agreements (ISAs)

ISAs are an innovative, fair and ethical education financing tool that mimics some of the characteristics of a Stokvel. It allows students to receive financing without the danger of taking on a traditional loan and supports the education of future generations.

The Income Share Agreement

A new way to finance education for young people

WaFunda is proud to partner with Chancen International to deliver this innovative education financing tool to the South African market. Chancen International is an NGO with over 25 years of experience in Germany managing €25 Million in ISA’s to young people. Chancen International started delivering their ISA’s in Rwanda in 2018 and have financed over 1300 students. Chancen ISA students join a vibrant, nurturing and engaged community as soon as they sign their Income Share Agreements.

Our joint mission is to remove financial barriers regardless of one’s financial background.

How the Income Share Agreement works

Fair and ethical Financing

The ISA provides young people with ethical financing, reducing the risks associated with traditional loans. The ISA covers the cost of a student’s studies and the student in turn commits to paying a percentage of their future income back towards the ISA. Repayments are determined by field of study and students’ career paths, with risk being shared between the student, WaFunda, Education Providers and the Future of Work Fund.

Repayments are income based

Students repay a fixed percentage of their salary based on an income threshold in alignment with their chosen career path. Students will never pay more than 20% of their income and ISA’s have a maximum repayment term.

Financing without the burden

No collateral or surety is needed to secure an ISA. Financing terms are fixed, fair and ethical to ensure that young people can meet their own needs while repaying. Students do not repay if they are not earning. The Future of Work Fund has earmarked R48 million for ISAs in South Africa through 2024.

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