ELEMENTS OF AN ISA CONTRACT
While an ISA is not a loan, it is a financial obligation. When you sign an ISA contract, you are promising to pay a percentage (share) of your future income for a set number of months.
As part of the application process, you will receive a contract proposal. Review the elements in your contract proposal to understand what your obligation will be.
PERCENTAGE OF INCOME (INCOME SHARE)
Each ISA contract has a unique percentage rate (income share), based on your requested funding amount.
The percentage is the amount of your post-school income that you pay to fulfill your obligation. The percentage is not an interest rate; it’s a slice of your monthly income.
BFF offers 20-year ISA contracts. This means you are obligated to make income-based payments for 20 years—or until you reach the maximum payment cap.
To protect those experiencing financial hardship, each ISA contract has a minimum threshold of $30,000. This means you do not have to make payments when your annual income is below this amount.
Your obligation ends when you’ve reached the total maximum payment cap.
For the Boost ISA, the cap is the amount you borrowed, with interest accruing at 7% APR.
For the Opportunity ISA, the cap is 1.1x the amount you borrowed, with interest accruing at 4.5% APR.