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.


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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.

 
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Payment Period

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.

 
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MINIMUM THRESHOLD

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.

 
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TOTAL CAPS

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.