Student Payment Examples
A student needs $10,000 to complete her junior year of school, so she takes an Opportunity ISA. Her income share percentage is 2.70%. Her payments depend on her after-school earnings. For example:
If she earns...
$30,000 She pays nothing and finishes her BFF ISA in 240 months, reaching the end of her payment window (equivalent to 0.00% APR).
$40,000 She pays $10,800 and completes her ISA by reaching the maximum number of payments in 120 months, equivalent to a 1.199% APR.
$50,000 She pays $13,500 and completes her ISA by reaching the maximum number of payments in 120 months, equivalent to a 4.740% APR.
$60,000 She pays $16,200 and completes her ISA by reaching the maximum number of payments in 120 months, equivalent to a 7.331% APR.
$70,000 She pays $15,419.70 and completes her ISA by triggering the Early Completion Clause in 99 months, equivalent to a 7.160% APR.
$80,000 She pays $15,041.17 and completes her ISA by triggering the Early Completion Clause 91 months, equivalent to a 7.324% APR.
Under other options...
  • She pays $13,103.39 with a federal unsubsidized Stafford loan.
  • Her parents pay $13,978.67 with immediate payback of a Parent PLUS loan or  $15,953.86 if payments are deferred while the student is in school.
  • She pays $17,420.30 with a private student loan at an 8.3% annualized rate
A student needs $1,200 to complete his senior year of school, so he takes an Opportunity ISA. His income share percentage is 0.33%. His payments depend on his after-school earnings. For example:
If he earns...
$30,000 He pays nothing and finishes his BFF ISA in 240 months, reaching the end of his payment window (equivalent to 0.00% APR).
$40,000 He pays $1,320 and completes his ISA by reaching the maximum number of payments in 120 months, equivalent to a 1.528% APR.
$50,000 She pays $1,650 and completes his ISA by reaching the maximum number of payments in 120 months, equivalent to a 5.205% APR.
$60,000 She pays $1,794.93 and completes her ISA by triggering the Early Completion Clause in 110 months, equivalent to a 7.361% APR.
$70,000 She pays $1,690.26 and completes her ISA by triggering the Early Completion Clause in 89 months, equivalent to a 7.357% APR.
$80,000 She pays $1,652.35 and completes her ISA by triggering the Early Completion Clause 81 months, equivalent to a 7.138% APR.
Under other options...
  • He pays $1,522.85 with a federal unsubsidized Stafford loan.
  • His parents pay $1,677.44 with immediate payback of a Parent PLUS loan or  $1,914.46 if payments are deferred while the student is in school.
  • He pays $2,090.44 with a private student loan at an 8.3% annualized rate
This page is for informational purposes only and is not an offer for an ISA.
Calculation Notes:

For the $10,000 Junior: Assumes a 2.7% percent income share, no annual income growth or inflation, and an income threshold of $40,000. Assumes the asking amount was disbursed on 8/1/2021 and the student will graduate 5/1/2023. For loan comparisons, assumes a 10-year term length in all cases, which is the default term length for federal loans and the average term length for a Sallie Mae private student loan. Parent PLUS calculations are shown both for the case where the parent chooses to make payments immediately (the default under Parent PLUS) and the case where payments are deferred while the student is in school. Federal loans offer other repayment options, including income-driven repayment options, that can result in higher or lower payments depending on your circumstances. Private Student Loan rates are based on the average fixed interest rates under the Sallie Mae Bank Private Education Smart Option Student Loan, as of August 3, 2020. The interest rate on a private education loan will vary based on your credit score.

For the $1,200 Senior: Assumes a 0.33% percent income share, no annual income growth, and an income threshold of $40,000. Assumes the asking amount was disbursed on 8/1/2021 and the student will graduate 5/1/2022. For loan comparisons, assumes a 10-year term length in all cases, which is the default term length for federal loans and the average term length for a Sallie Mae private student loan. Parent PLUS calculations are shown both for the case where the parent chooses to make payments immediately (the default under Parent PLUS) and the case where payments are deferred while the student is in school. Federal loans offer other repayment options, including income-driven repayment options, that can result in higher or lower payments depending on your circumstances. Private Student Loan rates are based on the average fixed interest rates under the Sallie Mae Bank Private Education Smart Option Student Loan, as of August 3, 2020. The interest rate on a private education loan will vary based on your credit score.