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We are a 501(c)(3) nonprofit leading a movement in education finance reform. We offer income share agreements (ISAs) to students who participate in select college access and success programs in Minnesota, Wisconsin, and Illinois.
 

 Learn About Our Income Share Agreement

Better Future Forward (BFF) created Student Education Funds because we believe students shouldn’t have to put their future financial health at risk to access the support they need for their education.

Our funds are set up as community or state-specific funding sources that students can use to cover their educational expenses. Once they’ve left school, our fellows have an obligation to pay back into the fund based on their economic situation, in order to sustain the Fund for future students. 

  • BFF believes that all students should have access to quality educational pathways and a fulfilling life.

  • BFF believes student’s payments should adjust if their income changes.

  • BFF believes that students’ shouldn't have to worry about paying if they are unable to or cannot find work.

 
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What is an SEF Agreement?

A Student Education Fund Agreement (SEF Agreement) is a financial commitment that begins after you leave school. After receiving funds to help cover your education, you agree to make a fixed number of income-based monthly payments — but only in months when your income is above a minimum threshold (called the Lower Income Cut-Off).

The total amount you pay is determined by your income after school — not by the amount you received. Some Fellows may repay more than they were funded; others, especially those earning less, may repay less.

Your SEF Agreement is designed to adjust with your circumstances and protect you during periods of low income, offering a flexible alternative to traditional student loans.

To learn more, please see our Application and Solicitation Disclosure.

 

How does the SEF Agreement work?

When you need funding for college, BFF provides the money directly to your school, on your behalf. Currently, our funding amounts range from $1,000 to $50,000. This amount is your funding amount. The percentage of your income is based on your funding amount, with higher amounts requiring a higher income percentage. The percentage of income will be between 0.25% and 9.5%.* The percentage of income won't change over the lifetime of your SEF Agreement. 

Here is how we calculate your income-determined payments:

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Monthly Income x Set % of Income = Monthly Payment

After school, you make payments calculated by multiplying a set percentage by your income each month. These payments are called income-determined payments. The payments are calculated based on the income you make when you are earning above the lower income cut-off. Any time your income changes, your payments will change.

 

The ISA has three different periods.

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In School

While you are enrolled, you do not have to make payments towards your SEF Agreement . Instead, we want you to focus on your education and your path to graduation.

Learn more
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In Transition

When you graduate or withdraw, a 6-month Transition Period will begin. Your payments do not begin until after your Transition Period has concluded. During this time, you're required to make an account with BFF and submit your income. 

This is where you'll track your SEF Agreement, make payments (automatically or manually), and submit your current income.

Learn more
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In Payment

The payment window begins immediately after the Transition Period. Your payment window is the number of months, excluding in-school and transition periods and other periods of payment relief pause, that you are required to make payments linked to your income when your income is above the lower income cut-off. The length of the payment window is set when you sign your SEF Agreement.

Learn more
 

What protections are included in the SEF Agreement?

BFF has designed its SEF Agreement to be protective for students.

+ Lower Income Cut-Off

BFF’s SEF Agreement comes with a lower income cut-off (LICO). In months when your monthly income is below the LICO, your monthly payment will be $0. This protects fellows who have a hard time finding a well-paying job, lose their job at any point, or aren’t working full-time.

The LICO adjusts every year for inflation. In 2025, it was $48,400 for the year, or $4,033 monthly.


+ Upper Income Cut-Off

BFF's SEF Agreement comes with an upper income cut-off (UICO). Whenever you're making above the UICO, your income-determined payments won’t continue increasing. When we calculate your income-determined payment, we will use the UICO as your income rather than your actual income. This protects fellows who do incredibly well from having unreasonably high payments.

The UICO adjusts every year for inflation. In 2025, it was $90,800 for the year, or $7,567 monthly.


+ Payment Relief Pauses

BFF’s SEF Agreement comes with 12 months of Payment Relief Pauses (PRPs) that can be used at your discretion. During a month when you would have a payment due, you can opt to use a PRP instead. You will not have a payment due. This gives fellows extra flexibility for managing their SEF Agreement and finances.

When you use a PRP, you will not get credit towards the three finish points for those months.

 

SEF Finish Points

Your obligation ends when you meet any of the three finish points. Whichever you complete first will end your obligation.

#1: Make the Maximum Number of Payments

If you make 120 months (10 years) of income-determined payments, your obligation is complete regardless of the total amount you've paid or how much time remains in your payment window. The months do not need to be consecutive. In order for months to qualify for the 120 total, you must be making more than the lower income cut-off.
 

#2: Reach the Maximum Length of the Payment Window

Your SEF Agreement has a maximum payment window length of 20 years. If you haven't reached another finish point before the 20-year mark, your obligation is completed at this point, regardless of what you paid. This finish point is most often reached by students who don’t make above the lower income cut-off for many years.
 

#3: Reach Early Completion

BFF wants to make sure you would not have been better off taking out a loan with the same funding amount at a 7.5% interest rate instead of your SEF Agreement, so we run the math.. BFF constantly calculates how far along you'd be in repayment if you had taken out a traditional loan with these terms instead of your SEF Agreement). After each monthly payment, if the calculation shows you would have paid off the traditional loan in full, your obligation is immediately complete under the Early Completion clause. Due to how traditional loans work, this amount changes every day. If you want to complete your SEF Agreement early, you’ll need to make a payment matching your Early Completion Amount.
 

*Your percentage of income is not an annual percentage rate (APR). Our income share agreements have an effective APR between 0% and 7.5%. Payments will vary based on your income. For more information please see our Application and Solicitation Disclosure.

 

What makes this different than a traditional student loan? 

There are some key differences between our SEF Agreement and traditional student loans. 

+ Three ways to complete vs one

In a traditional loan, you must pay back until you’ve paid off the principal and interest. Our SEF Agreement includes this option and adds two more. Your SEF Agreement will come with an income obligation percentage - a set % of your income that determines your monthly payment. When you make a set number of required payments, typically 120 payments, your obligation is complete. Lastly, if you don’t have required payments because your income is too low, your SEF Agreement is complete after a set amount of time, typically 240 months.

+ Payments are always aligned to your income

Traditional loans may have an income-based repayment plan, but you’ll have to seek it out, apply, and continuously recertify your income to use it. Income-based repayment is standard for our SEF Agreements. You don’t need to do anything extra.

+ Extra protections

  • Lower Income Cut-Off (LICO): The Student Education Fund Agreement comes with a lower income cut-off of $48,400. In any month when your monthly income (expressed as an annual amount) is below $48,400, your payment will be $0.00. This protects Fellows who may have difficulty finding a well-paying job, lose their job, or are working part-time.
  • Upper Income Cut-Off (UICO): BFF’s Student Education Fund Agreement also includes an upper income cut-off of $90,800. If your annual income is above $90,800, your income-determined payments will not continue to increase. When we calculate your payment, we will treat your income as capped at $90,800 — even if you earn more.
  • Payment Relief Pauses: You have access to up to 12 months of payment pause that you can use when your income is above the lower income cut-off but you still need temporary relief from making payments. During the months you choose to pause, your payments will stop. However, those months will not count toward either your Maximum Length (Finish Point #1) or your Maximum Number of Income-Determined Payments (Finish Point #2) under your agreement.

Frequently Asked Questions

 

+ What are BFF's terms?

For those with need between $1,000 and $35,000

  • You pay 0.25% to 8.0% of your income each month, but only when you're earning above the lower income cut-off.
  • You make monthly payments calculated by multiplying your income percentage by your monthly income until you:
    • Make the Maximum Number of Payments: If you make 120 months (10 years) of income-determined payments, your obligation is complete regardless of the total amount you've paid or how much time remains in your payment window. The months do not need to be consecutive.
    • Reach the Maximum Length of the Payment Window: Your SEF Agreement has a maximum payment window length of 20 years. If you haven't reached another finish point before the 20-year mark, your obligation is completed at this point regardless of what you paid.
    • Trigger the Early Completion Clause: BFF wants to make sure you would not have been better off taking out a loan with the same funding amount at a 7.5% interest rate instead of your SEF Agreement. To make sure of this, BFF is constantly calculating how far along you'd be in repayment if you had taken out a traditional loan with these terms instead of your SEF Agreement (and the loan had the same funding amount, a deferment and grace/transition period identical to your SEF Agreement, and where the payments on the loan match any payments you make on the SEF Afreement). If, after your latest monthly payment, the calculation shows you would have paid off the loan in full but you still have time on your SEF Agreement, your obligation is immediately done under the Early Completion clause.

Note: The minimum funding amount for existing BFF students seeking additional financing is $250. New students must take a minimum of $1,000.

Other Rules

  • Students may refinance private student loans into a BFF SEF Agreement (more below)
  • Minimum funding amount: $1,000 ($250 for students who are existing BFF Funding recipients)
  • Maximum annual (academic year) funding amount: $12,500
  • Maximum funding amount: $35,000 (generally), $50,000 (students with special circumstances); subject to affordability guidelines for students with other student debt or ISAs.

+ Is there a fee for applying?

There are no fees for applying for a BFF ISA.

+ How much funding am I allowed to receive through this program?

You can take up to $35,000 in total and no more than $12,500 in a single academic year. However, for students with special circumstances, we may waive these limits to allow higher amounts.

Furthermore, you cannot receive more than your cost of attendance at your institution minus any other financial aid awards you have received.

If you have existing student debt, particularly private student loans, this may limit the amount of funding you can receive relative to the amounts above. In this case, you should consider refinancing your private student loan(s) into a BFF SEF Agreement.

There is a $1,000 minimum amount required for students who are new to BFF and $250 for existing BFF students.

+ Will students be required to go into or be steered toward certain types of employment?

No, there are no requirements stipulating the nature or type of employment or re-enrollment in school that you can choose after you leave the institution.

+ Can I see a copy of BFF's ISA contract?

Yes, you can see a sample contract here:

 

Have Questions?

info@betterfutureforward.org
(651) 401-8401