Purdue signs firm to examine student income-share deals
- January 22, 2016
- Posted by: admin
- Category: Uncategorized
Purdue Research Foundation announced Monday (Nov. 23) that it has signed a letter of intent with Vemo Education, a Reston, Virginia-based financial services firm, to further study the potential benefits of income share agreement (ISA) funds.
With Purdue Research Foundation’s assistance, Purdue University becomes one of the first universities in the United States to explore an ISA as an option to help students pay for higher education.
“Through our selection process, we were impressed not only by the Vemo team’s expertise in education financing, but also its strong understanding of, and appreciation for, the needs of students,” said Brian Edelman, chief financial officer for the Purdue Research Foundation. “We look forward to the guidance they’ll provide to the foundation as we continue to evaluate the potential of ISAs as a useful tool for Purdue students.”
To ensure multiple perspectives in this endeavor, Purdue Research Foundation also is advised by two non-profits with expertise in this field, 13th Avenue Funding and the Jain Family Institute.
The Purdue Research Foundation program would not replace government subsidized loans, but, if viable, could offer students and their families an alternative to private education loans or PLUS loans, which can entail substantial risks to students if they cannot afford their payments during and after college.
“Vemo’s mission, at its core, is to assist higher education institutions to empower their students,” said Vemo Education CEO Tonio DeSorrento. “An ISA program has the power to do just that, and we are ready to work with Purdue Research Foundation to further explore this as a financing option for Purdue students.”