Lumni Income Share Agreement

Lumni Income Share Agreement: A Guide to Financing Your Education

Education can be expensive, and many students are left with significant debts to repay after graduation. To address this issue, many innovative models of financing have emerged, including the Lumni Income Share Agreement (ISA). This financing model allows students to pay for their education in a more flexible way, based on their income after graduation.

What is a Lumni ISA?

A Lumni ISA is a financial agreement between the student and Lumni, a social impact organization that provides funding for education. In exchange for funding, the student agrees to pay a percentage of their income for a fixed period of time after graduation, with the amount based on their earnings. The percentage paid is predetermined, based on factors such as the cost of education and the potential earnings of the student`s chosen profession.

How does it work?

To apply for a Lumni ISA, students must complete an application and provide information such as their educational background, career goals, and expected income after graduation. If approved, Lumni will provide a lump sum payment to cover the cost of tuition and other education-related expenses.

After graduation and once the student starts to earn an income, they will begin paying back the ISA. Payments are calculated based on the agreed-upon percentage of income, which is typically between 5% and 15%. The amount paid each month is adjusted based on the student`s income, so if they earn less than expected, their payments will be lower.

The duration of the repayment period varies depending on the terms of the agreement but usually lasts between five and ten years. Unlike traditional student loans, there is no fixed repayment term or interest rate.

What are the advantages of a Lumni ISA?

One of the main advantages of a Lumni ISA is that it offers students more flexibility than traditional student loans. For those who may not have access to other forms of credit, this financing option offers an alternative way to finance their education. It can also help reduce the financial stress of student debt by allowing students to pay back their loans based on their income after graduation.

Additionally, Lumni provides career placement services and support to help students find jobs that align with their education and career goals. This support can help students increase their earning potential and pay back their ISA more quickly.

Are there any disadvantages?

While a Lumni ISA may be an attractive financing option for some students, it may not be the best choice for everyone. For those pursuing high-income careers, the percentage of income paid back may be higher than the interest accrued on a traditional student loan. Additionally, since the repayment term is based on income, it could extend over a longer period than traditional student loans, resulting in higher overall repayment costs.

It is important for students to carefully consider all of their options and calculate the total cost of each financing option before committing to a Lumni ISA.


The Lumni Income Share Agreement provides an innovative financing solution for students looking to pay for their education in a more flexible and sustainable way. With a Lumni ISA, students can finance their education without facing the burden of high-interest loans or inflexible repayment terms. However, it is important to carefully consider all financing options before committing to a Lumni ISA. As with any financial agreement, students should always read and understand the terms of the agreement before signing on the dotted line.