Income Share Agreements
The PLU Persistence Program is an innovative new award initially created to help students meet their financial gap, exacerbated by the termination of the Federal Perkins Loan program by the federal government after the 2017-18 academic year. Now that all our Perkins Loan borrowers are no longer enrolled at PLU, the fund can serve another current need for a broader cohort of students; filling some of the financial gap to help first years, sophomores, juniors, and seniors stay in school and graduate from PLU. Here’s how these income share agreement (ISA) programs work:
PLU will finance between $2,500 and $5,000 per year of eligible students’ financial need. In exchange, students agree to pay PLU a certain percentage of their annual income in monthly payments, beginning six months after leaving PLU, AND only if earning $25,000 or more per year. The income share percentage is dependent on the total amount financed during a student’s time at PLU. Students will never pay more than the amount financed by the program, and the agreement is satisfied (ended) when the maximum number of payments have been paid or the financed amount has been paid in full, whichever comes earlier.
The PLU Persistence Program is offered as an “Estimated” award. To accept the award, go to your 2021-22 financial aid award in Banner Self Service and accept your offer. Your acceptance will prompt SFS to upload your award to the VEMO website, who will then invite you to create an account and provide a customer profile and complete an agreement form in their website. Once completed, that’s it. Your funds will disburse onto your account on the next scheduled disbursement date like any other financial aid fund. For more information about this ISA, click here.