For Daniel Michael, the realization that his life was about to seriously change hit almost as soon as Covid-19 entered the United States. <\/p>\n\n\n\n
\u201cI\u2019m a musician. Or at least I was before Covid,\u201d he told us. <\/p>\n\n\n\n
The pandemic was spreading like wildfire, and restaurants, bars, clubs, and concert halls\u2014which were all once filled with music\u2014had closed. Crowds, the lifeline of the live music industry, were forced to disperse. <\/p>\n\n\n\n
\u201cI was in a band…We actually got signed by a local music label, but that was a month before Covid hit. So, when it spread, the deal fell through. The music scene crashed once Covid [cases] started rising. And as much as I like music, I knew the music industry is only safe until it\u2019s not.\u201d<\/p>\n\n\n\n
The live music industry became one of the first casualties of the pandemic. With physical distancing as the people\u2019s first defense against the airborne virus, live music will likely be one of the last industries to recover. Fortunately for Daniel, he found a way to get back up. Determined to secure his future, Daniel traded his pen for a keyboard, and instead of writing lyrics, he started writing code.<\/p>\n\n\n\n
For Daniel, the quiet music halls served as a sobering wake-up call to change careers. \u201cI knew I had to be in an industry that I don\u2019t just like but can also rely on.\u201d Daniel found the stability he was looking for in the tech industry, and it isn\u2019t surprising why.<\/p>\n\n\n\n
In the year since the pandemic devastated economies, the tech industry suffered around 137,000 job losses<\/a>. Although that may seem like a lot, it\u2019s actually small when compared to the 2.1 million jobs lost for professional and business services and the 1 million jobs lost in the state and local government. <\/p>\n\n\n\n The wide berth between tech and other industries\u2019 job losses reflects tech\u2019s resilience, even in the face of a pandemic. And while that might be enough to convince some people to switch to tech, Daniel had a deeper reason behind the move. <\/p>\n\n\n\n \u201cI always loved computers. I built my first computer when I was 14. I know that\u2019s more of physical [hardware] building but I enjoyed doing it. I thought, \u2018Okay, why not build software this time?\u2019\u201d And so he did. But just as his venture into music was unconventional, so was his journey to coding. Having once pursued a music degree at a community college, Daniel, once more, took the road less traveled. <\/p>\n\n\n\n \u201cI joined General Assembly and took the Software Engineering Immersive online,\u201d Daniel said. \u201cI liked the school\u2019s Dash program, which was like the precourse where they introduce you to coding. The material was very straightforward. It wasn\u2019t too much but it wasn\u2019t too little either.\u201d<\/p>\n\n\n\n General Assembly is one of the oldest and largest skills-based training providers in the United States. A decade in existence, the school boasts a range of training programs for anyone looking to break into tech. Backing up its intensive coding program is an affordable way to finance one\u2019s education: the income share agreement (ISA)<\/a> loan. <\/p>\n\n\n\n \u201cThe school introduced me to the ISA,\u201d Daniel said. \u201cAnd at that point in my life, I felt that I just couldn\u2019t pass on that.\u201d <\/p>\n\n\n\n To understand Daniel\u2019s story, let\u2019s back up a minute and go over what an ISA is. Put simply, an income share agreement is a type of loan between a school and a student where, instead of paying tuition out of pocket, the student pays with a promise. <\/p>\n\n\n\n That promise usually comes with several conditions that vary by school and program, but the gist of it is this: The school agrees to finance your education throughout your chosen program. In exchange, you promise that once you\u2019re earning above a certain gross monthly income, you\u2019ll pay a set percentage of your earnings to settle the debt of your tuition. Put another way, the ISA follows a \u2018learn now, pay later\u2019 policy. <\/p>\n\n\n\n To the casual reader, learning about the ISA loan, or any other unfamiliar financial product, may sound intimidating. But it shouldn\u2019t be. To start, let\u2019s talk about a few features of income share agreements.<\/p>\n\n\n\n ISAs typically follow this formula, but terms and conditions vary by school. So, how does General Assembly\u2019s ISA program set students up for success? <\/p>\n\n\n\n Daniel enrolled in General Assembly\u2019s Software Engineering Immersive Online<\/a> in October of 2020, just as coronavirus cases began surging again in the US. Unable to pay for his education out of pocket, he was presented with the ISA, one of General Assembly\u2019s financing options offered under the Catalyst Program<\/a>.\u00a0<\/p>\n\n\n\n The program was General Assembly\u2019s response to students who said they lacked resources and viable financing options. Despite its promise, Daniel initially reacted to the ISA option with skepticism\u2014a welcome, if not an encouraged, sentiment in the face of something that could potentially make or break his future.<\/p>\n\n\n\n \u201cI was so aware of the fact that I was taking a risk by choosing a field where I have zero experience. When I went to college for music, it didn\u2019t feel as risky because I\u2019ve been singing all my life. But the tech industry was new to me. I knew anything can happen,\u201d Daniel admitted.<\/p>\n\n\n\n \u201cI was afraid that I would not be successful at my bootcamp program. I was afraid that I would leave midway. I thought, \u2018Okay, what if I do leave? What happens then?\u2019 I was never going to give up anyway, but I always had that \u2018what if\u2019 in my head.\u201d<\/p>\n\n\n\n \u201cI guess another concern was how lenient the ISA would be with deferment. Like, if I don\u2019t get a job, what\u2019s going to happen then? Luckily, the school was actually good with clearing that up for me.\u201d <\/p>\n\n\n\n Let\u2019s clear it up for you. <\/p>\n\n\n\n Echoing Daniel, the ISA was \u201csimple and straightforward.\u201d General Assembly\u2019s ISA Catalyst Program can be summarized in five points.<\/p>\n\n\n\n Note that if your payment window closes before you fulfill either of the obligations above, your ISA expires<\/em>, as long as you\u2019ve remained in compliance with your contract.<\/p>\n\n\n\n \u201cWhen I started at the bootcamp, I didn\u2019t know anything. Everything was so difficult. I was just at the bottom. I had a lot of thoughts those times. \u2018Is this for me? Am I really cut out for this? Should I just give up?\u2019\u201d Daniel said. \u201cBut I just held on. Come the seventh week, I was no longer drowning; I was flying. I just understood everything.\u201d <\/p>\n\n\n\n By the end of the program, Daniel had created a project that even ranked among Career Karma\u2019s Best Projects of the Week<\/a>. Perhaps inspired by the health crisis that spurred Daniel to break into tech, the \u201cRXGuide\u201d<\/a> is a front-end React application designed to help users organize their medication. <\/p>\n\n\n\n Using the RXGuide, users can choose a specific medication from a list provided and input the time that the specific prescription drug was taken. The app especially helps individuals who have trouble adhering to a schedule to keep track of their prescription drug intake. <\/p>\n\n\n\nIncome Share Agreement: Terms, Conditions, and All that Jazz <\/h2>\n\n\n\n
\n
An income share agreement loan, unlike a traditional student loan, does not take decades to fulfill. A 2019 study conducted by insurance company New York Life revealed that traditional student loans take an average of 18.5 years to complete<\/a>.\u00a0
ISAs generally take half of that to complete, with others, such as General Assembly\u2019s, taking less. ISAs usually have a payment window, too. If participants don\u2019t fulfill their ISA before the payment window closes, their agreement expires, as long as they\u2019ve complied with the terms of their contract.
<\/li>\n\n\n\n
An income share agreement loan, unlike a traditional student loan, does not put all of the financial risks in the student\u2019s basket. Instead, it holds the school accountable for the education it provides. Why is this distinction important?\u00a0
The question of whether the cost of education should correspond with job outcomes has made the rounds for several reasons. The most pressing one is this: schools don\u2019t shoulder any risks associated with traditional student loans, even if the quality of education they provide fails to prepare students for gainful employment. This becomes a problem especially among student borrowers from low-quality schools, who are essentially set up for failure and crippling debt.
<\/li>\n\n\n\n
For students at trade schools and skills-based training providers, federal student loans may be unavailable. To complicate matters, even private loans may be limited. That\u2019s especially true for students with imperfect credit histories or non-U.S. resident statuses.\u00a0
As a result, students who draw away from the traditional four-year learning path may end up facing more difficulties in pursuing their education. A case in point: in 2018, General Assembly published a report<\/a> highlighting the impact of the limited access bootcamp students have to education-financing tools.
\u201cUnlike traditional graduate school programs, General Assembly students are not eligible for loan deferment as they work to build new, career-relevant skills,\u201d the report said. \u201cAs a result, students with limited credit history, a handful of penalties due to late payments, or other debt obligations are unable to secure financing\u2014perpetuating a cycle that keeps them underskilled and underemployed.\u201d
<\/li>\n<\/ol>\n\n\n\nIncome Share Agreements in Play<\/h2>\n\n\n\n
Focus on Class, Not Costs<\/strong><\/h3>\n\n\n\n
\n
<\/li>\n\n\n\n
<\/li>\n\n\n\n
<\/li>\n\n\n\n
<\/li>\n\n\n\n\n
Facing the Music: Daniel Becomes a Software Engineer<\/h2>\n\n\n\n