An Analysis of the Income Share Agreement Policy Process Using the Advocacy Coalition Framework

• In Event: Financial Aid and Beyond: New Insights on Information, Design, and Outcomes

Abstract

Income share agreements (ISA) are a form of private financial aid that offers money upfront to pay for college in return for a percentage of students’ future earnings. Currently used at some specialized institutions and at one traditional postsecondary institution, the small ISA market is receiving increased attention from policymakers. Using the Advocacy Coalition Framework, this paper examines the evolution of ISA policy. Policy core beliefs in the ISA coalition are that ISAs mitigate risk associated with nonpayment, affect tuition pricing, and help align the cost of higher education with its value. We find that ISA policy is evolving through policy learning, as seen in converging legislative texts, and external shocks, such as possible changes to federal student loans.

Authors

• Audrey Peek, American Institutes for Research

• Jessica Mason, American Institutes for Research

• Matthew E. Soldner, American Institutes for Research