What makes ISAs safer than private loans?

The similarity between an ISA and student loan lies in the fact that you are committing to paying back the lender via an agreement with fixed conditions. Our model in other aspects, bears no relation to a student loan.

The most pronounced difference between an ISA and student loan is that you do not have to pay if you do not earn enough. In other words, if you do not succeed after graduation, then we assume financial responsibility and consider the ISA an unsuccessful investment. This is proof of just how much we trust that only high-achievers in their fields get through our admissions process.

Also, if your career takes an unexpected twist and you suddenly find that you are no longer making enough money, your payments to Turing College will be delayed until you get back on track and there’s no interest to pay. Compare this to a bank loan, where you are locked into making payments irrespective of your actual financial situation, and you’ll understand why ISA’s make sense.

Another difference is the rate of repayment (admittedly, this question only comes into play with iSA’s when you are earning enough). If you make an ISA, the "share" you pay back to the investor directly depends on your income. The percentage varies according to the institution and usually has a "cap" — the maximum amount of return, so you do not have to worry that you’ll pay too much even if you are earning an impressive salary.

The benefits of ISAs:

  • Fostering aspirations. ISAs allow you to choose the study program you really want, whatever the cost. This also promotes a greater diversity among learners and removes obstacles to education due to socioeconomic backgrounds.
  • More financial security. The payments only start when you are financially able. If you are not earning a certain amount of money, you do not have to repay. What is more, if you stop earning enough income, the payments also stop with no interest.

Flexibility. Despite your studying costs, ISAs allow you to meet your financial obligations more flexibly. Your payment depends on your income, and the contract is signed for a fixed period so you can plan your future.

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