Everyone’s path after graduation looks different. But there are always two paths to ISA fulfillment: You’ll either make the maximum number of monthly payments or hit the payment cap. If your payment window closes before you fulfill one of those obligations, your ISA will automatically expire, provided that you made payments as required when your earnings met the minimum income threshold. To get an idea of how your ISA experience might unfold, take a look at Maya’s example below.

01.

August 2023: Maya signs her last ISA.

In her senior year, Maya carefully reads and signs her final ISA contract for $4,000. This contract brings her total funding amount to $16,000 over four years, which result in the following cumulative terms:

  • ISA Amount: $16,000
  • Income Share: 6.25%
  • Max Monthly Payments: 60
  • Payment Cap: 1x ($16,000)
  • Payment Window: 96 months
  • Min Income Threshold: $2,500/month ($30,000/year)

May 2024: Maya graduates from Rockhurst.

With the help of ISA funding, Maya graduates at the end of the school year.

02.

03.

May 2024: Maya enters her grace period.

Maya’s 6-month grace period begins shortly after graduation During her grace period, she’ll log into her ISA account and update her employment and income information. Maya’s employment and income could follow any number of trajectories, but no matter what, her ISA will be fulfilled when she reaches the first of these endpoints:

  • 60 payments (maximum number of monthly payments), or
  • $16,000 total payments (payment cap)

To see Maya’s variable payment experiences, toggle between endpoints in the table below.

 

Maximum Number Monthly Payments

ISAs define a maximum number of monthly income-based payments. Once you make that number of payments, your ISA ends—even if you’ve paid less than the initial funding amount.

04.

May 2024

Maya is hired for a job with a salary of $30,000, or $2,500/month. She submits income documentation for ISA servicing during her grace period.

05.

January 2025

Maya’s first monthly payment is due. (Monthly payment = gross monthly income x income share)

06.

February 2025–December 2029

Maya continues making monthly payments and submitting income documentation. Her income may fluctuate with raises or job changes, but her income share will remain 6.25%.

07.

December 2029

Maya makes the maximum number of monthly payments, fulfilling her ISA obligation.

chart illustration max payments

*These figures are for illustrative purposes only and are not predictions of your unique payment experience. Actual ISA terms, earnings amounts, and payment experiences will vary. *All figures in this illustration have been rounded to the nearest dollar.

chart illustation max payments mobile

Payment Cap

Over the course of making monthly income-based payments, you may hit the payment cap. Hitting the payment cap fulfills your ISA*—even if you’ve made fewer than the maximum number of monthly payments.

04.

May 2024

Maya is hired for a job with a salary of $60,000, or $5,000/month. She submits income documentation for ISA servicing during her grace period.

05.

January 2025

Maya’s first monthly payment is due. (Monthly payment = gross monthly income x income share)

06.

February 2025–September 2028

Maya continues making monthly payments and submitting income documentation. Her income may fluctuate with raises or job changes, but her income share will remain 6.25%.

07.

October 2028

Maya hits the payment cap, fulfilling her ISA obligation.

table-1

*These figures are for illustrative purposes only and are not predictions of your unique payment experience. Actual ISA terms, earnings amounts, and payment experiences will vary.*All figures in this illustration have been rounded to the nearest dollar.

table-1

Payment Window

ISA obligations automatically expire at the close of the payment window, provided that you’ve made your payments as required whenever you earned above the minimum income threshold (MIT). Your contract may expire even if you’ve paid less than your initial funding amount or nothing at all.

04.

May 2024

After graduation, Maya freelances, earning $24,800 annually, or $2,067/month. She submits income documentation for ISA servicing during her grace period.

05.

January 2025

Maya’s 6-month grace period ends, and her first monthly payment should be due. Because her earnings fall below the MIT, however, no monthly payments are due. Maya will not have to make monthly payments on months when  her gross monthly income is below $2,500(≈$30,000/year).

06.

February 2025–November 2032

Maya continues to submit income documentation every year and any time her earnings vary. In December 2027, she has earned below the MIT for 60 months. From this point on, each month she earns below the MIT, she makes a $0 payment that counts down to the end of her payment window.

07.

December 2032

Maya continues to earn below the minimum income threshold for x # of months. At the close of the payment window in December 2032, her ISA automatically expires.

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