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.
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.
Maya makes the maximum number of monthly payments, fulfilling her ISA obligation.
*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.
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.
Maya hits the payment cap, fulfilling her ISA obligation.
*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.
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.
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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