Income share agreements, or ISAs, are essentially IOUs, but instead of having an exact number attached to the IOU it's based on a percentage of a person's salary. Edith's standard ISA is 1% for 1 year after graduation. For example, if your base salary was $100,000 for your first job, you would repay $83 a month to your mentor for your first year of work. Other types of compensation like signing bonuses or end of year bonuses aren't considered as part of the ISA.
2 main reasons:
Edith's ISA is super simple - 1% of your base salary for 1 year after graduation, assuming that you make over $40,000 a year in your job. If you don't make over $40,000, you don't repay anything until you do.
No problem, Edith will continue to work with you to help you find a job after graduation. During that time, you won't owe anything and your ISA enters what's called a deferment period. The beauty of an ISA is you owe nothing upfront, and only have to repay once you find a job.
If you end up not finding a job or end up making less than $40,000 a year for any reason (grad school, illness, etc.) your ISA enters a deferment period where you owe nothing!
If you earn less than $40,000 for any reason (grad school, loss of employment, medical reasons, etc.), your ISA enters a deferment period. During this period, you owe nothing until you make a salary above $40,000 a year ($3,333 monthly). If your ISA is in a deferment period for over 5 years, the ISA is completely canceled and you'll owe nothing.
That's great! We hope you do. The Edith ISA has a payment cap of $2,000, so even if you do become the next Mark Zuckerberg you'll never repay more than $2,000. We also have plenty of mentors in the VC/startup space, so we can definitely help you get there if that's something you're interested in.
Any other questions? Reach out to us at email@example.com!
New Edith Mentor: Rouhin Ghosh
Rouhin is currently venture investors at Builders VC. He was previously at ICONIQ Capital and Wells Fargo's Tech Investment Banking group.
New Edith Mentor: Griffin Kao
Griffin is a Brown CS and MechE grad from Philadelphia who is currently an APM working in data privacy at Google.