What is Stride Funding?
Stride Funding’s philosophy is that education funding providers need to help students connect the cost and value of education. They believe through researching student outcomes they can help provide financing options that never require a co-signer or a minimum credit score. Stride Financing looks at where you are going rather than where you came from and uses that data to help them provide flexible income-based repayment. No longer are traditional student loans the only way students can pay for college, but rather Stride offers Income Share Agreements (ISAs) to students as an alternative option to help pay for school when federal funds aren’t enough. Along with providing financial backing to continue education, Stride works with students to provide them with career resources alongside a like-minded network.
Stride Funding believes that before taking out an ISA, you should complete the Free Application for Federal Student Aid (FAFSA®) and first take advantage of any federal student aid and loan options. Tess Michaels, the founder and CEO of Stride Funding shares that “we always advise students to take scholarships, grants, and subsidized federal loans first. We are an alternative to private loans and some unsubsidized federal loans.”
What is an Income Share Agreement (ISA)?
An Income Share Agreement (ISA) is a contract that allows you to borrow the money you need to attend college by promising to repay a fixed percentage of your future Qualified Monthly Earned Income. Unlike federal financial aid or private loans, your repayment does not include an interest rate. ISA repayment is based on a fixed percentage of your salary upon graduation and securing employment, with Stride’s ISA capped at 2x the amount you borrowed.
Learn More >>> A Comprehensive Guide to Income Share Agreements
Qualifications for a Stride Funding ISA
To qualify for a Stride ISA, you must
- Be attending an accredited four-year Title IV college, university or Stride-partnered bootcamp at least half-time.
- Be within two years of graduating calculated from your funding date and 24 months until your graduation.
- Be enrolled as an undergraduate student in your last two years before graduation, a graduate student, or a doctorate student.
- Be accepted in a program that meets the outcome-driven eligibility criteria set out by Stride Funding.
- Be a resident or attend school is one of the states Stride serves. Stride ISAs are available for all U.S. states except Alabama, Colorado, Iowa, South Carolina, and Washington.
- Be a U.S. citizen or a permanent resident attending school in the U.S.
- Have a current GPA of 2.9 or higher.
Pros and Cons of ISAs
| Pros | Cons |
|---|---|
| Stride's repayment term is set for 5-10 years. | If you earn a high wage during your payment period, you may end up paying back up to double what you borrowed. |
| No co-signer or minimum credit score is required. | If you choose to continue with your application after you have been pre-approved, you will have to have a hard credit check. |
| Stride offers unemployment and military deferment. Contact Stride for more information regarding these options. | You may not be able to refinance your ISA as it is not considered a loan. |
| If your income is less than $30,000/year ($2,500/month), you are not required to pay back your loan during that time. (Economic forbearance is available for up to 6 months and no more than 3 consecutive months.) | Any time you are below the income threshold, or under an approved forbearance, time may be added to the end of your maximum payment period (but regardless of added time, your maximum payment period will never exceed 10 years). |
| You can borrow between $2,500 and $25,000 each school years. | There is a lifetime maximum of $50,000 Stride will allow you to borrow. |
| ISAs have a shorter maximum payment period than traditional student loan repayment terms. | You can pay back a Stride Funding ISA early by meeting the Stride payment cap of twice the amount you borrowed. (You will never pay more than two times the amount of your IS agreement.) |
| Automatic payments are available to help prevent late payments. | Late fees are $10 if your payment is more than 10 days late. |
How to Apply for a Stride ISA
When it comes to Stride’s ISA, you can quickly apply through their website. You will be asked a few questions about yourself, your school and your program, a process which takes under a minute according to Stride.
If you qualify, you’ll instantly receive a quote and be eligible for a Stride ISA. If you want to accept the terms presented, you will have to finish your application.
You will have to provide answers to detailed questions about your school, intended graduation date, personal information such as your contact info, a personal reference contact, social security number, your program information, expected earning, and unofficial copies of your transcript.
Once you accept the rate and terms of your ISA, it will be disbursed by your school.
Read about Financial Aid Disbursement to learn more!
Repaying a Stride ISA
As you are applying for a Stride ISA, the eligibility portal allows you to compare your ISA to a private student loan. Take a look at the U.S. Bureau of Labor Statistics’ Occupational Outlook Handbook by the to understand your potential earnings based on your employment of choice. When entering into an ISA, be aware of what kind of monthly repayment amount you can expect with regards to your future salary. Stride’s repayment model has you paying off your ISA in five years as opposed to the 10 or more years with a traditional student loan.
Stride Funding Customer Service
Stride Funding says it desires to give students access to “both an affordable education” as well as the “soft skills necessary to navigate their future,” by not only offering financial help, but by also ongoing support with the Stride Career Support portal. It gives Stride students job preparation and job search materials. They seek to be a “lifetime career and financial wellbeing support for students.”
Is a Stride ISA Worth It?
Before applying for any ISA, you should take advantage of all scholarships and grants available to help lower your total cost of attendance. Next, look at what family contributions or other financial resources you may have access to. Then, complete your FAFSA and exhaust all your federal student loan options. You should also complete your research and compare your other options, such as private student loans to ensure you find the best (and smartest) financial decision for you, both now and for your future.
Stride says it will never run an ISA with an income share percentage greater than 15%, which may be higher than the interest on a private student loan. If you are unable to cover the cost of attendance with federal student loans, carefully read and understand the terms of any loan or funding agreements you may be looking into.