Former Governor and now Purdue University President Mitch Daniels recently sent a letter to Speaker of the House Paul Ryan and Senate Majority Leader Mitch McConnell urging them to include the Investing in Student Achievement Act of 2017, from Congressman Luke Messer (IN-06), in the broader tax reform plan.
The Investing in Student Achievement Act of 2017 seeks to help more students afford a college degree and is inspired by Purdue’s ‘Back a Boiler’ program, which is the first major income share agreement program in the nation. Income share agreements (ISAs) allow organizations or entities to fund a student’s college degree in exchange for affordable, income-based payments after the student graduates.
Unlike private student loans, ISAs do not accrue interest and a student only makes payments if they are employed and receiving an income above 150% of the Federal Poverty Line ($18,090 at present) after graduation.
“Indiana families are struggling to send their kids to college, and entire generations of young Hoosiers are entering the workforce handcuffed by student loan debt,” Messer said. “President Mitch Daniels’ program at Purdue is changing the game, and I thank him for his continued support of efforts to make college degrees more affordable.”
Daniels stated: “We hope tax reform legislation will include bipartisan supported language from S. 268 Investing in Student Success Act and H.R. 3145 Investing in Student Achievement Act to provide the clarity needed to grow this innovative financing mechanism and continue to open the doors of higher education to every American, regardless of where they begin their American dream.”
Indiana Sen. Todd Young and Florida Sen. Marco Rubio introduced the similar legislation in the Senate.
