Q: When do I start making payments under the Income Share Agreement (ISA)?
A: Your repayment begins once you start earning income from your new job and receive your first paycheck. Until then, payments are deferred, meaning you don’t owe anything while you’re searching for a job or not earning income.
Q: How is my payment amount calculated?
A: Your payment is based on a fixed percentage of your gross income from each paycheck. For example, if your income share is 5%, you’ll pay 5% of your paycheck amount.
Q: Is there a limit to how much I have to pay?
A: Yes. Payments are capped at $5,000 total and must be completed within six months. This ensures your repayment is both limited and time-bound.
Q: Can you provide an example of how payments work with a 5% income share?
A: Sure! If your annual salary is $100,000:
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5% of $100,000 equals $5,000 total repayment.
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Spread over 6 months, that’s $833.33 per month.
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Once you’ve paid $5,000 or completed six months of payments, your obligation ends.
Q: What if I don’t earn income right away?
A: You won’t make any payments until you start earning. The ISA is designed to avoid upfront financial burden during your job search.