Young's ISA Bill Subject of Capitol Hill Hearing Featuring Former Governor Daniels

Statement

In July, Congressman Young's years-long effort to craft legislation that would provide students access to an innovative higher education financing tool, called an Income Share Agreement (ISA), culminated in the introduction of his Investing in Student Access Act (or the ISA Act).

Upon introduction of his bill, Young noted that the class of 2015 will of graduated with the most loan debt in United States' history, and he reiterated that student loan debt is likely the next bubble to burst.

"Not enough is begin done to address the affordability problem," Young argued. "That's why I crafted this ISA bill--because we're in dire need of a real market-driven solution that's not only good for students, but good for American taxpayers whose tax dollars aren't involved and at risk."

While ISAs are not a new idea, Young's legislation provides the legal certainty investors needed for the tool to be implemented on a larger scale.

The bill clarifies the tax treatment for both the student at the front and back end of the agreement. And maybe most importantly, it puts in place robust consumer protections for students.

Since the introduction of Young's ISA Act of 2015, dozens of thought-pieces have been penned discussing the financing tool, from articles in the Wall Street Journal, to the Washington Postand Forbes.

On Wednesday, September 30th, former Governor of Indiana and current Purdue President Mitch Daniels testified before the Joint Economic Committee, wherein he discussed what has been dubbed "The Indiana Experiment"-- formally known as the Bet On A Boiler program being piloted at Purdue University in West Lafayette, Indiana.

Purdue's Bet On A Boiler program is the first of its kind. The university has partnered with private firms that will manage income share portfolios in order to provide students the choice to cover all or a portion of their tuition through an ISA.

In the Wednesday hearing, university President Mitch Daniels said of the innovative ISA idea: "You want debt-free education, here it is."

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