INCOME SHARE AGREEMENT AS A TOOL FOR STUDENT FINANCING OF TERTIARY EDUCATION IN A PERIOD OF SOCIO-POLITICAL AND ECONOMIC UNCERTAINTY IN NIGERIA

Income Share Agreement (ISA) is a student financing tool that allows students to borrow money for their education and repay it as a percentage of their income after graduation. ISAs are relatively new form of student financing, but they have the potential to be a valuable tool for students in Nigeria, where access to traditional student loans is limited and the economy is uncertain. The Nigerian economy has been volatile in recent years, with high inflation and unemployment rates. This makes it difficult for students to predict their future earnings and to repay traditional student loans. ISAs, on the other hand, are designed to be flexible and adaptable to changes in a student's income. Income share agreement can help to increase access to higher education for students from all backgrounds and reduce the burden of student debt. The advantages of ISAs amongst others include; ISAs are based on a student's future earning potential and ISA payments are capped at a certain percentage of a student's income, so students are never at risk of being overwhelmed by their debt. Despite the benefits of ISAs, there are a few potential challenges that need to be addressed before they can be widely implemented in Nigeria. This study also delved into benefits of income share agreement, ISA as a tool for student financing of tertiary education; challenges of income share agreements; and socio-political and economic uncertainty in Nigeria. Based on the study, it was recommended amongst others that there is need to raise awareness of ISAs, develop a regulatory framework, and create a robust risks assessment system that could enable students have access to financing their higher education in this period of socio-political and economic uncertainty in Nigeria.

Income share agreement, Student financing, Tertiary education, Socio-political and economic uncertainty,

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