Stride Funding: Income Share Agreement Review

Stride Funding offers income share agreements and is best for students pursuing high-paying careers who are within two years of graduation.
By Ryan Lane  

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Our Take

4.5

NerdWallet rating 

The bottom line:

Stride Funding offers income share agreements, primarily for students who can maintain a 2.9 GPA or higher and are pursuing high-paying careers. Stride is a good option if you’ll pay less overall with an ISA than other education financing options, or if you can’t qualify for a credit-based private student loan.

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Full Review

Stride Funding Income Share Agreement
Stride Funding Income Share Agreement
Min. credit score
None
Check rate

on Stride's website

Pros & Cons

Pros

  • Payments aren’t due if you’re unemployed, or if your income drops below $30,000 to $40,000 per year.

  • Lending decisions are not based on your credit score.

  • Available for some non-degree granting schools, like certificate and bootcamp programs.

Cons

  • There’s no discount for paying off your agreement early like some lenders offer.

  • Funding may not be available based on your school.

  • Not available in Colorado or West Virginia.

Compare to Other Lenders

Stride Funding Income Share Agreement
NerdWallet rating 
Check rate
Sallie Mae Private Student Loan
NerdWallet rating 
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College Ave Private Student Loan
NerdWallet rating 
Check rate
Min. credit score

None

Min. credit score

Mid-600's

Min. credit score

Mid-600s

Fixed APR

N/A

Fixed APR

4.50-14.83%

Fixed APR

4.44-15.32%

Variable APR

N/A

Variable APR

5.99-16.33%

Variable APR

4.99-15.32%

Full Review

Stride Funding began offering income share agreements, or ISAs, in 2019 under the name AlmaPact. Like traditional student loans, ISAs offer upfront funding for your education. But ISA payments are based on your income, not an interest rate.

Most ISAs are offered by individual colleges. Stride stands out because you can receive funding at most degree-offering schools that are eligible to receive federal financial aid. However, Stride Funding also partners with some certificate, bootcamp and other non-degree, alternative education programs.

Stride caps payments at two times the amount borrowed. For example, if you receive $25,000, you could repay up to $50,000. That limit is lower than some other private ISAs, but you could pay even less.

A Stride ISA can make sense if you expect it to be less expensive than PLUS loans, private loans or your college’s own ISA, or if you can’t qualify for those options. Always max out subsidized or unsubsidized federal loans before turning to any of these alternatives.

Stride Funding Income Share Agreements at a Glance

  • Income shares can range from 1% to 15% of your gross income.

  • Payments aren’t due if you earn less than $30,000 or $40,000, depending on the ISA.

  • Payments are capped at two times the amount borrowed.

How Stride Funding could improve

  • Offer a discount for paying off your ISA contract early.

  • Count qualified periods of unemployment toward your repayment term.

  • Increase transparency on its website, such as providing a sample contract.

Estimate the cost of an income share agreement

Stride Funding income share agreement details

  • Income share rates: 1% to 15%.

  • Soft credit check to qualify: Yes.

  • Repayment term: 5 years.

  • Amounts: $5,000 to $25,000, annually. Lifetime maximum: $50,000.

  • Payment cap: Two times the amount borrowed.

  • Application or origination fee: No.

  • Prepayment discount: No.

  • Late fees: Yes; $10 if you do not make a payment on or before 10 days after the due date.

Compare Stride Funding’s costs with those for other financing options, like private student loans. To see what ISA terms Stride Funding will offer you, apply on its website.

FINANCIAL

  • Minimum credit score: Non-credit based, but negative credit marks, such as previous loan defaults, will disqualify you.

  • Minimum projected post-graduation income: No minimum.

  • Average post-graduation income of approved borrowers: Does not disclose.

  • Maximum debt-to-income ratio: Does not disclose.

  • Can qualify if you’ve filed for bankruptcy: Yes.

OTHER

  • Citizenship: Must be a U.S. citizen or permanent resident.

  • Location: Not available in Colorado or West Virginia.

  • Must be enrolled half-time or more: Yes.

  • GPA requirement: 2.9 GPA or higher.

  • Types of schools served: Borrowers must be enrolled in a degree-granting program — bachelor's degree or higher — that is eligible to receive federal financial aid. Some non-degree, certificate, bootcamp or other alternate education programs may be eligible.

IN-SCHOOL REPAYMENT OPTIONS:

  • In-school deferment: No payments required while you’re in school.

POST-SCHOOL REPAYMENT OPTIONS

  • Grace period: 3 months.

  • Salary floor: Generally $30,000 or $40,000. Payments aren’t required when you earn below this amount. Periods of non-payment extend your repayment term at a 1-to-1 ratio, up to five additional years.

  • Unemployment deferment: Payments aren’t required during periods of unemployment. Deferment extends repayment at a 1-to-1 ratio, up to five additional years.

  • Academic deferment: Yes; some partners allow in-school deferment if the student goes back to school. However, most students apply for unemployment deferment or below minimum income deferment while in school.

  • Internship deferment: Depends on the school.

  • Residency deferment: Depends on the school.

  • Temporarily lower payments: Available for the Deferred Tuition Agreement (DTA) program.

  • Natural disaster forbearance: Yes.

  • Forbearance: Yes; can be granted in one- to three-month increments at a time, up to a maximum of 12 months.

  • Death or disability discharge: Yes.

REPAYMENT PREFERENCES

  • Allows greater than the minimum payment via autopay: Yes.

  • Allows bi-weekly payments via autopay: Yes.

  • Servicer: Launch Servicing.

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: No.

  • Average time from application to approval: 24 to 48 hours, depending on if manual reviews are required.

How to apply for a Stride Funding income share agreement

Before taking out a Stride Funding ISA, or any other type of private student debt, exhaust your federal student loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.

» MORE: NerdWallet’s FAFSA Guide

Compare your projected costs under an ISA to private student loan options to make sure you’re getting the best deal possible. In addition to how much you’ll repay, look at a lender's repayment alternatives and the flexibility it offers to borrowers who struggle to make payments.

STUDENT LOANS RATINGS METHODOLOGY

An income share agreement is not a student loan, but borrowers may choose between the two. NerdWallet believes the best education lending product is one that costs you the least. That’s why NerdWallet’s ratings reward lenders that offer favorable loan terms, limit fees and penalties, and extend borrowers multiple options to avoid default. Points are also awarded for soft credit checks, underwriting transparency and other consumer-friendly features. Use these ratings as a guide, but we encourage you to shop around for the best deal you can qualify for. NerdWallet does not receive compensation for its reviews. Read our editorial guidelines.

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