MOON TOWNSHIP — Certain Robert Morris University students could receive up to $5,000 annually with the new Colonial Success Fund.
Through a new financial tool known as an income share agreement (ISA), select students can receive this funding but will be required to pay a set percentage of their income after their graduation.
“Since this is not a loan in the traditional sense, there is no interest as that term is commonly understood. You pay a fixed portion of your income (assuming your income exceeds the minimum threshold), and over the entire term of the ISA you’d pay no more than 1.8 times the original amount,” said vice president of public relations and marketing for Robert Morris University, Jonathan Potts.
Graduates in the process of paying off an ISA, will not be required to make their payment if their minimum income falls below a certain threshold. Additionally, graduates who do not exceed a gross monthly income that exceeds the annual equivalent of $25,000 will not have to make a payment until their income passes that level.
Students who use an ISA will not have to make more than 84 payments and can expect a payment window of 120 months. The ISA obligation will automatically expire for students who follow the contract once their payment window closes, even if they have not yet met the payment cap or reached the maximum number of monthly payments.
“Through the Colonial Success Fund, Robert Morris University is making a direct investment in our students’ professional outcomes, and ensuring that an RMU education will remain affordable and accessible for our families,” said RMU President Chris Howard. “We are placing a bet on our students’ professional success, and we know it will pay off for them,” said Howard.
The Colonial Success Fund came to fruition after Robert Morris received $710,000 from an anonymous donor. The fund was designed in partnership with Vemo Education and 10 students are currently using it.
For more information on the Colonial Success Fund click, here.