Deferred Tuition Agreement vs. Student Loan Comparison

Compare a DTA/ISA with a traditional student loan for your U.S. based educational program.

Your Program & DTA/ISA Terms

Full Tuition Cost of Program ($) The upfront cash price.

Type of Deferred Agreement You Are Considering: *

Fixed Total Deferred Tuition Terms

Total Amount to be Repaid under DTA ($) * May be same as tuition or higher.

Deferral Period Post-Program (Months) * Months until first DTA payment.

DTA Repayment Term (Months) * Number of months to pay back the total DTA amount.

Income Share Agreement (ISA) Terms

Income Share Percentage (%) * e.g., 10 for 10%

ISA Repayment Term (Months) * Max duration you pay the income share.

Minimum Annual Income Threshold ($) * Payments start above this income.

Payment Cap ($) * Max total you'll ever repay.

Deferral Period Post-Program (Months) * Months until first ISA payment (if income threshold met).

Your Estimated Avg. Annual Income During Repayment ($) * Crucial for ISA payment estimation.

Alternative: Student Loan Terms (Hypothetical)

Enter terms for a student loan you might consider to cover the tuition cost.

Loan Amount Needed ($) * Typically program tuition cost.

Annual Interest Rate (%) *

Loan Term (Years) *

Loan Origination Fee (%) Enter 0 if none.

Type of Loan Being Considered: This helps frame the qualitative comparison.

In-Program & Grace Period (Months) During which payments might be deferred (interest may accrue).

Comparison Summary

Estimated Financial Comparison

DTA / ISA Scenario

Student Loan Scenario

Qualitative Feature Comparison

Feature	DTA / ISA	Traditional Student Loan
Payment Determination	Varies (fixed total or % of income if ISA)	Fixed monthly payment based on principal, rate, term.
Interest Structure	May not have explicit interest rate; ISA implies variable effective cost. Fixed DTA may include a premium.	Explicit annual interest rate (fixed or variable).
Risk if Income is Low (Post-Program)	ISA: Payments may pause/be low if below income threshold. Fixed DTA: Payments still due.	Federal: Income-Driven Repayment options exist. Private: Less flexible, payments typically still due.
Impact if Income is High (Post-Program)	ISA: May reach payment cap sooner. Fixed DTA: No change.	Can pay off faster with extra payments. Standard payments don't change with income.
Borrower Protections	Varies by provider; less regulated. ISAs may offer payment pauses.	Federal: Extensive (deferment, forbearance, IDR, forgiveness). Private: Limited.
Credit Impact	Reporting practices vary. Some may not report like traditional debt until/unless issues arise.	Reported to credit bureaus. Builds credit if paid on time; damages if not.
Total Cost Predictability	Fixed DTA: Predictable. ISA: Less predictable, depends on income (unless cap hit).	Fixed-Rate Loan: Predictable. Variable-Rate Loan: Less predictable.

Concluding Thoughts & Guidance

Consider your risk tolerance, expected future income stability, and the specific terms of each option. DTAs/ISAs can offer flexibility if your income is uncertain but might be more expensive if your income is high. Loans offer more predictability but less flexibility if your income drops (especially private loans).

Always read all contract terms carefully for any DTA, ISA, or loan agreement before signing. This calculator provides estimates based on your inputs and general knowledge; it is not financial advice.