Julie Margetta Morgan, Joanna K. Darcus, & Tariq Habash

Julie Margetta Morgan is a fellow at the Roosevelt Institute. Joanna K. Darcus is a staff attorney at the National Consumer Law Center, focusing on student loans. Tariq Habash is head of investigations at the Student Borrower Protection Center. 

Recent Articles

Will Income-Share Agreements Be the Next Payday Loans?

Policymakers need to pay attention to the deregulation of these student loan-type products happening in Indiana.

This week, Indiana’s Uniform Consumer Credit Code will be amended to exempt state higher-education institutions from having to comply with key consumer protections. The change is so subtle that it has not drawn much attention, but it has huge implications for Indiana students who sign up for “income-share agreements” (ISAs). These contracts commit a student to pledging a proportion of future income in exchange for money to pay for college. Schools like Purdue University, and the private lenders and investors that it partners with, will no longer be required to comply with many of the rules that apply to other lenders in Indiana. People outside of Indiana should pay attention, too. Former Indiana Republican Governor Mitch Daniels, now president at Purdue, has been an enthusiastic backer of income-share agreements, and has advocated to Congress for their widespread adoption. And income-share agreement advocates, including Daniels, are pushing similar rollbacks of...