FULFILLING YOUR OBLIGATION. Your payment obligation under your ISA ends upon the earliest to occur of the following – (a) you make the Maximum Number of Payments; (b) the total of your payments (not including fees) reaches the Payment Cap; or (c) more than 60 months elapse after your Grace Period ends.
FULFILLING YOUR OBLIGATION. Your payment obligation under your ISA ends upon the earliest to occur of the following—(a) you make the Maximum Number of Payments; (b) the total of your payments (not including fees) reaches the Payment Cap; or (c) more than 72 months elapse after your Grace Period ends. FEES: Late Fee—The lesser of $5 and 5% of the payment amount due. Returned Payment Fee—$25 ($20 for NY residents). Payment Illustration Annual Earned Income $8,500.00 ISA 5.50% income share, Up to 48 monthly payments Monthly Payment Number of Payments Total Payment <$40,000 $0 0 $0 $40,000 $183 48 $8,800 $60,000 $275 48 $13,200 $80,000 $367 42 $15,300 $100,000 $458 34 $15,300 An ISA is different from a loan (which has principal and interest payments) or a conventional tuition payment plan (which requires payment in full and may include interest charges). An ISA requires you to make a payment calculated based upon your earned income each month for a fixed period of time. The table below compares illustrative monthly and total ISA payments for different levels of earned income. • This illustration assumes that you make up to 48 monthly payments tied to gross earned income and that your income is constant. • When you return to school or when your monthly earned income is less than $3,333.33 (equivalent to $40,000/year), your account will be placed in a deferment status, and you will not make payments for every month your income is below this threshold. • If your cumulative payments reach the Payment Cap, then you will make no further payments, and your account will be closed in good standing. • Since your earnings may change over time, your actual payments may also vary over time, so this illustration may not apply to your specific circumstances. • All payments have been rounded to the nearest dollar.
FULFILLING YOUR OBLIGATION. Your payment obligation under your ISA ends upon the earliest to occur of the following—(a) you make the Maximum Number of Payments; (b) the total of your payments (not including fees) reaches the Payment Cap; or (c) more than 64 months elapse after your Grace Period ends. FEES: Late Fee—The lesser of $5 and 5% of the payment amount due. Returned Payment Fee—$25. Payment Illustration Annualized Earned Income $6,500.00 ISA 6.00% income share, Up to 40 monthly payments Monthly Payment Number of Payments Total Payment <$40,000 $0 0 $0 $40,000 $200 40 $8,000 $60,000 $300 39 $11,700 $80,000 $400 30 $11,700 $100,000 $500 24 $11,700 An ISA is different from a loan (which has principal and interest payments) or a conventional tuition payment plan (which requires payment in full and may include interest charges or a finance charge in the form of a processing fee). An ISA requires you to pay a fixed percentage of your earned income each month for up to a Maximum Number of Payments. The table below compares illustrative monthly and total ISA payments and the number of payments required for different levels of earned income. • This illustration assumes that you make up to 40 monthly payments tied to gross earned income and that your income is constant. • When your monthly earned income is less than $3,333.33 (equivalent to $40,000/year), such as when you return to school, your account will be placed in a deferment status, and you will not make payments for every month your income is below this threshold. • Since your earnings may change over time, your actual payments may also vary over time, so this illustration may not apply to your specific circumstances. • All payments have been rounded to the nearest dollar. Final Disclosure Reference Notes When do payments begin? You are not required to make any payments while you remain enrolled at SDWP or during your 3-month Grace Period. Your Payment Term begins on the 1st day of the month after your Grace Period ends. Your 1st Monthly Payment is due 1 month after your Payment Term begins. What will you pay under an ISA? You will pay a percentage of your earned income. Monthly payment = Income Share × monthly earned income. The total amount you will be required to pay may be more or less than the ISA Amount. It will depend on your future earned income. What documents will you need to provide for us to calculate what you owe? By the end of the Grace Period A pay stub, letter from your employer, self-employment contract, consul...
