Overlap with Existing Services: Why would we charge customers for something we provide for free?

If a customer is eligible and we have funds available for Workforce Innovation and Opportunity Act individual training accounts (or other funds available for scholarships), we will enroll them. Free money is always better than a loan, no matter how friendly the terms are. The renewable learning fund will serve customers whom our current offerings are unable to serve (refer to your “why”).

Fear Students Won’t Repay: What will we do if nobody pays us back? Will we send them to collections?

Early data on renewable learning funds suggest that the delinquency and default rates are similar to those of traditional student loans, with very few cases needing to be sent to collections. If someone doesn’t pay us back and does not qualify for a hardship, our servicing partner will handle it at our direction.

Fear Repayments Overburden Students: How will we ensure we aren’t saddling our customers with debt they can’t pay?

Our program principles will guide our decision-making. Students won’t pay if they make less than the minimum income threshold (e.g., $50,000). We'll have hardship provisions, and we won’t accept money from funders seeking to profit off our fund. Participants who make little or nothing at all won’t pay a cent. Those who are successful will “pay it forward” to the next cohort. We’ll make sure that we provide in-depth financial counseling prior to trainees signing a contract to ensure that they understand their obligation.