How is MentorWorks different from student lenders?

MentorWorks provides students with the flexibility to pursue their chosen career path without the burden of traditional student loans. MentorWorks utilizes Income Share Agreements (ISAs) to make educational programs more accessible through reducing the up-front tuition costs. In addition, through using a “fund and support” model, MentorWorks paves an education-to-career pathway for students with access to top-notch employers and career mentors.

What does MentorWorks get? How does MentorWorks generate revenue?

MentorWorks manages the ISA fund for our investors and get a percentage of funds under management and through repayments. MentorWorks is a social-impact, for-profit business at it’s core.

ISA Selection Process

How are students selected for the ISA program?

MentorWorks uses different measures of student academic performance in college to select their ISA candidates, education background, professor recommendations, and a short statement of career aspirations. Applicants will be screened based on these criteria among other details outlined in the ISA application. MentorWorks does not conduct credit background checks, nor requires a credit score*.

*We will run a credit report to ensure there are no current or past deliquncies.

Is there a GPA requirement?

MentorWorks does not have a set GPA requirement. Instead, selection depends on the overall pool of applicants as well as the relative GPA average levels in their selected majors. 

What if my grades start to do poorly after I enroll and receive money?

MentorWorks expects a minimum level of academic performance to continue funding its ISA candidates.

MentorWorks has professors on its team, and understands that individuals can have a bad semester. MentorWorks will work with students who need additional assistance.

Is this service available for international students?

At this point, MentorWorks is able to provide this service for U.S. citizens and permanent residents only.

If you are an international student, please let us know your interest by emailing us at contact@mentorworks.com and we will keep you updated when (and if) we are able to provide this service to international students.

ISA Structure and Financing

What is the maximum amount of financing that I can ask for?

The MentorWorks ISA program currently provides financing up to $20,000.

What are the payment terms, duration and rate?

Payment term can be between 3 and 9 years –  depending on amount borrowed and income share rate. Payment forgiveness is allowed based on income levels falling below a predetermined threshold.

Is there an interest rate?

ISAs are not loans, and so there is no interest rate. Every month you repay a fixed percentage of your salary. For example, if the ISA equity rate is 2%, and your annual (pre-tax) salary is $50,000, you pay (0.02/12)*50,000 = $83. This is just an example, and actual equity rate depends on the amount borrowed, academic performance, etc.

What is the income share rate?

Instead of interest rates, MentorWorks’ ISA repayments are based on an “income share rate.” This refers to the fraction of annual income funded students pay for the financing they are approved for.

Is this tied to my credit?

Since ISAs are not loans, MentorWorks will only use adverse credit history (current or past delinquencies) as a gating mechanism for the ISAs. It will not affect the pricing of dispensed ISAs, nor will payment forgiveness affect your credit score adversely.

Do I have to pay a fee to be a part of this?

No, there are no fees to join the MentorWorks ISA program. Selection into the program will be purely on the basis of academic merit and future potential.

How is this different from a loan if I'm still making payments after graduation?

Payment are based on your outcome. ISAs are different because, unlike loans, the amount of money paid decreases if the students salary decreases, and increases if the students salary increases. 

What if I am unable to make payments?

MentorWorks offers automatic payment deferrals for inability to make payments for financial reasons including job loss and salary cuts.

What if I default on payments?

Unlike a loan, ISAs are default-free. If you cannot make payments for financial reasons, MentorWorks will defer your payments upon submission of proof of financial difficulty. After a certain number of deferral periods, the payments will be forgiven.

Can I make early payments?

Yes, MentorWorks has an early repayment provision.