Final Disclosure Sample


You have a right to cancel this transaction, without penalty, by midnight on August 27, 2017.  If you cancel by this date, you are canceling the contract in its entirety, including the disclosures.  You may cancel by writing us at Vemo Education, P.O. Box 2453, Oldsmar, FL 34677 or Fax (813) 438-7862.  A mailed cancellation letter will be deemed timely if postmarked not later than the cancellation date listed above.

Income Share Agreement Terms

Funding Amount


Income Share


Payment Term


Payment Cap





xxx months



The amount of funds you will receive per academic year plus any funding charges.


The percent of your total earned income that you will share each month.


The maximum number of months during which you will share your income.


The maximum amount you will pay over the payment term.


Amount paid to you


Amount paid to others on your behalf:
· Purdue University

+ $xx,xxx

Initial funding charges:

  • Origination Fee
  • Disbursement Fee

+ $0

Total Funding Amount

= $xx,xxx


  • Your income share is the percentage of your future earned income you will owe in return for the funding you receive.  Your share is not an interest rate or annual percentage rate. 
  • Your income share is fixed.  This means that it will never differ from the income share percentage shown above.
  • Your payments will vary based on the amount of your earned income.  The total amount you will pay may be more or less than your funding amount.
  • The maximum you will pay is $xx,xxx, regardless of your earned income.  You may also pay this maximum amount (less any payments made to date plus any outstanding fees) in order to extinguish your obligations before the payment term ends.


Late Fee:  The lesser of $5 and 5% of the payment amount due.  Returned Payment Fee:  $20.

Income Share Agreement Payment Illustration

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 charge interest).  An ISA requires you to pay a fixed percentage of 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 average earned income.

Average Annual

Estimated Monthly Payments Under Differing Levels of Earned Income

$[xx,xxx] Income Share Agreement

[x.xx]% income share, [xxx]-month term

Monthly Payments

Total Payments

< $20,000


















About this illustration

The illustration assumes that you make monthly payments tied to earned income over 100 months.  When your monthly earned income is less than $1,667 (equivalent to $20,000/year), your account will be placed in a deferment status, and you will not be required to make payments.  If your cumulative payments reach the payment cap, then you make no further payments and your account is closed in good standing.  The payments columns assume that your average earnings remain the same over the payment term.  Your actual total payments may be a blend of monthly payments since your earnings may fluctuate over time.  Remember that your earned income will depend on many factors, including your occupation, industry, and the area of the country in which you work.  All dollar figures have been rounded to the nearest dollar.

Final Disclosure Reference Notes

What will you pay under an Income Share Agreement (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 Funding Amount.  It will depend on your future earned income.

What documents will you need to provide for us to calculate what you owe?

By one month before first due date

Every time your

income changes

By April 30

each year


Pay stub, letter from your employer, self-employment contract, consulting agreement, or other verifiable source
(dated within 30 days)

Pay stub, letter from your employer, self-employment contract, consulting agreement, or other verifiable source (showing current earnings)

This is used to re-calculate your required payments.  If do not to provide it, we will assume your earned income has increased by ten (10) percent.

Year-end pay stub, Form W-2, Form 1099, or Schedule K-1 for all sources of earned income and validation of the dates of your employment (showing prior year’s earnings)

This is used for reconciliation.  You must reimburse us for any underpayments, and we will credit your account for any overpayments—or refund the excess amount if your payment term has ended.

We may obtain your authorization to access your tax return information directly from the IRS or similar taxing authority for any and all years of your payment term.

This may be used for reconciliation.

Can you end your payment obligation?

  • You may extinguish your ISA before the Payment Term ends by paying: Payment Cap − payments already made + any outstanding fees.

When do payments begin?

  • You will begin making payments on the first day of the month following six (6) months after you complete or withdraw from the program.

When do payments pause?

  • After you leave the program, your account will be placed in a deferment status and you will not owe payments if you can demonstrate that you:
  • have enrolled at least half time in higher education or training,
  • earn less than $1,667/month (equivalent to $20,000/year),
  • are unemployed, or
  • are not in the labor force.

We may extend your payment term by one month for each month of deferment, up to sixty (60) months, unless you are employed full time or are unemployed.

See the Additional Terms below for further information and terms and conditions regarding deferment, nonpayment, and early termination.

Back a Boiler – ISA Fund will enforce the terms of its ISAs to the fullest extent allowed by law.

© Copyright 2017 Back a Boiler – ISA Fund, LLC

Final Disclosure (ASD) as a printable pdf

Back a Boiler – ISA Fund

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