Even though there is acknowledgment that reskilling and retraining will be imperative to prepare Americans for the jobs of the future and reinvigorate the American economy following the COVID-19 pandemic, less than half (44%) of Americans say they have access to the education and training programs they need.
Programs offering alternative financing structures, such as income share agreements (ISAs) and alternative credit products, remove the onus from the learner to pay upfront for their training, thereby improving access for individuals pursuing much-needed education. With ISAs, for example, students agree to pay a portion of their future earnings to their training or education provider once they make above an established income threshold and generally continue their payments until they either reach a specified period of time or a specific amount.
Beginning in 2021, ECMC Foundation will invest up to $2.5 million through Education Innovation Ventures into short-term training and education programs that use alternative financing models to accelerate the upskilling and retraining needed for America’s unemployed workforce to find gainful employment and attain family-sustaining wages.
Programs that ECMC Foundation will invest in align the interests of educators, learners and employers by working with education and training providers to offer important wraparound supports that help ensure students complete their program and share in the risk and reward when students are placed in well-paying jobs. Programs supported by EIV will offer an array of student protections, such as early payment, hardship and deferment options, fair pricing, and important student supports, such as career coaching, tutoring, laptops, childcare stipends and more.
Do you have an innovative solution for financing short-term training and education? Contact us.