Edly allows investors to invest in the education of students and get paid a percentage of the students’ future earnings by investing in Income Share Agreements (“ISAs”). EdlyOutcomes is a professionally managed account selecting ISAs from students in top programs and leading universities and schools.
How you make money
Track record: 18.65% realized cash return. Earn returns (monthly income) from a percentage of student earnings upon graduation. Instead of paying a fixed interest rate, students pay a fixed percentage of their salary. This Income Share Agreement (“ISA”) allows students to avoid student loans, and gives investors an attractive return as the students do well in their careers. Target return is 8% - 14% with 8% principal protected by US Government Bonds.
How Edly makes money
The company takes a small cut of each investment, and also charges schools a fee to list their ISAs on the platform.
Is it safe?
Default Risk — Investments are neither FDIC insured nor equivalent to bank CDs or Treasury notes. Inflation Risk — Similar to bonds (since there’s a fixed rate), you have the risk of inflation eating at your returns. However, with the high rate of return, this risk is reduced. Liquidity Risk: Loans are typically held for the duration of the term. Economy Risk — Another recession will more than likely increase overall defaults of individuals within Edly. This would cause your return to decrease.