u/Nsevedge wrote (the comment Michael replied to):
Here's why they are a trap. As the CEO of Devslopes, we where sold heavily by multiple companies to offer ISA's to our students. First, if that student get's a job at a gas station - they will still have to pay back the cost of the program plus a 25%+ interest rate (including t
u/michaelnovati replied ·
In terms of ISAs though I just think you have to think of it as a loan nothing more. You have 3 options:
1. pay $X upfront
2. pay $Y a month for 4 years on a normal loan and end up paying $X + a few thousand in interest
3. don't pay anyhting until 12 months from now and if you have a job, and if you do pay $Z per month for 4 years up to $A and it ends up being $X + more interest than #2 but not thaaat much more.
If you think of it as wtf I'm not doing 1 or 2, I only want to pay if this thing works, what a deal, I'm going with 3, you are choosing an ISA for the wrong reasons.
And program should make that very clear. If they don't might be duping you.
Like if you chose option #2 and have a job at a gas station, you still have to pay back the loan with interest - lower interest than #3, but you might not be able to make the payments and default on the loan.
If you understood it this way though you might not also choose #3 and programs have to try their best to explain things clearly.