Q: Hello I signed a ISA for a coding school and on the contract in the disclaimer it says it is not a credit or loan
But according to the to the The Consumer Financial Protection Bureau and the Department of Education it is in fact a private education loan are these grounds for Misrepresentation? I signed the contract because they kept sayin it is not a loan
A:
My immediate advice to you is to never sign any agreement/contract unless you fully understand what it is that you are signing. A general rule of law is that ignorance of the law does not exempt you from it's compliance; and contracts are considered law between the subscribing parties.
That having been said, Section 2 of the ISA Student Protection Act of 2023 defines an Income Share Agreement as (1) the provider credits or advances financing to the recipient; (2) the ISA recipient is obligated to make periodic payments - if any are due - based upon the actual or projected recipient's income; (3) the payment obligation is conditional on the recipient's income exceeding a pre-established income threshold (must be stated in the agreement); (4) there is an ISA duration after which, the obligation to pay is complete regardless of how much has been paid; (5) the ISA agreement MUST establish the terms for the previous points (1) through (4); and (6) the agreement must state that it is an Income Share Agreement subject to the ISA Student Protection Act of 2023. Section 2 goes on to clarify that if this statement is not included in the agreement, then the disbursement is considered a loan.
You do not establish where you reside. Given that a federal law is involved, I suggest that you procure legal counsel from an attorney admitted to the federal bar in your state of residence.
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