BOSTON, Jan. 13, 2021 /PRNewswire-PRWeb/ -- MentorWorks announced today that it has partnered with non-profit organizations, Boston Impact Initiative (BII) and ECMC Foundation, to create the MentorWorks Students First ISA Fund I. With committed capital of up to $450K, the Fund is dedicated to assisting Boston-based students, primarily of color, attending community & technical colleges.
"We believe this is a true opportunity for students of color in Boston to access the financial and educational resources and support needed for success." said Aliana Pineiro, Impact Director of Boston Impact Initiative. "The MentorWorks Students First ISA is highly aligned to BII's mission as an impact investor focused on economic justice. We are thrilled to partner with ECMC Foundation and MentorWorks to bring this alternative educational funding option to the Boston community."
"We are enthusiastic about this collaboration with MentorWorks and Boston Impact Initiative. Income Share Agreements (ISAs) crucially address student funding gaps while bypassing the burden of student debt. With strong protections in place for learners, this ISA program holds the power to unlock meaningful opportunities for students from systemically underserved backgrounds," said Emily Bestwick, Education Innovation Ventures Program and Investment Officer of ECMC Foundation. "We're looking forward to learning from MentorWorks' multidimensional approach to connect learners with access to affordable capital, career and technical education, and career guidance in order to drive economic advancement for students in Boston."
MentorWorks is a proven leader in the Income Share Agreement funding space, having successfully originated nearly $2M ISA funding in 2020. ISAs are an innovative alternative to student loans. With an ISA, students pay a percentage of their future income for a set period of time, up to a maximum cap, without accruing interest. Unlike a loan, students do not pay until they find a job and reach the minimum income threshold. The payments adjust according to the level of the student's income – making it an outcome-based model with downside protections in place for the student. The MentorWorks' ISA obligation can be ended early by making early payments as listed in our early payment schedule. In addition, MentorWorks provides career support to its students through its proprietary Talent Accelerator Platform (TAP), which is designed to enhance employment outcomes of funded students.
"We are thrilled to be working with Boston Impact Initiative and ECMC Foundation," said Karthik Krishnan, CEO and President of MentorWorks, "We all share a common vision of reducing students' debt burdens and give them opportunities to find social capital of the kind that the MentorWorks Talent Accelerator Platform (TAP) can provide. BII and ECMC Foundation are exemplary impact groups that have true vision and the world is a better place due to their existence. This fund will support low income students to get technical and vocational training that will lead to fruitful employment."
About Boston Impact Initiative
Boston Impact Initiative is an impact investment fund focused on closing the racial wealth divide in Eastern Massachusetts. Since 2013, BII has invested integrated capital (equity, debt, grants) into regenerative small businesses that are restoring the productive capacity of communities of color.
About ECMC Foundation's Education Innovation Ventures
ECMC Foundation is a national postsecondary education funder focused on facilitating improvements that affect education outcomes - especially among underserved populations - through evidence-based innovation. Education Innovation Ventures, the Foundation's program-related investment portfolio, makes early-stage catalytic investments into for profit and nonprofit ventures that seek to improve educational outcomes and economic mobility for systemically underserved learners and jobseekers.
About MentorWorks Education Capital
MentorWorks Education Capital provides Income Share Agreements (ISA), also known as Income Driven Payments (IDP), which enables college and non-traditional students to complete their education without incurring up-front tuition costs. ISAs are alternatives to loans with which approved students will have their tuition paid and then will pay a percentage of their future income for a fixed period of time, up to a maximum cap, without incurring interest. Uniquely, MentorWorks also provides career development support, mentoring and access to employers through their online and asynchronous Talent Accelerator Platform (TAP).
To learn more about MentorWorks Education Capital visit: mentorworks.com or reach out to Micha Sabovik, COO, at [email protected].
Follow MentorWorks Education Capital on LinkedIn at http://www.linkedin.com/company/mentorworksISA.
Micha Sabovik, MentorWorks Education Capital, Inc., +1 (617) 758-8981, [email protected]
SOURCE MentorWorks Education Capital, Inc.