• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The College Investor

Student Loans, Investing, Building Wealth

  • About
  • Podcast
  • Research
  • Contact
  • Save For College
      • How To Start

      • How To Save For College
      • How To Pay For College
      • What Is the Average Cost of College?
      • What Is A 529 Plan and Where to Open One in Your State
      • How Much Should You Have In A 529 Plan By Age
      • How To Use A 529 Plan For Private Elementary And High School
      • What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)?
      • The Best Brokers To Open A 529 Plan
      • Tools + Accounts

      • 529 Plans: The Ultimate College Savings Plan
      • 529 Plan Contribution Limits
      • Prepaid Tuition Plans | What To Know
      • Understanding And Using 529A ABLE Accounts
      • Using A Roth IRA To Save And Pay For College
      • FAFSA Deadlines for Financial Aid
      • CollegeBacker Review
      • Upromise Review
      • UNest Review
      • Other Options

      • Student Loan And Financial Aid Programs By State
      • The Guide To Military And VA Education Benefits
      • How To Fill Out The FAFSA
      • How To Find College Scholarships
      • The Best College Scholarship Search Websites
      • How To Find Grants To Pay For College
      • Pell Grants: What They Are And How To Qualify
      • Understanding Federal Work-Study
      • How To Use A 529 Plan If Your Child Doesn’t Go To College
  • Student Loans
      • Borrowing

        • How Student Loans Work
        • How To Apply For A Student Loan
        • How To Find The Best Student Loans And Rates
        • Best Private Student Loans Of June 2022
        • Best Student Loans To Pay For Graduate School
        • Best Student Loans To Pay For Medical School
        • Parent Loans To Pay For College
        • No-Cosigner Student Loan Options
        • Guide To Income Sharing Agreements (ISAs)
        • Best International Student Loans
      • Get Out Of Debt

        • Best Places To Refinance Student Loans In June 2022
        • Best Student Loan Repayment Plans
        • Best Student Loan Refinancing Bonuses And Promotional Offers
        • Student Loan Forgiveness Programs (The Complete List)
        • The Full List Of Student Loan Forgiveness Programs By State
        • Public Service Loan Forgiveness (PSLF)
        • Top Student Loan Scams
        • Average Student Loan Monthly Payment
        • Average Student Loan Debt By Year
      • Reviews

        • Credible Review
        • Splash Review
        • Ascent Review
        • Citizens Bank Review
        • Commonbond Review
        • Earnest Review
        • ELFI Review
        • Laurel Road Review
        • LendKey Review
        • SoFi Review
  • Investing
      • How To Start

        • How To Start Investing in High School
        • How To Start Investing In College
        • How To Start Investing In Your Twenties For 22 – 29 Year Olds
        • How To Start Investing In Your 30s For 30 – 39 Year Olds
        • How To Start Investing With $100 Or Less
        • How To Give Kids The Gift Of Stock
        • What Is Dividend Growth Investing
        • IRA Rollover Chart
      • Tools + Accounts

        • Best Online Stock Brokers
        • The Best Traditional And Roth IRA Accounts
        • The Best Robo-Advisors
        • The Best Investing Apps
        • The Best Places to Trade Options
        • The Best Places To Open A Health Savings Account
        • The Best Solo 401k Providers
        • The Best Self-Directed IRA Providers Of 2022
        • Best Cryptocurrency Exchanges
      • Reviews

        • Vanguard Review
        • Fidelity Review 2022: Still One Of The Best Online Brokers
        • M1 Finance Review
        • TD Ameritrade Review
        • Charles Schwab Review
        • Robinhood Review
        • Webull Review
        • Betterment Review
        • Wealthfront Review
  • Earn More Money
      • Extra Income

        • 15 Best Side Hustles You Can Start Earning With In 2022
        • 53 Side Hustle Ideas To Make Extra Money
        • 100 Ways To Make Money In College
        • 80 Ways To Make Money From Home (In Your Pajamas)
        • 5 Quick Money Making Ideas (That Take Less Than 1 Hour)
        • 10 Interesting Ways You Can Make Money Driving
        • High-Paying Side Gigs That Earn $1,000 or More Per Month
        • The 10 Best Money-Making Apps
        • Paid Surveys: Earn Money For Giving Your Opinion Online
        • 10 Crazy Ways To Make $10,000 You’ve Never Heard Of
      • Build Wealth

        • 35 Passive Income Ideas You Can Use To Build Wealth In 2022
        • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
        • How To Become A Real Estate Investor With Just $500
        • 15 Best Online Business Ideas
        • How to Create Streams of Passive Income on a Limited Budget
        • Residual Income: 7 Super Smart Ways to Build It
        • The Most Common Multiple Income Streams
        • How To Become A Real Estate Mogul With Only $10,000
      • Reviews

        • Fundrise Review
        • RealtyMogul Review
        • FarmTogether Review
        • AcreTrader Review
        • Swagbucks Review
        • Survey Junkie Review
        • TopCashback Review
        • DoorDash Review
  • Personal Finance
      • Banking

        • Best High Yield Savings Accounts Of June 2022
        • 10 Best Money Market Accounts Of June 2022
        • 10 Best Free Checking Accounts In June 2022
        • The Best Bank CD Rates Of June 2022
        • 10 Best Business Checking Accounts In June 2022
        • The Best Online Banks Of June 2022
        • 5 Best Credit Unions Nationwide Of June 2022
        • Best College Student Checking Accounts In June 2022
      • Insurance

        • Best Life Insurance Companies
        • Renters Insurance
        • Car Insurance
        • Pet Insurance
        • Umbrella Insurance
        • Disability Insurance
        • Tuition Insurance
        • Travel Insurance
      • Credit Tools

        • Best Budgeting Apps
        • Cash Advance Apps
        • How To Get A Free Credit Score Report
        • The Best Credit Monitoring Services
        • Debt Settlement: Inside The Secret World
        • Credit Repair Explained: Should You Pay For Help?
        • Best Personal Loan Companies And Lenders
        • Online Loan Companies To Borrow From Home
      • Tax

        • Best Tax Software
        • Free Tax Software
        • IRS Tax Refund Calendar
        • Common IRS Questions and Errors
        • Federal Tax Brackets
        • Capital Gains Tax Brackets
        • 401k Contribution Limits
        • IRA Contribution Limits
        • HSA Contribution Limits
  • Forum
  • Search
Home » Investing » Alternatives » Edly Review: Invest In Student ISAs

Edly Review: Invest In Student ISAs

Updated: October 13, 2021 By Robert Farrington

Tweet
Share
Share
Pin
Email

At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

Edly

Note: Edly is currently paused on taking new investors.

With most student loans, there may be a short grace period after graduation when payments aren’t required. But, after that, payments will begin, regardless of employment status.

With private student loans, payment amounts are also independent of a student’s income level. And if a borrower begins falling behind on their student loan, their credit will be ruined, further setting back their financial prospects.

ISAs or income share agreements are trying to change all of that. ISAs are not student loans. Instead, they pay a student’s tuition and tie payments to income levels. Some ISAs are offered directly by universities and others by companies such as Edly.

Edly lets accredited investors invest in ISAs, providing an alternative investment and investment diversification. In this article, we’ll get an overview of how ISA investing through Edly works.


Edly logo

Quick Summary

  • Get paid a percentage of the future income of students
  • Receive cash payments on a monthly basis
  • Targeted returns of 8-14%, net of fees and expenses
OPEN AN ACCOUNT

Edly Details

Product Name

Edly

Min Investment

$10,000

Target Yield

  8% - 14%

Upfront Fees

0.50% - 1% of investment amount

Management Fees

2% - 4% of cashflows

Indirect Expense Fees

Up to 1% of cashflows

Promotions

None

Table of Contents
Who Is Edly?
What Do They Offer?
Is My Money Safe?
Are There Any Fees?
How Do I Open An Account?
Is It Worth It?
Edly Features

Who Is Edly?

Edly is an ISA marketplace. Its founders are Charles Trafton and Christopher Ricciardi. The company was formed in 2019 and is based in Briarcliff Manor, NY. It has raised $3 million through a seed round. Edly has filed to become a registered investment advisor (RIA) in the state of New York.

What Do They Offer?

An ISA is an alternative to student loans. By using an ISA, a student’s tuition is paid for in exchange for a percentage of their future income. Who is funding these ISAs? Private investors and universities fund them. Investors basically take a bet on a student’s future.

Edly investors must be accredited. This means a net worth of $1 million excluding the primary residence or an income of $200,000 for the last two years.

About ISAs

ISAs started to come onto the scene in 2015. At the time, there were only a small number of schools participating. By 2018, the number of participating schools began increasing and by 2020 stood at about 80. Purdue was the first university to offer ISAs. Trafton was involved with Purdue’s ISA program before co-founding Edly.

Across America, student loan debt is outpacing future wage growth. ISAs tie the value of tuition to a student's future earnings power. In short, students don’t pay for tuition until they get a job.

The amount a student has to pay is then tied to their level of income. As the student’s level of income fluctuates, so will their payment. The minimum income level to start repayments is $30,000 - $40,000. Terms are typically 3-5 years.

Investing In ISAs

ISAs provide investors with monthly income. This income is low during the first few years. But as a student nears graduation and moves into employment, monthly income will increase.

It should be noted that ISAs are alternative investments, which are generally considered higher-risk. Additionally, there’s no secondary market to sell or exchange your ISA. Once you invest with Edly, you are basically stuck for the duration of the investment.

Edly does take steps to reduce risks. These include investing in student contracts and hiring a professional collection agency in the event of non-payment.

Two Types of Investments

Edly offers two types of investment products:

EdlyOutcomes I — Principal Protected:

  • Principal Protection — Investor principal protected by US Government bonds.
  • 8%+ Target Yield.

EdlyOutcomes I — High Yield:

  • 14%+ Target Yield
  • A diversified portfolio of students from the top schools with an objective of generating high yield.

Both Edly investments have the following:

  • 4-Year Expected Maturity
  • Hand-selected school types — focus on Technology, Nursing, Business, and Industrial Vocational.
  • Backed by assets — All Edly investments are backed by ISA contracts.

Is My Money Safe?

Edly investments are not FDIC or SIPC-insured, which means that the company is not as safe as a registered bank or broker.

The Principal Protected product is the safer of the two products, however, as it provides asset protection through government bonds. 

Are There Any Fees?

Yes, Edly charges a variety of management and expense fees.  Here are the details of each:

Management Fees:

For principal-protected investments, the fees are as follows:

  • 0.5% of the initial investment amount per year for two years, PLUS 
  • 2% of ISA cashflows, PLUS 
  • 1% of the Treasury STRIPS cashflows

If not offered on a principal protected basis, the management fees are as follows:

  • 1% of the initial investment amount per year for two years, PLUS
  • 4% of the ISA cashflows.

Indirect Expenses:

Edly will also charge investors all of the out-of-pocket expenses related to the management of the account up to 1% of cash returned to investors. Examples would include fees paid on student payment collection or ISA origination fees.

How Do I Open An Account?

You can visit the Edly website to create an account and begin investing. During the signup process, Edly will need to verify your investor accreditation status. You'll need to submit at least one form of photo ID and will need to substantiate your income or net worth.

Is It Worth It?

If you're an accredited investor with a high investment risk tolerance, Edly can be worth it. It's another method of diversifying your portfolio. Additionally, you’ll be providing students with an alternative to financing their education.

But with the potential for wide income swings over time and the lack of a secondary market, Edly probably won't be ideal for investors who want stability and liquidity. Also, Edly's various fees may give some investors pause and cause them to look for lower-cost alternative investments.

Edly Features

Minimum Investment

$10,000

Maturity

3 to 5 years (target of 4 years)

Target Yield 

EdlyOutcomes I — Principal Protected: 8%+


EdlyOutcomes I — High Yield: 14%+

Principal Protection

EdlyOutcomes I — Principal Protected: Yes, protected by U.S. government bonds

EdlyOutcomes I — High Yield
: No

Management Fees

EdlyOutcomes I — Principal Protected


  • 0.5% of the initial investment amount per              year for two years, PLUS
  • 2% of ISA cashflows, PLUS
  • 1% of the Treasury STRIPS cashflows

EdlyOutcomes I — High Yield


  • 1% of the initial investment amount per year          for two years, PLUS
  • 4% of the ISA cashflows.

Indirect Expense Fees

Up to 1% of cashflows

Distribution Schedule

Monthly, on the 25th day of the month

School Types

Focus on Technology, Nursing, Business, and Industrial Vocational

Liquidity

No secondary market


Early redemption may be allowed in some circumstances

Investor Eligibility

Open to accredited investors only

Customer Service Number

914-603-7491

Customer Service Email

info@edly.info

Mobile App Availability

None

Promotions

None

Edly Review
  • Fees
  • Customer Service
  • Accessibility
  • Ease of Use
  • Investor Information
  • Liquidity
Overall
3.5

Summary

Edly enables investors to earn a percentage of the future salaries of top students by investing in Income Share Agreements (ISAs).

Pros

  • High target yields
  • Monthly cash flow
  • Relatively short maturity (3-5 years)

Cons

  • Low liquidity
  • Higher fees than many more traditional investments
  • Open to accredited investors only
  • Open An Account
Robert Farrington
Robert Farrington

Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.

He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.

He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.

Edly Review: Invest In Student ISAs
Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
Subscribe
Connect with
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Primary Sidebar

Featured Broker Reviews

>  Vanguard (recommended)
>  Fidelity
>  Robinhood
>  TD Ameritrade
>  M1 Finance
>  Schwab

Featured Robo-Advisors

>  Betterment (recommended)
>  Wealthfront
>  WealthSimple
>  Blooom

Annual Contribution Limits

  • 401k Contribution And Income Limits
  • IRA Contribution and Income Limits
  • HSA Contribution and Income Limits
  • 529 Plan Contribution Limits

More On Investing

  • Best Online Stock Brokers In 2022 (According To Readers)
  • Best Brokerage and Investing Bonus Offers In June 2022
  • The Best Places To Open An HSA (Health Savings Account)
  • 5 Best Investing Apps Of 2022
  • How To Buy Stocks Online For Free
  • The Best Robo-Advisors Of 2022
  • The Best Self-Directed IRA Providers Of 2022
  • The Best Traditional And Roth IRA Accounts Of 2022
  • Comparing The Most Popular Solo 401k Options
  • Top 3 Automatic Investment Apps Of 2022

Footer

Who We Are

The College Investor is an independent, advertising-supported publisher of financial content, including news, product reviews, and comparisons.

Connect

  • Contact Us
  • Advertise
  • Press & Media

About

  • About
  • Our Team
  • Podcast
  • Editorial Guidelines
  • How We Make Money
  • Archives

Social

Copyright © 2022 · The College Investor · Privacy Policy ·Terms of Service · DO NOT Sell My Personal Information

wpDiscuz