POTSDAM – Clarkson University has unveiled a new program that will allow its students to pay their tuition back through their salaries following graduation rather than by borrowing thousands of dollars.

The Lewis Income Share Agreement (LISA) would be an interest-free way to finance education and is somewhat of a counter to SUNY’s Excelsior Scholarship that allows middle-income families to send their children to college for free. Clarkson will allow up to 20 students to pay their tuition through an income share agreement as an alternative to debt.

“The idea of LISA may seem confusing but can be explained quite simply,” the college said. “You apply for one of our 20 coveted spots for LISA. Upon acceptance, you agree on payment terms and attend Clarkson, reducing or eliminating private or parent PLUS loans in the process. After you graduate, you give Clarkson the agreed upon percentage of your salary for an agreed upon number of years.”

“You are only required to pay the agreed-upon percentage of post-graduation salary for the number of years committed to in the original contract,” Clarkson’s website says. “If that amount is not as much as what was originally given, the rest is forgiven.”

Loans create substantial risks for students if they cannot afford payments during and after college, while LISA payments adjust according to levels of income, Clarkson officials say.

In addition, there is a minimum income threshold and a maximum payment cap, so students who use the program will not pay if they do not reach a minimum income level, and those who earn a substantial income will not pay more than a certain maximum amount.

Candidates can still qualify for merit-based aid and scholarships. In this case, ISA would cover the difference between the amount of aid and the total costs, and the terms of a student’s contract can be reduced.

“We have always considered our students to be our partners in education and in impacting the world,” Clarkson’s website say. “LISA gives talented students who aspire to corporate leadership the tools to reach their goals without having the burden of high-interest student loans. It’s a win-win solution.”

All participants will have a six-month grace period following graduation from Clarkson to allow time for settling in a job.

For more information about the income-share agreement, visit http://www.clarkson.edu/isa.

Clarkson’s program is named for Earl Lewis, a 1966 Clarkson graduate, and Barbara Lewis.