“Social Finance’s Career Impact Bond strategy means people who enroll in their training programs don’t pay a dime until they’ve landed a stable job in their field.
After that, they share a fixed amount of their income until the program is paid back. Palandjian says if people lose their jobs, the payments stop.
‘At any given point that you fall below that income threshold or you get laid off again, you are free of any obligations. That’s part of the income share agreement. Again, unlike a loan when you’re on the hook no matter what, this is actually comparable with your financial success,’ said Palandjian.”