ISA Student Protection Act of 2023

The ISA Student Protection Act of 2023 establishes consumer protections for educational income share agreements (ISAs), which are contracts where students pay a percentage of future income in exchange for education funding. The bill limits total payments to no more than 20% of a student's future income, requires clear disclosures about payment terms, and provides discharge protections for students with disabilities or who pass away. It also clarifies tax treatment for ISAs and prohibits practices like acceleration clauses that would increase payments upon default. The bill applies to educational ISAs used for postsecondary education expenses.