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Stride Funding was founded in 2018 as a way to provide students with an alternative to student loans. The company offers income-share agreements with a short repayment timeline and low starting rates.
This lender is best for borrowers entering a high-earning field.
One of Stride’s selling points is its unique structure. Most ISAs are offered directly by universities, but Stride is one of the few companies that offers its product independently — though you’ll still have to attend an eligible program and school.
Stride also has a relatively short repayment timeline. In general, borrowers can expect to make 60 monthly payments over a maximum of 10 years.
Stride Funding offers innovative ISAs, but there are both benefits and downsides to be aware of before signing up.
No credit requirement: Though Stride will conduct a credit check, there is no minimum credit score requirement. Instead, Stride bases income share percentages on estimated future earnings, the amount financed and time to program completion.
Low starting ISA percentages: While your exact ISA percentage depends on your financial profile and program, Stride’s percentages start at just 1 percent per $10,000 of funding.
Career benefits: Stride offers networking opportunities, career-boosting workshops and job placement support for members.
Limited availability: Stride does not fund associate degrees, and borrowers must be within two years of their graduation date. Stride ISAs are also not available in Alabama, Colorado, Iowa, South Carolina or Washington.
Short grace period: Stride’s grace period is only three months. But borrowers will not have to start making payments until they make above the minimum income threshold.
In order to qualify for an ISA with Stride Funding, you must:
Currently, Stride does not lend to borrowers in Alabama, Colorado, Iowa, South Carolina or Washington.
A Stride Funding ISA is a good option for borrowers entering a high-earning field, since Stride says that it’s designed for borrowers pursuing health care, engineering, computer science and business. It’s also worth pursuing if you’re interested in taking advantage of workshops and other career services.
The income share rate offered by Stride ranges from 2 percent to a maximum of 15 percent. Borrowers may take out up to $25,000 per year.
Stride funding does not charge any application fees, though it may charge a fee if your payment is late. You can avoid this by setting up automatic payments through Stride’s loan servicer, Knowledge Finance.
Generally speaking, Stride borrowers will need to make 60 payments on their ISA, unless they meet the payment cap before that time. The maximum repayment timeline is 10 years.
Stride offers a three-month grace period after graduation before borrowers have to start making the monthly payments.
Borrowers can also request a short-term economic hardship forbearance if they’re experiencing illness, natural disaster and more.
Stride says that borrowers will not have to make payments until they earn a minimum livable wage, which it defines as around $30,000. Borrowers will not have to pay more than double what they received from Stride — so if a student borrows $10,000, their repayment will end if their repayment amount reaches $20,000.
Stride Funding has been the target of scrutiny in recent years. In March 2021, the Student Borrower Protection Center (SBPC) and the NAACP Legal Defense and Educational Fund claimed that the company’s lending model discriminates against students attending historically Black colleges and universities (HBCUs) and other minority-serving institutions (MSIs).
According to the letter, applicants who listed HBCUs when requesting a quote received higher rate quotes, even when incomes, credit scores and financial backgrounds were the same as applicants listing other institutions. Since the report has been published, no legal action has been taken against the company.
Stride’s application process is entirely online and can be completed on any device.
Here’s what the process looks like when applying through Stride’s website: