Analysis the problem in Income sharing agreement

Abstract

The majority of the companies are starting new batches on a monthly basis and admissions to these batches are typically less than <1% similar to the admission acceptance rates observed in IITs and IIMs. The admission rates are very low as the students are subjected to a lot of tests and only when they clear these rounds of exams they are allowed to register for the program. Once they register for the program, they start attending the classes for a period of about 6 weeks. When the program ends they have a final exam to clear and once they have cleared it they start appearing for interviews. If the candidate does not get a job along the lines of the promised CTC or no job, then the candidate is under no pressure to pay back the training amount. The candidate might be given assistance for a fixed period to get back the job which meets the requirements in the IS agreement signed initially between the company and the student. Once the students receive the job which meets the requirements then a fixed portion of the student’s income on a monthly basis is used to settle the training fees till the whole portion of training fees is paid. This instrument gives students the flexibility to pursue their education without any financial duress.